Complacency is a bank killer, impacting the ability of a bank to compete and respond to the changing needs of consumers. The best defense against complacency is to accept these five undeniable truths about digital banking and move forward with a unified commitment to embrace change:
- Invest in digital, not physical — the goal of most bank branches is to attract new customers or improve on customer experience; the problem is that there has been a 60% drop in the number of branch visits in the past five years. Most banks will benefit from shifting funds for new/renovated branches to improving digital platforms.
- Most customers want to open accounts digitally — customers generally do not want to spend time at a branch doing what they could do at home in five minutes. Invest in a highly-streamlined digital account opening process to increase consumer satisfaction and the number of new account openings.
- Multichannel onboarding pays for itself — in nearly every instance of multichannel onboarding, retention of new customers went up enough to pay for the onboarding program, even before the cross-selling of other services began.
- Customers demand personal attention — customers are accustomed to personal attention with nearly every business they interact with; banking should be no different. Customers want their bank to know them, look out for them and reward them.
- Simplicity wins…every time — the winners in the new digital age will be those that can simplify buying processes and ongoing engagements throughout the customer journey. Uber, Amazon, Google, Venmo, PayPal, etc. all simplified what was once a much more difficult process.