With the push to be more mobile-friendly, the banking industry is seeing a massive transition in how it does business. In fact, Bankrate has recently reported that, to accompany consumer trends, banks are opting for digital-only services for new clients including features like starting CD’s.
A top-to-bottom shift in servicing is guiding banks to find new and innovative ways to gain clients and keep them happy. While mobile banking is nothing new, the dependency and ease of use with it is now taking top priority due to younger generations now opening their first accounts. Having a solid mobile app is now the bare minimum for banks, so keeping up with trends will only help to secure their footing in the industry.
Here are some trends either currently under way or heading to banking institutions soon.
API’s, the software that connects applications, including mobile apps, to back-end office IT systems, are set up for surge in development this year. These are primarily used to enable new services like mobile banking features.
Banks are partnering with financial tech companies more and more via open API’s. In fact, by the end of 2018, about half of global Tier 1 and Tier 2 banks will offer at least five external API’s, according to IDC.
TurboTax upped its services this year with virtual assistance for its customers using the tax platform. Now, banking will step into the same kind of field with a more personal approach. Ally Financial has had its own Ally Assist for a few years now, Capital One debuted Eno in 2017, and Bank of America is set to introduce the word to Erica, its own virtual assistant for customers.
The big push for this feature is to enhance the ability to connect with consumers in a more personable and connective way. Plus, it’s cost effective, and bank are looking for cost effectiveness everywhere especially in things like economical Bankers Insurance and staff sizes. These virtual bot assistants will soon do more than just answer questions; they’ll take more advisory roles by being able to offer suggestions to customers.
There’s a good chance a lot of people in the banking industry have heard of Bitcoin, the digital currency that burst onto the scene in recent years with the goal of revolutionizing payments. Bitcoin is an application that runs on something called Blockchain.
This is a secure transaction ledger database shared over a network of computers. It records and stores every single transaction that occurs in the network. This system essentially cuts out the need for a third-party payment processor. It’s a streamlined, direct approach to payment systems, and it’s only growing more and more efficient to use.
Banks are businesses and they need to continue to attract and retain new customers. Traditionally customers would join the bank their parents or trusted friends would be a part of, but now choosing a bank is more user-focused. Customers choose whichever is easier to use, has more features and also has better service.
This trend has only emboldened chatbots, which are guiding customers on their journey through mobile and online banking. Chatbots greet customers, invite users to ask questions about a product, engage their needs directly and provide relevant information. This simple add-on can and has increased the number of customers at banks, and is proving to be a more cost-effective way to enhance use and engagement.
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