Last year brought about many unexpected changes. Plenty of habits underwent these changes and the ones with digital infrastructures experienced that the most. In addition, given the financially volatile atmosphere, topics like digitalisation of the banking transactions gained immense importance.
In line with these, an era of empowered individuals is knocking on the door. Mobile apps and personal transaction capabilities are getting more comprehensive day by day since people are forcibly being locked up at their houses. They try to operate their finances via digital banking or FinTechs. For example, this report states that FinTech apps have experienced a %72 raise on their usage percentages since the pandemic has begun.
Without a doubt, the banking industry has showcased a gigantic effort to match a varied array of customer expectations as quickly as possible. However, they might not match the speed of FinTechs which have been digitalization centred for a longer time. Eventually, it won’t be surprising to encounter digital customers shifting their attention from banks and credit unions to more efficient solutions.
Keeping all of these in mind, some predictions can be generated from what the world has gone through. Digital banking trends are shifting towards a more user experience-oriented approach. McKinsey underlines the importance of gaining a more comprehensive understanding of the digital experience since the compass of 2020 has pointed out that direction repeatedly. Unsurprisingly, the case now in 2021is the same.
5 Digital Banking Trends of the Future
What 2020 taught to almost everyone is how important experiences are and this lesson is binding even for financial institutions. Evolution of the US Neobank Market Report demonstrates that roughly %90 of US respondents use mobile banking channels.
This can be interpreted as the banking experience almost equates to the digital customer’s satisfaction. So, consumer expectations hold impressive importance. 2021 trends curve themselves under all of these expectations.
Personalization is the process of transforming customer interactions in line with their individual data. Collecting a valid and efficient amount of data to provide advanced services and advice will be in high demand for 2021. The reason for this lies within the products and services provided by FinTechs and digital banking.
They are highly customizable and they should be since any simplification of those transactions is a blessing for the customers. Thus, recording necessary data, processing it with artificial intelligence that has a machine learning function and printing out useful outcomes will definitely be on the menu for 2021. AI-powered chatbots might be handy for harvesting the required data.
For sufficient personalization, an end-to-end 360-degree customer service is quite essential. Therefore, disjointed data is not useful. If digital banking can transform itself to be more comprehensive, personalization will eventually follow and customers will be able to breathe in the freedom of better operability.
Traditional investment solely focuses on manual instructions that are time-costly. However, the future confronted a different route for everyone by introducing Robotic Process Automation (RPA). Algorithm driven AI Robo Advisors are the equivalent of that route being followed until its end.
Thanks to this technological development, not only the workflows, but even the repetitive commands given by the user can be automated. Thus, both the user experience and the overall banking process become easier to orchestrate. This blogpost claims that using bots for some manual processes might decrease the cost of such actions ranging between %30 to %70. So, it won’t be surprising to observe an increase in automated processes in 2021.
Improvements in User Experience
Adapting to the new digital reality is hand inhand with providing an improved user experience service to all customers. If not, there is an imminent risk of moving on to different financial institutions.
Gen Z is highly fond of an entertaining experience, studies claim. Thus, gamification and improved operability with fewer requirements are the necessary attributes that the banking industry should be after. Plus, mobile-oriented user experience design should be in the centre of the focus without a doubt.
Not only that, due to the pandemic, enjoyable experiences are longed for by almost every individual. So, any attempt to attain a more customer-friendly atmosphere can result in unexpected success. Since the use of FinTechs and digital banking transactions has accelerated, user satisfaction parameters are valuable and relevant more than ever.
Besides, since real time data service is a must, digital customer experience transforms into one of the most crucial issues around. The reason why is that real time transactions demand smooth sailing operations and if any turbulence occurs, users can lose quite a lot. Thus, digital customer experience should be highly valued to prevent any losses for customers.
To determine what really matters, the steps listed above should be operating smoothly. Therefore, one can say that digitalization is a whole-package approach to be contemporary in 2021.
Easier User Interfaces
User needs should be met attentively. So, “bootstrap” designs that alienate customers from the products are not quite recommended. Since the use of digital banking transactions and mobile apps is on the rise, each day a new person is introduced to the world of FinTechs. Thus, a boring and complex introduction might damage the adaptation process quite significantly.
The modern approach to such a phenomenon is to apply for “tailor-made” visual designs. Simplifying the learning process with easy-to-use operation boards, solving complexities can prevent frustrations and disappointments. In 2021, the momentum of digital banking and FinTechs won’t slow down out of anything. Therefore, netting new users with developed yet operable interfaces will be a hot trend in 2021 nonetheless.
An Omnichannel Approach
Eventually, if all of the trends from 2020 and forecasted trends of 2021 are accumulated together, an omnichannel take on digital banking is clearly the end-result. From mobile to web, acquiring new customers, providing improved experiences to the current ones and collecting and enriching data for a better service can only take place where there is an omnichannel approach to all branches of digital banking.
Thus, 2021 will be dominated by the companies who already began to ensure this extensive and interconnected type of banking.
To be informed about what the future might look like is an important advantage to possess. Some companies have already applied for various methods to achieve that strategic edge like open banking and such. However, being contemporary is a mindset that’s been derived from a careful analysis of the past, now and the future. Although the Covid-19 pandemic has really shaken things up, the roadmap is rather clear.
The result of such analysis is apparent: Developing more customer-friendly, data-driven, result-oriented services with an omnichannel approach.