Digital experiences have virtually replaced in-person visits to brick-and-mortar financial institutions over the past two years. This process — both encouraged and intensified by the pandemic — has been especially challenging for traditional financial institutions that have had to adapt on the fly by adopting complex digital solutions, often starting from scratch.

However, now that most smaller financial institutions, like credit unions, have managed this transition fairly successfully, it is time for them to begin planning the next level of digital rollout and elevation of account holder experiences.

Digital banking is the new normal

Digital banking used to be a service used primarily by younger people who communicated with their whole world via a keyboard. This is no longer the case.

More users, broader demographics

The United States will have over 195 million digital banking users this year and is expected to pass 200 million next year. This group represents more than three-quarters of the U.S. population.

For many older Americans, the transition came out of the pandemic. Indeed, more than 90% of people over age 60 used digital banking for the first time during the pandemic. While young people have been banking online for some time, the addition of older consumers makes it essential for financial institutions to get their online services right and do it now.

Digital account opening is key

As recently as 2019, less than half of smaller financial institutions opened as many as 5% of their new checking accounts digitally. Of course, smaller financial institutions made up only 15% of all checking account applications then, so that smaller digital number is less shocking than it sounds.

Originally driven by the tech revolution among megabanks, digital account opening exploded during the COVID-19 crisis, with nearly two-thirds of new primary checking account applications by mid-2020 opened online or on a mobile device. The new secondary checking account is even more likely to be opened online. Given this rapid changeover, a user-friendly digital account opening process is critical to the continuing success of smaller financial institutions.

Online account opening offers what your audience has been telling you they want for years: convenience, efficiency and ease. Consumers can easily choose a new bank and mix of accounts with a little research and a few minutes online. Smaller financial institutions must be in this mix to survive.

More than the basics

But it isn't enough just to let account holders open accounts easily online. While they're still very concerned about low fees, higher interest, and high-quality service, they also want to be able to use their accounts digitally. In a recent study, more than 95% of consumers said they want mobile and online access to their bank accounts. They want digital financial services that are accessible and intuitive, personalized, consistent and, most importantly, secure.

Digital services that will become increasingly important to your account holders include:

•          Digital loan applications. Applications should be completable within a few clicks and allow for e-signatures and simple document capture.

•          Instant P2P payments. Instant payments are a simple payment solution for sending money instantly from any device.

•          Auto bill payment. Your account holders don't just want to be able to pay their bills online; they want to have them paid for them.

•          Card management. Account holders want to be able to turn cards on and off, set up auto payments, apply online and set transaction limits.

•          Contactless payment. An extremely popular service arising out of social distancing, this allows payment by tapping a smartphone on a POS terminal.

Creating a powerful experience

The user interface and the online user experience are key to the success of your digital banking program. Your program should include:

•          Ease of use, making it intuitive and user-friendly.

•          System-wide access through the original digital account.

•          AI to predict and enhance services.

•          Personalized experiences based on account holder needs.

Your system should be customized to reflect information and services that your account holders frequently need and search for. You will also want to provide easily accessible resources within your apps: how-tos, guides, training for complex apps and easy links to your other services. Make it possible for your account holders to contact staff at your financial institution through a real-time chat, video communications or both.

You can even leverage real-time/place lock-screen notifications based on your account holders' locations and their unique needs to further engage them in your personalized digital account experience.

Larky nudge® creates powerful experiences

The Larky nudge® platform gives you a simple way to engage your newly digital account holders. You can create powerful digital banking experiences by using real-time/real-place notifications for services and products they were already seeking.

Integrating seamlessly with digital banking platforms, nudge® notifications are more than just mobile ads. They can increase your account holders' app engagement by nearly 90% with messages as simple as alerts for a low account balance. Beyond those kinds of notifications, however, Larky lets you send location-based notifications to account holders engaged in a purchase — such as turnkey programs marketing an auto loan program to those engaged in car shopping.

Contact us today and let Larky Nudge® show you how we can help you journey with your account holders into an enhanced and exciting digital banking world.

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