In 2020, the coronavirus pandemic catalysed the adoption of digital banking among consumers because social distancing strategies were being implemented across the country. It created a migration from physical to digital, and these new behaviours are expected to be permanent. The bar was set very high in the digital transformation efforts and digital banking customer experience.
This year, it is expected that the digital banking trend will continue to be even more intensified. The following trends will assist banks to develop a deeper engagement and enhance the adoption of the new digital banking offers.
Expected Digital Banking Trends in 2021
Expansion of the Digital Perspective
Numerous opportunities and possibilities have been created as a result of the transition to digital banking. Still, these opportunities have not been utilized to their potential especially in the banking and finance sector. Most consumers are expecting companies to come up with new means of delivering products and services.
It is surprising that finance institutions were found unprepared by the pandemic yet people largely depend on them. However, the banks that will make the most this year are the tech-driven ones. They are expected to be digital and develop digital strategies accordingly.
Establishment of Experience-Oriented KPIs
Due to the transition of the digital paradigm towards customer-orientation, more and more companies are rethinking not only their business approach and inner culture, but also the measurement of performance.
For ages, the key performance indicators have always put emphasis on the number of prospects and leads, conversion and sales. However, the focus is expected to shift to:
- Emphasis on receiving positive and negative feedback on social media networks
- The number of customer complaints and their reasons
- User feedback
- Number of consumers that recommend the product or service to their friends
Many firms are expected to evaluate their KPIs and make sure that they are aligned to steer employee efforts in the right direction. For instance, companies will want to know what their customers think of their mobile app. The user feedback obtained will be used to improve the design and features of the app. KPIs that can be used to measure customer satisfaction include Google Play and App Store app ratings, social media reviews and feedback, rate of retention and switching, active customer population and customer loyalty index.
Automation of Processes
The coronavirus pandemic hugely exposed financial markets, creating a need to address unanticipated circumstances in an instant. Due to banks and other financial institutions being worried about shrinking revenues and loan losses, more attention is being given to automation and robotics. Both in-work and outsourced robots can provide a cost-friendly alternative to human resources.
Other benefits include improved efficiency, enhanced accuracy, increased customer experience and great flexibility. The need for automation has been greatly facilitated by external service providers who have specialized in providing scalable solutions to small and large companies at reasonable charges. For fintech apps, Allfront delivers high-quality web applications for startup business to create memorable user experiences. Automated processes are expected to increase dramatically despite the negative effects of the coronavirus pandemic.
Redefined Work Functions
Financial institutions are re-evaluating their way of working, where they work, and the skills that are required to get the job done. Now more than ever, many firms have discovered the benefit of adaptability, flexibility, teamwork and self-sufficiency during the pandemic.
At first, it was the global crisis that necessitated the need for remote collaboration, but more and more companies are embracing it as their way of life. This is because many companies see remote working as a means of cutting down their cots and competing better with digital organizations.
Investment in Security and Privacy Features
While most financial institutions are concentrating on enhancing their customers’ experience, the same institutions are making significant investments in security and privacy solutions. The reason for this is that not only could there be a surge in security breaches, but also because customers are becoming more intolerant of organizational blunders.
Data privacy and cybersecurity are expected to become a unique selling proposition, and in the long run, consumers will be ultimate owners of their identity. Customers will be expected to control the access of their data that is on websites, mobile applications among other digital platforms. Financial institutions will be expected to comply with the already stringent security and privacy laws and regulations.
To ensure the success of digital banking transformation, it is vital to have a clear alignment between all functions of an organization. Without commitment to the transformation process, there will be wastage of technological investments and poor customer satisfaction which will result in negative customer feedback.
In 2021, banks shifting to digital transformation must prioritise data, analytics and technology.
David Stellini - Co-founder @ AllFront.io, Seasoned fintech application developer, and co-founder of AllFront, a talented UX / UI team that specializes in front-end development for fintech startups and enterprises.