4 ways to improve banking customer experience with digital innovation

Matt Williamson
Publication Date
24 June 2021

4 ways to improve banking customer experience with digital innovation

No matter where your financial institution operates, customers now expect a personalized, secure, and convenient experience via digital channels. Consider these findings:

  • In 2020, mobile banking use increased from an average of 63% of U.S. customers in 2019 to 72% in 2020.
  • In the EU, the coronavirus has driven a reported 72% rise in the use of fintech apps.
  • APAC customers may be even more digitally sophisticated, with 63% expressing willingness to switch from traditional banks to neobanks and challenger banks in the next five years.
  • Nearly all African banks (96%) regard digital transformation as one of the most important factors in their growth strategy.

Once you have a clear and compelling digital banking strategy – and you’ve readied your business model – the real fun begins: exploring banking innovation and how to digitize products and services to create a competitive advantage.

Here are some of the most exciting options to consider.

  1. Prime for payment innovation

During the pandemic, digital payment use surged by 150% as customers used these tools to buy everything from groceries and takeout to prescriptions and telemedicine visits. As you implement your digital banking vision, consider your customer journey and integrations you can implement to enable easier digital payment for your customers.

As you’re making digital payments accessible, also consider digital wallets, or e-wallets, as part of your omnichannel strategy. Digital wallets offer another way to give your customers ubiquitous access to their debit and credit cards, with less chance of losing the card and a decreased risk of credit card fraud.

Don’t just take it from us; US News is among numerous publications that have highlighted how mobile contactless payments are not only quicker but also provide multilayered security that plastic cards can’t match. (Another plus: the environmental benefit of fewer plastic cards.)

  1. Get personal with “safe to spend”

When customers use digital banking to manage their finances, you have a unique opportunity to strengthen your relationship by helping them achieve their financial goals with personalized services. One of the best ways is by leveraging artificial intelligence/machine learning (AI/ML).

Integrating AI/ML gives digital tools the ability to track how much money is coming in and how much is being spent. With those insights, you can help customers make sound financial decisions. For example, you can proactively inform customers what is safe to spend vs. when they should skip spending their money and instead save it. Beyond that, AI/ML can also help mitigate fraud risk by proactively identifying and alerting on suspicious activity. Mobiquity has helped large banks successfully integrate this kind of PFM (personal finance management) technology into their existing programs.

  1. Find your voice

What if you could improve customer experience by allowing the use of voice to launch your app and conduct banking activity? Or interact with a chatbot on your website to reduce their wait time? This would be especially helpful for customers who want to quickly get support without needing to listen to a phone IVR (Interactive Voice Response) or taking the time (and potential risk) to visit a branch. As just one example, see how Fatema, a Gartner award-winning, in-app smart chat assistant, is helping customers at ila Bank.

  1. Make digital banking more rewarding

In this new age of digital adoption post-COVID, companies are having to get creative to establish and strengthen customer loyalty. In fact, in the US, Harvard Business Review Analytic Services reported that 72% of survey respondents say optimizing customer loyalty is a top-five priority of senior management at their organization. In Singapore, 81% of consumers said they will choose to spend with a retailer that has a loyalty program over one that doesn’t. And in Europe, Visa has worked on an initiative that allows cardholders access to relevant and personalized offers to spend and save at the retailers they prefer.

With customers increasingly expecting rewards in exchange for their loyalty, banks have a stake in this game. Consider how you could reward customers for choosing online banking with you. After all, digital banking is a win for them, with around-the-clock access and convenience. It’s also a win for you, thanks to potentially higher satisfaction and lower cost to serve.

Ready, set, innovate

Whether you’re starting from scratch or enhancing an existing program, consider downloading our playbook, “A Global Guide to Digital Banking: Your Playbook for Creating Digital Experiences Customers Love.” It walks you through key steps to creating a digital experiences that engage and empower customers.

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

Matt Williamson

As an experienced turnaround manager and entrepreneur, Matt Williamson is Vice President of Global Financial Services, Mobiquity. Matt joined Mobiquity during COVID-19 to support the company’s growth trajectory and is a specialist in M&A, technology, product integration, strategy, and delivery. Matt’s career demonstrates his international expertise and ability to rise to a diverse array of challenges. Beginning his career as a fraud investigator at Thomas Cook and Travelex, Matt went on to run Travelex’s Global Business Payments Tech for EMEA and won a Sibos innovation of the year for the Geo Payments Network while occupying the role of UK Product Head. Following this, Matt was appointed by Citi Bank as its Senior Vice President of Technology for Treasury Trade Services and EMEA Head of Commercial Prepaid Card Technology. Matt has also been instrumental in the merger of Misys into Finastra, leading a successful hyper-growth strategy as the Global Head of Payments and Cash. In addition, Matt has worked with Fintech start-ups such as CoBa as Global Head of Fintech, and an international payment scale-up, FORM3, as its Director of Customer Success within its Enterprise and Partnership division to build its brand on a global basis. Matt is a thought leader on financial inclusion, the bank of the future, cashless societies, the digital banking experience, sustainability, fraud and security of payments.

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