The stakes keep getting higher in the financial services industry. Banking customers young and old are comfortable using their mobile devices to manage their money. As a result, banks and other financial institutions are responding to these shifts. A race is on for the best online banking experience to offer.
Helping to make these innovations possible includes a whole new set of technological advances. Some financial institutions are on top of these changes and responding accordingly. But others are lagging behind.
If your bank or credit union is among the laggards, you need to ask big questions:
1. Are you ready for these impending changes?
2. Is your technology ready to meet the rising expectations of your account holders?
3. Is your mobile banking technology game-changing?
If your answer is no to these, then it’s time to get your digital house in order. You need to take advantage of the new era of financial technology so you can create the best online banking experience for your account holders.
Today, your account holders expect more, and financial institutions must take control. They must ensure they have the right information technology power. They must take care of their account holders’ desires. They want a great digital experience. And they must start incorporating tools on several digital fronts, including customer data insights, push notification marketing and automatic transfers.
If not, there’s a clear and present danger of being swallowed up by other FinTech’s and larger financial institutions.
Technology Raising the Stakes for Online Banking
Four major changes are affecting financial technology and banking operations. It's important that your financial institution not only be aware of these changes but take advantage of them to stay competitive.
1. Big data and deep learning technologies. Big data feeds deep learning technologies such as artificial intelligence and machine learning, which helps financial institutions better predict account holder patterns and behaviors. For instance, machine learning can help detect anomalies in transaction patterns by important customers.
Using machine learning powered predictive analytics platforms can help prevent fraud for VIP customers with large loans, high volume activity and big balances. These account holders can be very important to financial institutions.
2. Open banking and connectivity. Open banking and subsequent connectivity are another major change affecting financial institutions and data around their account holders. Open banking is the practice that requires financial institutions to be transparent with customer and/or payment data to third-party providers.
In open banking, a single application can offer countless services and heighten convenience for account holders.
3. Blockchain ledgers and biometrics: Blockchain is also a game-changing technology that is having an enormous impact on financial institutions. Blockchain acts a distributed ledger that stores transactions and information about a bond purchase or an NFT sale.
Protocols are used to keep an indisputable record of ownership. Blockchain also facilitates transactions of assets. Financial institutions are getting adopted blockchain for a number of reasons including; lowering fraud and errors, switching to a digital trail from a paper trail, and getting faster clearing and settlement of cross-border payments and remittances.
Follow the big financial players, and you’ll see that many of them have structured operations around blockchain protocols and cryptocurrency reserves. It is all part of the trustless security that comes as part of the blockchain in its open standard of financial transactions.
4. Custom mobile and digital banking. Mobile banking practices have exploded in recent years in an effort to offer the best online banking experiences. Nearly 80% of smartphone owners use their devices for online purchases, and 86% of Americans used their mobile devices to check bank balances in 2020. Others are also trading stocks and cryptocurrencies on their phones.
Clearly, using a mobile device and taking control of their finances on their devices is what your account holders want to do. It's up to your financial institution to respond.
Leverage Technology and Win Customers With Push notification marketing
Your financial institution can leverage these rising technology trends to offer the best online banking experience. Larky's nudge® will help drive account holder engagement sky-high through targeted push notifications that appear to your account holders, at the right time and place. Larky's nudge® software uses push notification to assist financial institution marketing and modernizes the mobile banking experience.
Work with nudge® to engage with account holders directly to promote new offerings, send messages about credit alerts and suggest new ways to save time and money.
To learn more about how we can help you in this tech-savvy industry, contact us today.