The future of banking was steadily shifting to the digital channel before the COVID-19 pandemic hit, but the resulting fallout accelerated that change, with demand for digital services climbing suddenly and significantly. A recent Financial Brand article looks closely at a number of ways banking may look radically different in the years ahead.
Wide-ranging changes
The potential changes shared throughout the article are broad. For instance, an increase in the use of data-driven insights in security, marketing, and more will drive home the need for FIs to leverage the data available to them intelligently and efficiently. What’s more, as FIs rely on this data to communicate effectively, their account holders’ expectations around the benefits they receive for sharing data may grow. And these deeper connections based on data may translate to new ways of connecting, such as increased account holder interest in providers that support the social causes they believe in.
Fundamental elements
While the potential industry transformations that lie ahead may be broad and diverse, Q2 expects three linchpin components to play a big part in forthcoming changes.
- Open technology
Seamless experiences aren’t differentiators; today, they’re table stakes. Cobbled-together, legacy tech doesn’t provide the experiences account holders expect, but open technology can. API-driven integrations, customizations, and extensibility will play a key role in making sure account holder experiences are personal, relevant, and friendly. Open tech can also enable FIs and non-FIs alike to quickly and easily build the specific banking services their account holders demand. - Design thinking
One size doesn’t fit all when it comes to account holder relationships. Account holders are looking for meaningful financial experiences in the digital channel. Design thinking – a philosophy that emphasizes customers’ needs, goals, and preferences – provides a framework of empathy. By asking important questions, understanding customers’ problems, and delivering solutions, companies can address real needs and solve the deeper issues underlying their users’ challenges. - Data and security
Data is invaluable for deepening relationships in the digital channel. By understanding their account holders’ spending and saving habits and their financial goals, FIs can continue to foster, maintain, and grow relationships. Understanding account holder behaviors can help FIs provide increasingly relevant marketing, streamline sales and onboarding, build trust, prevent fraud, and more.
For a closer look at changes the industry may expect, read the Financial Brand article The Future of Banking: Tomorrow Will Be Radically Different.
Additional resources
Learn more about Q2’s emphasis on open technology, design thinking, and data and security.
