In 2021, about 65% of Americans used digital to manage their banking needs. It is imperative for banks and financial companies to meet the changing consumer behaviors and needs to keep up with the new customer expectations brought on by digital adoption.
What are the key drivers of digital banking?
We identified 5 specific capabilities and digital banking best practices that are foundational to digitally transform a bank.
Mobile-first & front-end banking experiences
Mobile and the proliferation of new front-end touchpoints are the topmost layers of the digital IT stack. Banks and financial services are designing digital experiences with mobile as their primary touchpoint to deliver highly personalized customer experiences—connecting enterprises with consumers in the moments that matter and delivering experiences that scale to business processes.
APIs and Microservices
An open API framework is the bedrock that powers digital experiences and makes true omnichannel strategy a reality. APIs can play a critical role in digital business transformation by helping banks go to market faster.
Microservices, however, enable banks to adopt a decentralized approach to software development, wherein each service can be deployed, rebuilt, and managed independently without compromising the integrity of the application.
Data-aware and intelligent platforms
Today, banking transformation occurs with the confluence of cloud, big data analytics, AI, and machine learning, which unlocks deeper experiences and automates financial processes to improve the speed at which financial products and services are delivered and consumed by the connected consumer. Digital banking platforms help create new process efficiencies and new systems of intelligence through the use of big data, actionable analytics, and machine learning capabilities.
The cloud imperative
The Cloud is powering significant banking industry transformation. To drive maximum value from the cloud it has to be seen as much more than just virtualized infrastructure. Cloud technology and services can offer greater availability, elasticity, and security. The innovative power of new cloud technologies can also support new business models, such as banking as a service. And cloud creates a new culture of technology services within banks, enabling them to become more agile and to operate faster.
Digital banking security table stakes
Customer experience may reign supreme, but one security breach can undo the reputation that banks have built with their customers and communities. The Federal Trade Commission received 1.4 million reports of identity theft last year. For banks, some digital security measures are non-negotiable, such as band authentication or one-time passcodes, to minimize password risk and biometric identification such as thumbprint scanning to enable secure digital banking access.
To avoid falling behind the competition, banks have to rethink how they do business and interact with their customers in the evolving digital era. Banks today need to implement effective digital CX strategies to deliver new, competitive service offerings.
To learn more about how leading Fortune 500 banking and FinServ companies accelerated their digital transformation, connect with us today.