The Financial Brand Insights - Fall 2021

her perspective on the move towards digital-only banking based on this recent study on customer satisfaction. “The nation’s largest banks and credit card issuers have been continually innovating new digital solutions that support increasingly complex tasks, such as problem resolution, personalized alerts and profile management. This is driving increased engagement and significantly higher levels of satisfaction as the world shifts to digital. That’s a challenge for regional banks that have traditionally taken a simpler design approach and are now starting to see customer satisfaction scores fall as many customers required more sophisticated digital offerings in 2020 than in previous years.” In the meantime, fintech firms like Chime have grown their customer base significantly in the past year. A study by Cornerstone Advisors and StrategyCorps “estimates that 12 million US consumers are now customers of online bank Chime.” Cornerstone Advisor’s Ron Shevlin writes in Forbes , “Not all challenger bank customers consider the fintechs they do business with their primary provider, but an alarmingly large—and increasing—number of people do. In January 2020, just 4% of Gen Zers and Millennials considered a checking account from a challenger bank their primary account. By December 2020, that percentage had grown to 15%.” The Solution For the last decade, community financial institutions have invested billions of dollars (maybe more) on technology to keep up with their large competitors and new industry entrants. The strategy has been to find the best third-party solution to address a specific technology. That strategy has been a fool’s errand. The error is focusing on technology instead of what makes fintech—and bigtech—special: a fanatical focus on the consumer’s experience. Technology has been an enabler of solutions, not the driver of change. For instance, Uber and Lyft took the

By Alex Jiménez Chief Strategy Officer at Finalytics.ai

Automating Customer-Centricity

There is little doubt that the COVID-19 pandemic has changed consumer behavior throughout the past year. The big question remains: which behaviors will permanently change? With the US beginning to open back up, we’re getting a glimpse of the possible future. For banks and credit unions, there had already been a trend of activities moving from the physical realm to digital, particularly mobile. In the era of COVID-19, we’ve seen that trend accelerate. According to an article by Steve Cocheo a BAI study found that “half of consumers are using digital products more since the pandemic’s arrival, and that 87% of them are planning to continue this increased usage after the pandemic.” Cocheo quotes BAI’s Karl Dahlgren, Managing Director: “Responses on learning how to use digital services were consistent across all generational cohorts. In fact, Boomers who found the digital banking experience intuitive came to 81%—suggesting that stereotypes about older consumers and technology simply are not true.” Community financial institutions are in a predicament. Their differentiation has been based on better customer experiences in branches and other physical spaces. Until recently, that edge ensured that they would have a position in the industry. However, as more and more people embrace digital experiences in their day to day lives, the bar for banking has been raised. For the most past, the organizations that have been able to meet the demand for engaging digital experiences have been large banks and fintech firms. Jennifer White, senior consultant for banking and payment intelligence at J.D. Power , offers

with Journey Orchestration

AUTOMATEWHAT COMMUNITY FINANCIAL INSTITUTIONS DO BEST: UNDERSTAND, LISTEN TO, AND ACT ON CUSTOMER NEEDS

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THE FINANCIAL BRAND INSIGHTS FALL 2021

THE FINANCIAL BRAND INSIGHTS FALL 2021

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