Editor's Note: In the spirit of the Holidays, we're sharing our biggest hopes for the evolution of digital banking trends and practices for 2019.
It’s that time of year again! It is time start thinking about and anticipating the needs for the coming year. So, in that spirit, we’re following up on our 2017 wish list of much anticipated digital banking features with more high-tech hopes for the New Year.
1. Automated Financial Planning
Mobile banking has provided us with complete control of our banking and financial needs, anytime and any place. Banks and credit unions have a wealth of data and access to customer’s financial information, which can be beneficial when using advanced analytics of artificial intelligence (AI) and machine learning to help advise and guide customers and provide them with a clearer picture of their fiscal health. However, in order for the concept of automated financial planning to be truly successful, the relationship between the customer or member and the financial institution must be strong – customers and members must have trust in their financial institution. JPMorgan Chase recently took a step to help strengthen their relationships and trust when they partnered with data aggregator Plaid to take extra precautions protecting customers’ financial data, even while using popular financial apps.
2. Expanded Card Controls
Banks and credit unions need to provide their customers and members with more control over the cards they hold. These card controls should consist of more than simply having the ability to turn the card off and on, but should provide users with the ability to restrict a card’s use by geography, activate travel notifications, set limits, change PIN, etc. These actions should be part of the functionality of any mobile banking application. This capability is still on the wish list because that is not the case with most cards. Providing these capabilities could actually increase debit and credit card use which, means more interchange fees for the financial institution.
3. Personalization/Know Me Functionality
Personalization gives customers and members the impression that they matter to their bank or credit union on an individual level. In fact, according to a recent survey, 73% of consumers already expect specialized treatment for being a good customer. Today’s digital banking platforms combined with analytic capabilities offer a plethora of opportunities to create and provide the personalized experiences that consumers expect. Using the data collected, banks and credit unions can eliminate the need to repeatedly ask for a name, last 4 digits of a social security number, address, etc. They can offer services such as notification on low account balances when recurring payments are due and offer advice on additional services that might be of interest to the customer or member, to truly demonstrate that they are paying attention to the needs of the individual. This will strengthen the relationship and confidence of the customer or member, which will ultimately result in a more profitable financial institution.
4. Reduced Friction
The industry is seeing a need to remove friction from day-to-day banking experiences. That friction is evident in the way you access a bank account, a credit card, open a new account, buy a home or even a car. With the use of digital banking solutions, some of these friction points can be eliminated or simplified. Eliminating keystrokes, complicated questions and duplicate data requirements will help improve the customer experience and satisfaction. This also relates back to the personalization a financial institution should offer. Leveraging digital solutions and the data available today will ensure institutions know their customers or members, reduce friction, simplify the process of accessing accounts and enhance the consumer experience, which again leads to improved revenues.
This is what’s on our digital banking wish list for the coming year – what’s on your list?