3 Digital-Only Banking Trends for the Future – Deltec Bank perspective

October 14 19:16 2019
3 Digital-Only Banking Trends for the Future - Deltec Bank perspective

Deltec Bank
The future of the digital-only banking experience remains uncertain because we do not know how fast technologies will develop. Some markets move at different speeds than others, and a few of them even head in different directions – Deltec Bank

Online banking has become the primary interaction channel for most consumers. The financial industry finds itself in a place where it must continuously invest resources to keep up with the latest digital trends. Changing consumer behaviors mean that the financial institutions that are early adopters of digital-only activities will be the ones most likely to survive the push toward automation.

Over the next decade, up to 80% of today’s active financial firms will be either irrelevant or out of business because of technology advancements, behavioral changes, or new competition.

These are the trends that today’s financial institutions must watch to ensure they are a part of tomorrow’s conversation.

1. Real-Life Interactions

Banks, credit unions, and similar institutions must enable their customers to seek financial products online. There will be a shift toward co-browsing, video chat, and audio-only customer service that helps to facilitate this transition. New augmented reality tech will make it easier to digitize the branch experience so that self-service still feels like an interactive option.

Financial institutions must look to foster a deeper level of engagement to be successful in this area. Look for a combination of artificial intelligence, automation, and digital banking apps to encourage this process.

2. Lifestyle Banking

The banking sector is moving toward new customer demographics based on values, goals, and lifestyle choices. This shift in priorities allows a financial institution to offer targeted propositions based on the current needs of individuals and families.

Consumers will look for non-financial experiences that enhance their life in some way from their banks or credit unions. Agencies will need to find ways to embed their services and products in these opportunities to extend the reach of their brand message. Banking will not be a destination business like it has been for more than a century.

3. Online Simplification

There are two reasons to embrace simplification for digital-only banking resources. The first involves the online novice who needs a straightforward user experience to handle their financial needs. Then the other need includes digital natives who want experiences that are easy to access and use.

People have become accustomed to the one-click purchasing option that Amazon offers. You can get instant music for free with apps like Pandora. There is an expectation that their bank or credit union will provide a similar experience.

Agencies can meet the expectations of this trend by designing their services around the journeys of their customers. Users will feel enabled to move across every banking channel when there is no friction generated by their experience.

The future of the digital-only banking experience remains uncertain because we do not know how fast technologies will develop. Some markets move at different speeds than others, and a few of them even head in different directions.

What we do know is that the disruption from digitalization and digitization will continue over the next decade. The institutions that are willing to transform themselves based on trends like these are the ones that will thrive in whatever future environment develops.

Disclaimer:  The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.

About Deltec Bank

Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.

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Company Name: Deltec International Group
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Phone: 242 302 4100
Country: Bahamas
Website: https://www.deltecbank.com/

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