For you to cater to and nurture your customers with services they expect, you need to digitalize every aspect of your business. Designing these services to be channel agnostic and customer centric creates trust and builds relationships. Your key to staying relevant to your customers is to seamlessly and securely manage their customer journey.
Today’s users of banking services expect their bank to provide financial services and solutions that are state of the art but still secure, convenient and easy to access – anytime, anyhow, anywhere.
Bank to the future
By 2021, a staggering 2.4 billion people are expected to use digital banking, with 58% of digital banking customers wanting greater fraud protection.
Millenials are prolific users of digital banking, with 91% accessing digital banking on their smartphones, 71% believing that banking applications are essential, and 41% choosing their bank based on the convenience it offers (mobile features). The digital payment solutions market is expected to triple its current volume and grow from $450 million in 2017 to $1.33 billion in 2022.
Customer experience will be the most important issue for next-generation banking and paramount for customer loyalty. This is shown by the market adopting new technologies that are driven by customer behavior. Industry disruptors are setting new standards based on how to enrich the customer experience even further.
Next-generation banking customers have already adopted these new ways, with 67% being native in mobile banking usage, and with 54% of mobile banking users saying this behavior is driven by convenience.
Challenging times for fintechs
For you to engage with digital banking customers, your major challenges are connected with changing the value chain in order to identify new revenue streams and create customer stickiness. A shifting industry landscape offers potential for identifying new differentiators in order to create value to your customers. These growing digital demands, from infrastructural and technical perspectives, as well as from customers and their expectations, are immense.
Digital banking customers want stronger security online, with users expecting systems to be secure; offering tailored products across all touchpoints to ensure the customer journey is not only convenient but secure is therefore essential. The statistics speak for themselves: 71% of digital banking customers request more stringent verification methods, with 58% wanting greater fraud protection measures.
Indeed, mastering online security is at the heart of all future business, with 66% of digital banking customers concerned about malicious software, 68% about identity theft, and 63% about banking fraud. So far, financial organizations have been the main target for serious security attacks, with confirmed data loss of 24%, compared to healthcare organizations and the retail/accommodation sector both at 15%, and the public sector at 12%.
How to unlock the digital banking future
It does not have to be a dystopian future. In fact, digital services will be the success stories of the future, with 1 billion connected devices and IoT becoming payment capable by 2022.
The key to unlocking future success is managing and securing customer identities throughout the customer journey, including building a secure banking infrastructure to protect users and their data through biometrics, authenticating user identity through channel-agnostic verification, and authorizing secured identified transactions in a secure but convenient way.