when account holders would come into the branch or when a commercial banker would go out and spend time with an account holder. The essence of banking was helping the account holder get where they wanted to go, whether the journey was for them as an individual or for their business. For example, an account holder who had a relationship with their bank might have gone into their branch and asked their banker if they could skip a payment because they were in a financial bind. Those requests were made in person, and the banker would make a decision based on what they knew about the account holder and their personal relationship. The core of banking hasn’t changed. What has changed is the way consumers interact with their financial institution. Now that the vast majority of interactions are digital, it has become more challenging to build those personal relationships, understand the customers’ needs and deliver personalized experiences and products. But digital technology advancements are enabling financial institutions to understand their account holders’ needs to serve them better — and the key to this ability is data. This new frontier is a game changer in financial services — and most financial institutions understand this. In a recent Q2-sponsored survey conducted by The Financial Brand, nearly 95% of respondents said that using data to enhance or augment the digital banking experience is important (Figure 1).
By Will Furrer Chief Strategy Officer at Q2
What if every time you logged onto Netflix, you saw a list of movies that wasn’t curated for you? What if they offered you the same titles they offered every other account holder? Would you feel like Netflix understood you as a customer and knew what you like? Or would you start looking around for a streaming service that understood your tastes and preferences and evolved its offerings to suit your changing needs? The answer is the latter of course, and that’s pre- cisely where consumers and businesses find them - selves with financial institutions. For more than two decades, the financial industry has focused solely on how to digitize every banking function in one of two environments — retail or commercial banking. But now that personalized digital experiences have become the norm in other industries, the financial services industry is under pressure to provide better digital experiences that align with consumer and business customer expectations. From Handshakes to Keystrokes Historically, bankers have been successful by getting to know the needs of the individual account holder. That relationship used to be cultivated As financial options for consumers and businesses increase, banks and credit unions need to broaden their digital solutions beyond traditional banking products to stay relevant. It’s all about getting to know the customer and delivering personalized experiences — and leveraging data and fintech partnerships are the keys to success.
Enhancing the Digital Banking Experience
How important is using data to enhance or augment the digital banking experience to your institution?
Not at all important
© February 2023 SOURCE: The Financial Brand
8 THE FINANCIAL BRAND INSIGHTS SPRING 2023
THE FINANCIAL BRAND INSIGHTS SPRING 2023
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