Banking and digital transformation
Posted: Sat Dec 28, 2024 3:33 am
This article is a reflection on the current situation of banking and the digital transformation that is upon us, taking into account what is already happening in the USA.
Millennials in the US are increasingly using digital banking channels to conduct their banking activities, and are visiting their bank branches less frequently than ever before. This is causing major moves by banking corporations to move large businesses to where the customers are. The company must be customer-centric, but changing the inertia of companies with more than 100,000 employees is no easy task.
The behaviors and preferences of this generation—which makes up the largest share of both the U.S. population and the working population, at 26% and 34%, respectively—will influence the future of the bank, as well as the relationship between the bank and the customer.
As other players in the sector increasingly provide services that consumers are using through their apps to manage their finances, the valuable relationship between banks and their customers will continue to deteriorate. Just look at how “innocent” apps such as Fintonic provide us with information about our finances. Do you think they do it for the love of art? The future is here.
banking application from mobile device
To better understand what the bank of the future will look like, BI Intelligence bolivia telegram lead rveyed more than 1,500 millionaire users (18-34 years old) with banking interests about their banking behaviors and preferences – from their preferred device usage, to what banking actions they perform on those devices, and how often they perform them.
Here are some of the key takeaways from that study:
mobile banking apps
The bank branch as we know it today will become obsolete . It will be some time before the change takes place, but improving online channels, declining branch visits, and increasing cost per transaction at branches are collectively leading to branch closures.
Banks are missing out on branding and cross-selling opportunities
Banks that do not act quickly will lose customer relationships, but of course the most dynamic will survive. Consumers are increasingly opting for digital banking services provided by third-party technology firms. This is disrupting relationships between banks and their customers, and banks are losing branding and cross-selling opportunities . For many banks, this will require further commoditization of their products and services.
The ATM will go the way of the phone booth. Relatively low operating costs compared to bank branches, coupled with customer preference for in-network ATMs, make the ATM an attractive substitute for bank tellers . But as cash and check transactions decline, the ATM becomes non-essential, ultimately facing the same fate as the physical branch.
Millennials in the US are increasingly using digital banking channels to conduct their banking activities, and are visiting their bank branches less frequently than ever before. This is causing major moves by banking corporations to move large businesses to where the customers are. The company must be customer-centric, but changing the inertia of companies with more than 100,000 employees is no easy task.
The behaviors and preferences of this generation—which makes up the largest share of both the U.S. population and the working population, at 26% and 34%, respectively—will influence the future of the bank, as well as the relationship between the bank and the customer.
As other players in the sector increasingly provide services that consumers are using through their apps to manage their finances, the valuable relationship between banks and their customers will continue to deteriorate. Just look at how “innocent” apps such as Fintonic provide us with information about our finances. Do you think they do it for the love of art? The future is here.
banking application from mobile device
To better understand what the bank of the future will look like, BI Intelligence bolivia telegram lead rveyed more than 1,500 millionaire users (18-34 years old) with banking interests about their banking behaviors and preferences – from their preferred device usage, to what banking actions they perform on those devices, and how often they perform them.
Here are some of the key takeaways from that study:
mobile banking apps
The bank branch as we know it today will become obsolete . It will be some time before the change takes place, but improving online channels, declining branch visits, and increasing cost per transaction at branches are collectively leading to branch closures.
Banks are missing out on branding and cross-selling opportunities
Banks that do not act quickly will lose customer relationships, but of course the most dynamic will survive. Consumers are increasingly opting for digital banking services provided by third-party technology firms. This is disrupting relationships between banks and their customers, and banks are losing branding and cross-selling opportunities . For many banks, this will require further commoditization of their products and services.
The ATM will go the way of the phone booth. Relatively low operating costs compared to bank branches, coupled with customer preference for in-network ATMs, make the ATM an attractive substitute for bank tellers . But as cash and check transactions decline, the ATM becomes non-essential, ultimately facing the same fate as the physical branch.