To make it easier for consumers to bank remotely, financial institutions are deploying new high-tech systems that help them meet growing customer demands.
Today, technology allows banks to offer consumers convenience and speed like never before. These, and other changes, are all part of a transformation currently taking place in the banking industry. Banking as we once knew it is evolving, and technology is leading the way. The process of seeing a familiar face at your local brick-and-mortar branch is slowly going away. Today's consumers are on the go, and banks are adjusting to its new environment.
According to the article, “6 Signs of a New Age of Consumer Banking,” the banking industry is in a transition to accommodate the customer's expanding needs. To make banking easier and more convenient for “on-the-go” consumers, financial institutions are adjusting their business models and processes to retain existing customers and attract new ones. Some of these changes include:
- Branch makeovers: Traditional bank branches are shrinking in size, relocating to more strategic locations, and are letting other channels such as online, mobile apps, ATMs and other technologies handle more transactional activities.
- Expanding skill sets: The traditional bank teller is broadening their skill sets to simultaneously provide multiple services. Once exclusively focused on serving customers, bank reps are becoming multi-taskers who use customer-facing technology to also sell products and services.
- Increasing mobile app activity: There's no doubt mobile banking is here to stay. Only now, mobile apps are giving customers more options to do more things from their smartphones and other mobile devices.
- Adding security layers: Today, all banks are at risk of fraud. It's the new norm. But having multiple security layers such as device reputation technology to protect customers and private banking assets can help financial institutions better manage and lower that risk.
Adapting to changing consumer trends is important for banks to keep their customers happy, remain competitive, and stay at the cutting edge of banking. When it comes to expanding platforms, the industry is essentially a moving target. While it may not be completely clear on how much technology banks need to invest in, keeping up with consumer banking trends and online behavior is one way today’s financial institutions can mitigate risk while moving their business forward.