Is the Banking Sector Tapping into Digital Transformation?

While Digital Transformation has taken the forefront of priorities at most financial institutions, progress in this sector seems to be a little slow when it is compared to customer expectations.

Banks and financial institutions are struggling to keep up with the ever-increasing demands of their consumers. The consumers themselves are very difficult to keep up with as they have changed the way they conduct their banking and they expect banks to keep up with them! Why? Because organizations outside the banking sector show consumers the endless possibilities of a digital world and now, those consumers want the same thing from their banks!

The trend now in digital and mobile banking is changing to accommodate this need as less and less consumers want to actually physically enter a bank to perform their transactions but will access their online and digital banking portal several times a day.

At the rate this is going, where will Digital transformation take banks in the near future?

Well, first, RIP Cash!

Cashless and contactless payment is driving through all segments and industries. Cash is still used for many transactions but it is becoming less frequent and many banks believe this is the first major part of their transformation: changing the payment industry.

While many do see this as a key step in their digital transformation, very few are taking advantage of this new landscape. To be ready for this, financial institutions have to invest, and invest fast, in new technologies to ensure they are not left behind in the new cashless landscape.

Second, banks need to get up close and personal with their clients.

The customers are always king and they are now demanding highly personalized digital interactions across all sectors. Banks are no different.

Today, banks have to really push their technological boundaries to offer highly personalized interactions for their customers. The good thing about this is banks can use this to give a high level of service and also predict the customer's future needs based on their past interactions. This alone increases engagement, sales, and ultimately revenues.

Despite the uncertain economy all over the world, financial institutions must invest in digital transformation and strategize to move forward. Strategies that will push them into the next level include updating existing payments infrastructure, using AI to improve customer experiences, and increasing highly personalized engagement with the consumer in real-time.