A version of this article first appeared in BAI’s May Executive Report: Unlock what’s next for digital. You’ll find insightful coverage in the issue on seamless consumer touchpoints, AI-powered loans, evolving a ‘digital-first’ strategy and more.
Digital transformation is complicated—but financial institutions (FIs) must drive the growth and consumer retention needed to remain relevant in today’s crowded market. According to the recent MeridianLink Consumer Survey, 36% of respondents stressed the importance of their FI prioritizing digital innovation, while nearly 30% admitted they’d jump ship if faced with slow or fragmented service.
This highlights the critical need for seamless digital experiences to eclipse the competition in an increasingly digital marketplace and secure sustainable, long-term growth.
As you gear up to craft your strategy for continuous digital improvement, do you have all the right pieces to get started?
Start connecting with the right pieces
Think of your journey as a complex, 1,000-piece puzzle. Each piece represents a crucial component in the evolution of your FI’s digital capabilities, from establishing a robust foundation to seamlessly connecting with consumers across various touchpoints.
At the outset, it’s essential to focus on connecting the border pieces, which form the cornerstone of your digital strategy. This involves laying the groundwork for a strong digital foundation, ensuring that your institution is equipped to meet the evolving needs of consumers—particularly the newer generations who demand seamless experiences across multiple channels.
Embracing omnichannel banking is key here, as it enables you to provide an integrated and consistent experience across online, in-person, mobile, phone, email and video touchpoints. By doing so, you empower consumers to bank on their terms, fostering loyalty and differentiation in a competitive landscape.
Build beyond the border
Filling in the puzzle doesn’t stop at the border. As you advance, the strategic placement of each piece becomes increasingly challenging yet essential for expanding your digital capabilities. Having established a foundation for connecting with consumers when and how they need it most, the focus shifts to nurturing mature digital experiences that keep them engaged and active in their banking journey with you.
Key strategies for this advancement include:
- Utilizing data analytics to gain insights into consumer preferences
- Streamlining processes to enhance efficiency
- Personalizing experiences to cater to individual needs
- Automating decisioning for agility and precision
- Fine-tuning operations for optimal performance
- Expanding into new markets and channels to appeal to broader consumer segments
Building on your existing omnichannel banking operation, you can seamlessly offer consistent, tailored experiences across all consumer touchpoints. Additionally, embracing advanced automation features supported by data empowers your FI to maximize staff efficiency by automating repetitive tasks, freeing time to concentrate on proactive support, troubleshooting and pursuing high-impact initiatives.
Piece together the future
Our new era is characterized by continual evolution toward innovation and excellence. In the next phase, the focus shifts from assembling components to fostering a culture of connectivity and adaptability.
As Isio Nelson, BAI’s managing director for research, aptly pointed out, “Deposit growth went from not even making our Top 10 in 2022 to being number one for 2024.” The tides in banking have been shifting year over year, and the findings from the BAI Banking Outlook Special Report on 2024 Trends show a clear trend—deposit growth, new customer acquisition and enhancing the customer digital experience emerge as primary challenges for FIs in 2024.
How can banks tackle consumer digital challenges?
Through the provision of personalized services, optimization of operations and introduction of innovative products, your institution can cultivate stronger connections with consumers, establishing itself as a frontrunner in an increasingly competitive landscape. This approach empowers FIs to foster growth and expand market reach while distinguishing themselves from competitors.
Looking ahead, FIs must uphold agility, responsiveness and forward-thinking. By embracing digital transformation as an ongoing journey rather than a static destination, you can skillfully piece together the puzzle of efficient growth and market security with confidence.
Devesh Khare is Chief Product Officer at MeridianLink.
