How customer-centric strategy spurred a wave of banking transformation
Mobile-loving consumers have been driving digital transformation across virtually every B2C industry, and banking is no exception. As account holders have increased their demands for better mobile tools and modernized banking experiences, banks have been forced to adopt a customer-centric model to shape their digital strategy.
To meet those ever-increasing demands, financial institutions have made sweeping changes to how they do business, affecting everything from branch operations to remote banking functionality. Services such as mobile check deposit have been rushed to the market based on strong consumer preferences for these services and increased accommodation by those companies’ competitors.
Transforming the bank branch
The physical bank branch hasn’t disappeared — instead, it’s undergone a transformation. As Media Logic reported, Bank of America has been at the forefront of this brick-and-mortar innovation, equipping its branch employees with tablets and smartphone-based tools to provide better services to incoming customers.
The use of mobile technology has also allowed these employees to become more mobile within the store, moving around the floor to meet with customers.
Meanwhile, these staff members are undergoing additional training to serve an evolving role as community managers. These employees don’t merely handle banking activities and sell products to consumers. In addition to these roles, community managers help familiarize customers with user-friendly mobile solutions they can use to handle more banking activities remotely.
Forget about monthly statements from your bank. Financial institutions are opening up the lines of communication with consumers and improving their experiences as a result. Banks can initiate messaging over text and social media as well as push notifications driven through mobile devices. These messages can relate to everything from payment activity to product recommendations, and even to questions related to possible fraudulent activity.
This personalized messaging may be specific to their recent banking activity or spending behavior, which addresses another key concern for consumers who want a personalized experience from their bank, as with any other company.
Expanded mobile products
Consumers have asked their banks to provide a more diverse array of banking products, including solutions available through mobile. Banks have responded by offering additional mobile products alongside expanded mobile functionality. Services such as increased spending monitoring, budgeting tips, credit score tracking and integration with other financial service apps have been popular among these financial institutions. Meanwhile, banks are increasing the capabilities of their mobile apps.
As PricewaterhouseCoopers pointed out, activities such as credit card and loan research, loan applications and mortgage research are all preferred by a majority of consumers to be handled through digital channels. As this trend continues to move toward digital preferences, banks will face even more pressure to offer as many mobile banking services as possible.
Banks are working hard to transform their operations with emerging digital technologies, but don’t forget that this customer-centric approach began with consumers demanding a better experience.