Creating a Long-Lasting Banking Ecosystem
Improving the patron journey should be the main focus of traditional institutions. Where neo banks and fintechs excelled in meeting patrons at various points of contact, traditional banking remained stagnant and stale. Traditional institutions need to make transactions seamless online with the help of innovative product marketing and quality technology partners.
An ATM experience should be as easy to deposit a check as to scan a QR code and see the funds coming into a customer's bank account. In banking, self-service trends have accelerated; today’s customers can deposit checks on their own and transfer directly from peer to peer, and there is no longer a need for a middleman banker. What’s needed is to ensure that customers use the tools correctly.
Banks must make apps easy to use and read instructions and signage. Customer self-service enables customers to develop their financial planning skills. The traditional bank should provide tools that patrons need, should those patrons feel empowered.
Traditional financial institutions should consider both their mobile and desktop user experience (UX) design. A picture speaks a thousand words; this certainly holds with the growing need to applications customer friendly. The banks should not shy away from emerging technologies such as AI, long- term data collection or meaningful relationship building for each customer. It is necessary for them to make an effort to use user information to recommend customized tools and options, which will help in offering niche services.
These banks should be vigilant regarding the payment space when they draw inspiration from fintechs. Banks and financial institutions can benefit from adding technological and design capabilities by making their apps the most accessible by means of biometric features—a differentiator for users who are increasingly looking for the most efficient, time-consuming solution. As the API ecosystem grows rapidly, more financial institutions can benefit from these solutions across various platforms with their partners. More advanced solutions include recognition of voice and signatures.
Fintechs may lead innovation in the new banking sector, but traditional financial institutions have unrivaled capital and credibility. Collaboration and synergy, together with advanced solutions, will enable traditional institutions to create a long-lasting banking ecosystem together.