Digital Banking in 2021: Trends & Customer Engagement Tips

When Covid-19 emerged, mobile consumer trends reached new heights. Covid-19 has caused unprecedented disruption to the global economy, with the trendline dropping as a result of the increased uncertainty. This upheaval has provided an opportunity for a large number of businesses, particularly financial institutions, to enhance their digital adoption of products and services that were previously believed to be mostly offline. As a result of the widespread availability of smartphones and simple data connectivity, technologically aware customers have come to have distinct expectations of their financial institutions.

Banking and Financial Technology (Fintech) (Downloads of Banking and Fintech Apps across various regions)

The global crisis brought on by the Covid-19 pandemic has had a significant impact on customer financial behaviour. As a result, Fintech and banking apps have experienced significant growth in Q2, 2020 when compared to Q1 2020. According to the most recent Mobile Consumption Trends Report, the banking, financial services, and insurance industries had a global increase in downloads of mobile applications of 20.28 percent in the last year.

This industry’s downloads grew at a respectable 43.67 percent rate in the second quarter of this year, while global growth in Daily Active Users in the banking, financial services, and insurance industry increased by 5.96 percent in the second quarter of this year compared to the first quarter.

Meanwhile, the number of Daily Active Users in India, Southeast Asia, and Oceania decreased by -8.33 percent, -4.09 percent, and -4.09 percent, respectively.

The Influence of the Pandemic on Banking

The global financial crisis brought on by the Covid-19 outbreak had a significant impact on the financial behaviour of customers:

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The use of contactless payment methods such as digital wallets has displaced the use of cash and conventional cards.
Online banking apps, which are owned and operated by banks, have become increasingly popular for making payments for everyday expenses and utilities.
Payment aggregators, which brought together diverse types of transactions on a single platform, became increasingly popular.
Pandemic
Even today, with the economy attempting to regain its pace and new banks opening their doors, clients are still hesitant about visiting a physical bank branch and prefer to conduct more errands online. As a result, there has been an increase in the significant reliance on technology and mobile devices for all transactions.

While these figures are unlikely to change in the remaining four months of 2020, they have given the mobile economy a whole new dimension, with people increasingly reliant on technology to get them through these difficult times.

Banking for the Digitally Connected Consumer

Banks are modernising their infrastructure in order to better serve their clients wherever they may be. Despite the fact that most banks still have physical branches, consumers are being urged to do financial transactions using their mobile phones or through the bank’s website. As a result, banks are being pushed to provide a superior digital experience through mobile apps by streamlining financial transactions.

through seamless onboarding experiences, simplified transactions such as remittances, the push of contactless payments, the distribution of tailored messaging, and so on.

In addition to these efforts, financial institutions must have a robust omnichannel banking strategy in order to engage customers at the appropriate touchpoint for transaction completion. What is the significance of having an omnichannel strategy? Before making a purchase, the average consumer switches between two or three screens. This demonstrates how critical it is for brands to be present across all channels in order to provide a consistent experience to all users. This allows one to move seamlessly from your mobile app to your website to push notifications to social media while experiencing the same branding and messaging throughout in a coordinated manner.

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Companies that employ omnichannel methods retain an average of 89 percent of their customers, compared to a retention rate of 33 percent for businesses that do not employ omnichannel tactics.

How Can Banks Improve Customer Engagement Through the Use of Omnichannel Channels?

Use Automation Tools – Personalization plays a significant role in the game of customer engagement, and automation aids in the seamless delivery of this experience to the customer. Remove manual processes and time-consuming operations from your business and instead use a customer interaction solution.
Make Intelligent Recommendations- Employ artificial intelligence to perform faster and more intelligent segmentation in order to precisely predict consumer expectations. According to a recent BCG poll of worldwide executives, 90 percent of marketers are now utilising artificial intelligence to improve the customer journey and provide the most rewarding experience.
Take Advantage of Data-Driven Everything- Create a 360-degree view of your customer by combining all of their data and accounting for all of their app/online behaviour in order to maximise personalised discussions with them.
Optimize for each and every channel of distribution – Encourage consumers to interact with you by sending them communications through all channels, such as SMS, push and in-app alerts, geolocation offers, and so on, to increase their engagement.
Brands must direct their efforts on ensuring that their customers have a seamless experience while dealing with them on their respective mobile phones and other devices. Starting with the onboarding experience and progressing to the development of behavior-based lifecycle campaigns, the reactivation of dormant or lost customers, and the creation of customised user journeys throughout the customer’s lifespan. The Netflix experience is sought after by customers everywhere, and it can be found in practically every other service. Automation and artificial intelligence (AI) are essential for mastering your personalisation game.

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Evangeline Christina is a Cyber Security Enthusiast, Security Blogger, Technical Editor, Certified Ethical Hacker, Author at Cyberspecial.net. Previously, he worked as a security news reporter in a reputed news agency.