Fast-evolving consumer expectations present one of the biggest challenges facing the financial services industry today. Consumers expect their financial institutions to deliver the same intuitive and dynamic digital experiences[1] that tech giants like Amazon and Uber offer. They are looking for hyper-personalized experiences that simplify their financial lives and help them make sound decisions.
A recent survey of banking customers found that technology brands have established stronger emotional connections with consumers than their banks.
Source: Accelerating digital transformation in banking[2]
To replicate the digital success of their tech counterparts, banks should consider focusing on:
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Removing friction from the overall banking experience
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Supporting users through their financial decision-making process
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Understanding and anticipating users’ changing financial needs
1. Simplify consumers’ financial lives by removing friction from engagements
Uber is a really good example of an app removing friction from the engagement process by streamlining every step of the digital (and physical) journey their customers take. They addressed everything from the uncertainty of finding a cab, to giving the driver directions, sharing their ETA with friends, and paying for the ride.
Similarly, simplifying and removing friction from the overall financial management process will be key to creating an emotional connection between banks and their consumers. Digital banking consumers should be able to take care of all or most of their banking needs through their digital app of choice — open an account, apply for a loan, make a deposit remotely, and deactivate or reactivate a lost ATM or credit card.
