How Financial Institutions Can Compete Digitally (And Win)
Consumers are increasingly turning to financial technology providers for their banking. Here’s how banks and credit unions can win them back.
Online banks and financial technology providers often have a leg up on other financial institutions when it comes to pivoting quickly and evolving on pace with digital growth. And younger banking consumers are taking note, reporting that they are Ìý with their money than traditional banks and credit unions.
That doesn’t mean that financial institutions can’t keep up, though. Younger banking clients value experience first and foremost. When banks and credit unions move past dated digital infrastructure, they can integrate modern offerings that empower accountholders to make data- informed financial decisions, securing long-term loyalty.
Read on for three ways a bank or credit union of any size can level up to get on par with any digital competitor.
1. Move to automated consumer engagement
When a financial institution is a step or two behind its customers’ needs, it may end up losing business. For example, unless your customer comes to you requesting an auto loan or high-yield savings account,
you may not know they’re in the market for one and risk losing them to another financial provider.
On the other hand, banks and credit unions that move to a more proactive, personalized approach see a In order to anticipate needs and offer preemptive advice, financial institutions must have a clear look at customer data.
º£½ÇÆƽâ°æ gives financial institutions this visibility, with custom recommendations to match. Enteract incorporates account processing, enterprise content management, loan origination and onboarding
into one centralized solution. This enables banks and credit unions to streamline the customer journey at every step, deepening relationships by offering the right solutions, right when accountholders need them.
Banks and credit unions that
move to a more proactive,
personalized approach see aÌý
10% increase
in annual revenue
Ìý
2. Use AI and data analytics
Artificial intelligence is rapidly becoming integrated into every facet of consumers’ lives, and many are feeling very comfortable with it. 70% of young and middle-aged adults use AI a few times each week, according to internal º£½ÇÆƽâ°æ research.
When it comes to AI in the context of digital banking, respondents prefer uses that offer financial insights and education. Large language models can quickly dig deep into customers’ financial data and offer personalized advice or assistance, freeing up human bankers to do more complex tasks.
That’s where Experience Digital from º£½ÇÆƽâ°æ comes in. The digital banking platform was designed with AI integrations in mind. Financial institutions can use it to deepen client relationships by understanding customers’ needs and recommending the appropriate solutions, then cross-selling to drive new sources of revenue.
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20%Ìý
Ìý
Ìý
of account
applications come in after hours
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3. Turn digital channels into acquisition and retention engines
Digital banking effectively eliminated the Monday through Friday, 9-to-5 business operation model. Consumers don’t want to wait until the next business day to ask a question, apply for a loan or open a new account. They want to do it now, whether ‘now’ means Tuesday at 2 a.m. or Saturday afternoon.
Financial technology providers and online-only banks are available around the clock, a major advantage when you consider that 20% of account applications come in after hours, according to º£½ÇÆƽâ°æ internal data. Banks and credit unions that want to keep up must be available all the time, too.
With º£½ÇÆƽâ°æ, financial institutions can take advantage of digital acquisition tools that work 24/7 on your behalf. Market to new or existing customers using , automate the loan decisioning
and account opening processes, and onboard them instantly — even supplying digital cards so they can access their money right away with Digital Issuance.
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ways financial institutions
can competecan
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ÌýÌýÌýÌýÌýÌýÌýÌýÌý Ìý 1.Ìý ÌýOffer hyperpersonalized recommendations
ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý2.ÌýLeverage AI to streamline processes
ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý3. ÌýAutomate account opening
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Move forward with Experience Digital
Whether consumers use their digital banking platform to move money, check balances or open a new account, they are looking for accessibility, ease of use and a customized experience. But they don’t need to turn
to a financial technology provider to get that — not when banks or credit unions have access to an integrated ecosystem of digital banking products and solutions.
A tech-forward banking platform is critical to competing with digital- first financial institutions. Experience Digital from º£½ÇÆƽâ°æ can help banks and credit unions get there with nearly limitless options for custom innovation and third-party app integrations that make a better experience for financial institutions and their customers.
