5 tips for building your digital banking vision

Topics
Mobile
Author
Mobiquity Marketing
Publication Date
27 July 2022

5 tips for building your digital banking vision

For several years, the digital revolution has been gaining in popularity among consumers. The COVID-19 pandemic accelerated this adoption by permanently altering the way consumers engage with businesses. Consumers have turned to technology solutions to help them fulfill their needs in a safe and convenient way. In some ways, smartphones have become the remote control consumers use to engage – at the bank, grocery store, restaurant – you name the task, and consumers can probably initiate or even complete it with their smartphone. This has changed how people go about their day. But how have these changes in consumer behavior altered the way you think about banking? With virtually every business exploring or pursuing digital transformation, how will banks pivot to acclimate to this “new normal”?

Digital banking drives customer loyalty

In a recent Mobiquity survey, we found that digital tools are a key driver that can make or break a customer’s loyalty to their bank. We discovered the following insights about digital banking that offer a preview into the future of consumer behavior when it comes to conducting banking activities:

Digital banking with mobile apps has surged over the past 12 months:

  • Gen Z reports a 58% increase
  • Millennials report a 59% increase
  • Gen X reports a 47% increase
  • Baby boomers report a 37+% increase 

Additionally, digital tools in particular are critical to maintaining customer loyalty:

  • 40% of consumers say they are likely to switch accounts to get better digital tools

Finally, switching accounts has never been easier:

  • 48% of consumers agree that switching banks is easier than it used to be

So how can you get started or enhance your existing digital banking strategy? First, you should start by creating your vision, which will set the foundation for your program and provide a launching point for all future digital banking products or experiences that you implement. Whether you are looking to improve your existing digital experience, thinking about how to make your current web or mobile experience more accessible and human centric, or researching partners to build a digital banking experience from scratch, this blog offers best practices for creating a successful digital experience starting with how to build your vision for digital banking. 

Let’s get started by examining 5 tips for creating your digital banking vision.

5 tips for building your digital banking vision

  1. Consider your position in the market

    Every company has its own unique personality. Your bank is no different. Think about the value proposition that you bring to your customers. How is it different from your competition? (Hint: Your back office operations are not a market differentiator!) Then consider how you’ll incorporate that throughout your experience via your digital design, with your personnel, and even in your marketing and advertising. Now is the time to strengthen your brand promise and be really explicit about who you are – and who you are not.

  2. Throw away your customer personas, journeys, and algorithms

    The personas that you knew pre-COVID have evolved. For example, 43% of people in a recent survey said the way they bank has changed due to COVID-19.1 In addition, they report a shift to online shopping has produced a 57% fall in cash usage and a 34% increase in contactless payments. These changes showcase a much broader and immediate shift in consumer behaviors that ultimately impact how they pay for items and make banking and financial decisions. What are you doing to ensure that your bank is supporting these changes? Financial institutions that want to create meaningful solutions for their customers should re-evaluate their customer personas and ensure every digital program or initiative is laser focused on their needs.

  3. Deprioritize everything you can and then prioritize the rest

    Businesses around the world are being tasked to do more with less. Leaders need to look at their list of wants and needs and decide what can be deprioritized so that they can focus on initiatives that will have the most impact. Need proof digital is where to prioritize? A CNBC article cited a 200% jump in new mobile banking registrations in April 2020, with mobile banking traffic rising 85%.2 With stats like this, updating or creating a mobile app experience that meets customer expectations should be high on your list.

  4. Create your North Star

    One approach that works particularly well in helping prepare for your success is to create a North Star. In order for your program to truly take flight, you need a guidepost for your goals. Having a North Star strategy ensures that everything you do ties back to those goals. In addition, the North Star enables you to measure and track your program via an operational dashboard and tangible KPIs.

  5. Build your roadmap

Once you have set the foundation, created your North Star strategy, and aligned on your vision, you’ll need to craft your digital roadmap leveraging the knowledge you’ve gained. Think about the tactical, tangible steps you need to implement to achieve your vision. Do you need a mobile app to keep up with the demand for mobile banking? Or maybe you need to refresh your online portal to be more customer friendly? Whatever it is, start to build a roadmap to identify the steps, resources, and stakeholders you need to be successful. 

Now you’ve built your vision – what’s next?

If digitally transforming your bank is something you’re investing in this year, consider downloading our playbook, “A Global Guide to Digital Banking: Your Playbook for Creating Digital Experiences Customers Love.” This playbook walks you through the key steps to creating a digital banking experience that your customers will appreciate, increasing their loyalty and giving them the tools they need to self-service whenever and wherever they want to. Whether you are starting from scratch or enhancing your existing digital programs, this playbook offers insights into how to keep the digital momentum going during and post-pandemic.

Your brand is your currency

Remember, your brand has meaning and as you evolve by creating digital products and experiences, you’ll want to also expand your brand. This will be important as new neobanks and challenger banks disrupt the space and competition to retain customer loyalty becomes fierce.

Looking to learn more about digital banking loyalty trends? 

Download our infographic now to get insights on how consumers are using digital tools and what would make them switch banks.

Ready to get started with your digital banking strategy? Let’s talk.

Resources

  1. https://www.ey.com/en_us/banking-capital-markets/four-ways-covid-19-is-reshaping-consumerbanking-behavior 
  2. https://www.cnbc.com/2020/05/27/coronavirus-crisis-mobile-banking-surge-is-a-shift-likely-to-stick.html 

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