The new normal in online banking

It’s undisputed that the pandemic has created new hurdles in how people cash out and pay themselves, and many of the resulting changes in consumer behavior are here to stay. From banks slashing branch access and opening hours to fears that COVID-19 could spread through the exchange of cash, the coronavirus pandemic has accelerated digital transformation within banks and driven an increase of the use of digital payment applications.

In 2020 alone, Venmo processed $159 billion in total payment volume, which shows a 59% increase from 2019.

However, despite this rapid acceleration towards digital adoption, most financial services organizations have not adapted their digital technology tools to meet changing market needs. A recent Accenture report found that while 78% of banks collect data, only 7% use analytics and only 5% activate AI capabilities, to fully leverage data at every stage of the customer experience. .

As we navigate these changes and consumers increasingly manage their money on digital platforms, banks, payment applications and financial services organizations must evolve these key enablers to meet consumer expectations.

Below are five considerations for financial services organizations and banks to keep in mind as we navigate the new normal:

1. Adopt technologies that boost the customer experience: The financial services industry would be keen to consider adapting AI technologies such as conversational design. Considering that companies like Apple and Google already provide digital wallet apps and contactless payment options, they have the potential to facilitate the majority of digital payments and banking across the board. For banks to meet industry standards, it’s time to consider revamping their catalog of digital technologies.
2. Create customer profiles: Circumstances of the past year have catapulted us all into the digital e-commerce landscape, and the old physical banking solution is not working for the next generation of consumers. To stay relevant and meet consumer expectations, banks need to re-evaluate their digital communication tools to personalize customer interactions. By partnering with an omnichannel communications provider, financial services organizations can leverage data to create personalized customer profiles to anticipate needs and share them. law message to good time.
3. Reassess customer segmentation: Also, now is the time for banks to reassess or create a customer segmentation system. Customer segmentation will help banks personalize customer interactions by compiling customers with similar needs into a group. For example, if banks can identify financially at-risk customers (think employees who haven’t received their salaries, freelancers who are going through a drought, and businesses that aren’t eligible for Covid-19 relief funds) and sending them helpful information about benefit plans or short-term loans, customers will feel like the brand understands their specific needs, which ultimately leads to more satisfied customers.
4. Secure your platform to protect customer data: Additionally, banks must ensure that their digital platforms are secure and do not put consumer information at risk. During the pandemic, cyberattacks have increased at an alarming rate and, according to an Interpol report, phishing scams have increased by 59%, the use of malicious domains has increased by 22% and we have seen an increase of 36 % of malware attacks. For banks to protect their customers, it is crucial to integrate proactive communication tools to mitigate fraud and authenticate customer identity.
5. Educate customers: Additionally, financial services organizations should educate their customers on how to identify a cybercriminal. For starters, banks should let consumers know that they will never send bitly links in any correspondence, and therefore consumers should never click on bitly links in messages. Consumers can also protect themselves by checking all messages from their financial service provider. To verify text messages, consumers should always visit the brand’s online portal before further interacting with the text message.

As we head into the new normal, banks that revamp their technology will have an extreme advantage over those that don’t. Today, only time will tell what the future of banking will be.

Mr. Brien Jones-Lantzy is the Head of Carrier Relations for North America at Infobip.