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Home Challanger banks Transition to Digital-Everywhere Banking: How Bank Customers are Paving the Way

Transition to Digital-Everywhere Banking: How Bank Customers are Paving the Way

Digital banks are taking over the market, especially among small business owners, freelancers, and millennial customers.

These banks offer increased security and the latest innovative features that appeal to many customers. However, many older customers still prefer the traditional banks with physical locations that they are familiar with.

In-person banking can nurture relationships and provide the support that customers seek in loan applications, new account openings, account changes, or fraud reporting.

Digital-First Banking Space

Customers love their mobile banking apps so much that two-thirds of them say they cannot live without them.

Digital payments, requesting card replacements, and managing credit are among the most popular capabilities of mobile banking apps. Customers prefer to do their banking from a single app, which puts increased emphasis on a streamlined customer experience.

However, digital transformation has engulfed banks so quickly and fully that a void has been created in many FIs’ remaining physical locations. These locations are known as “ghost branches” and are especially prevalent in Argentina, where complex regulations have contributed to keeping many branches open.

Repurposing and revitalizing these branches represents a major opportunity for banks to maintain a human connection while offering the digital services customers demand.

An Insider’s View on Managing Change for Digital-Everywhere Success

With the banking industry under scrutiny due to a pair of high-profile collapses, consumers need their FIs’ support more than ever. Especially during challenging times, this means they need human interaction. Listening to customers and prioritizing change management can ensure banks implement the right technologies to support customers when and where they need it.

To get an insider’s view on managing change for digital-everywhere success, PYMNTS spoke with Barb Jacklin, senior vice president, head of retail product and digital customer experience for Wintrust Financial Corporation.

Barb emphasizes that the rise of digital banking has been so powerful and impactful that it can be difficult to determine which features are essential or merely convenient.

In response to the pandemic and increased competition, more banks are closing branches, considering new business models, and driving digital transformation across their organizations.

Why Digital-Everywhere Is Moving Banking Forward

This shift allows banks the opportunity to optimize their physical locations and reinvent the branch for the digital-everywhere age, enabling customers to choose their preferred method for specific financial needs.

With many customers still citing human interaction as an essential part of financial services, a hybrid model focused on customer value will provide the omnichannel banking experience that wins more customers.

In conclusion, digital-everywhere banking will move banking forward, and FIs must adapt to these changes if they want to stay relevant and competitive in the market.

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