The Covid pandemic created numerous changes for banks across the world. As challenger banks and fintech providers remain ever hungry for the consumer’s attention, it is a pivotal time in traditional banking history. Enormous challenges are now being faced by the banks. Those are such as how to capture market share and then to retain existing customers and also to attract new ones. They cannot rest up. Change in their approach is much needed and putting the customer at the heart of everything they do, will create a truly digital experience. They need to meet the modern-day consumer’s financial needs.
Banks need to reimagine their core technology, foster strong partner networks and understand the true meaning of digital transformation. Amidst the new difficulties that the banks face, they have a great advantage in that customers inherently trust banks and the services they provide. Those banks that emerge stronger from this pandemic will be the ones, that move towards a much more focused and strategic customer-centricity model. In order to retain existing customers and attract new customers, banks need to change their approach and their way of development and consumer services. They must hyper personalize their services. Big tech companies like Facebook, Google, Apple and Amazon have successfully crossed into the financial services market. The power, size and reach of these companies, is now making the traditional banks more difficult to compete.
Challenger banks and fintech providers, have the trust of consumers because of their long-lasting loyalty and services. The banking experience evolves from product-based to customer-based. Hence the financial institutions will be pressed to find new ways to deliver the hyper-personalization services that customers expect.
In 2021 and beyond, it is important that the banks leverage artificial intelligence (AI) and machine learning to help customers in improving their financial wellbeing. Banks should also embrace customer data to ensure their offerings add real value to the customers. Creating and maintaining access to consolidated data will help the banks in quickly responding to the consumers’ evolving needs. In humanizing banking, banks will soon realize it empowers them to innovate faster.
