Banks of the Future: The Next-Gen Customer
The traditional customer journey in banking has been a long-standing process that has been in place for decades. Customers would visit their local bank branch to open an account, apply for loans, or seek financial advice. However, as technology has advanced, this traditional journey has become increasingly cumbersome and outdated.
One of the main problems with the traditional customer journey is the time and effort required to complete tasks. Customers often have to wait in long lines or schedule appointments to meet with a bank representative. Additionally, the process of availing financial services can be lengthy and requires a significant amount of paperwork. This can be particularly challenging for individuals who are not financially literate or who are intimidated by the process. Another problem with the traditional customer journey is the lack of transparency and personalization. Customers often feel like they are just another account number, rather than valued individuals. This can lead to a lack of trust and loyalty towards the bank. Furthermore, the traditional banking system is not designed to meet the needs of today’s customers, who are increasingly mobile and digitally savvy. In the process of understanding customer journey, Financial Institutions are at disadvantage as the engagement of the user with their platform is often minimal. A simple qualitative analysis of user engagement on digital channels across the industries looks like this:
The rise of fintech companies has disrupted the traditional banking industry and has led to a new age of digital banking customers. Fintech companies, such as digital-only banks, peer-to-peer lending platforms, and online financial advisors, have introduced new technologies and services that have transformed the customer journey. These companies have made it possible for customers to complete tasks, such as opening an account or applying for a loan, quickly and easily through their smartphones or computers.
The new customer journey for the digital banking age is characterized by convenience, transparency, and personalization. Customers can now open an account, apply for loans, and seek financial advice through a variety of touchpoints, such as mobile apps, chatbots, and video conferencing. Additionally, customers have access to a wealth of financial information and tools, such as budgeting apps and investment portfolios, that can help them make informed financial decisions.
To crack the digital banking customer, banks and fintech companies must adopt a customer-centric approach. This means understanding the needs and preferences of customers and using data and analytics to personalize the customer journey. Historically, the context or the motivation for the financial service availed is often vaguely known by the provider. But in the new age, customer context has become of utmost importance and it is essential to drive services to them. One example in the space of investment services is as follows:
In conclusion, the traditional customer journey in banking is outdated and no longer meets the needs of today’s customers. The rise of fintech companies has disrupted the traditional banking industry and has led to a new age of digital banking customers. Banks and fintech companies must adopt a customer-centric approach and prioritize transparency and security in order to meet the needs of these customers and thrive in the digital age.
