This article was originally written in 2021 by Ruby Walia. It reflected on changes in customer behaviors and how the digital transformation addressed them. The article was updated in April 2024 with additional information by the Mobiquity team.
There has been a seismic customer shift in banking over the past decade, especially in the last five years. Online and mobile platforms are a part of the new normal customers have come to expect.
In fact, basic digitization is now a bare minimum; the best banking platforms are catering to increased demand for real innovation.
But what exactly has changed in customer preferences, and is it set in stone? Below, we’ll examine the specifics of banking’s present and future and break down what financial institutions can do to meet customer expectations moving forward.
According to a landmark 2023 American Bankers Association survey, a combined majority of customers access their accounts most often through a mobile device (48%) or computer (23%).
By contrast, branches were used most by only 9% of customers. These days, when people bank, they’re using digital interfaces to do it.
Customers are also increasingly looking for optimal performance on banking apps:
Together, these changes signal a customer shift in banking preferences.
More and more people are using digital banking technologies, and users of both fintech and traditional banking platforms expect more out of their experiences.
These digital banking trends didn’t just appear out of thin air; they’ve been in the making for the better part of two decades, kicked off by the debut of the iPhone in 2007. As a recent Business Insider retrospective on the iPhone highlights, Apple captured users’ imaginations and prepared them for an increasingly digital future.
The customer shift in banking we’re seeing today is a spiritual successor to the worldwide adoption of smartphones. Increasingly, customers have come to expect physical/digital (“phygital”) capabilities in nearly every app—and banking is no different.
The iPhone has been the definition of “sticky” over the years, but can the same be said for the customer shift in banking preferences? Analyzing the reasons these changes have occurred should indicate whether they’re likely to stick around.
Per an S&P Global Market Survey conducted both during and immediately after the height of the pandemic, a majority of people expected to use mobile banking after the pandemic:
These projections have held true, as the figures about current usage above suggest.
The immediate reasons bank customers turned to mobile applications had largely to do with public health mandates. But they’ve stayed on them for convenience, optimal customer experience, and exciting new use cases.
The closer we look at these trends, the more obvious it is that these changing customer expectations in banking are beyond sticky—they’re here to stay.
Fintech has driven innovations across the tech sphere for decades. Now, we’re also seeing traditional banks utilize technologies like generative AI in banking platforms to remove friction in everything from transactions to overall account management.
Looking ahead, some of the most impactful digital banking trends in 2024 are:
Throughout the customer journey in banking, banking app users can expect to see more of the functionality they already know and love with more profound and broader tools. Bank apps are easier to use, capable of doing more, and better for the planet.
In short, forward-thinking banks and financial institutions are taking the customer shift in banking seriously—and catering to their desire for a digital revolution.
Moving forward, the changes we’ve seen in banking customer behaviors will likely stay here. That means banks and financial institutions are responsible for prioritizing customer experience in banking and optimizing their customers’ journeys.
Here at Mobiquity, we’re committed to the future of digital banking. We help banks and financial institutions create, implement, and manage the right technologies to meet and exceed their customers’ needs—both right now and well into the future.
To learn more about the customer shift in banking, digital transformation, and how Mobiquity can help your organization stay ahead of the curve, get in touch today!
Ruby Walia is a digital and technology executive with extensive experience in the Financial Services and Media & Entertainment sectors. He is passionate about digital transformation that delivers exceptional customer experiences and commercial success. Ruby is currently a Senior Advisor to Mobiquity. Prior to joining Mobiquity, Ruby was Head of Digital Banking at HSBC, NA. and responsible for creating and implementing a digital strategy for the bank in North America. As part of that strategy, Ruby led the dramatic growth of digital customer acquisition through the implementation of new platforms and capabilities. Prior to that, Walia was Head of Mobile & Online Banking at TD Bank. In this role he lead a digital product team to execute an aggressive digitization strategy which included strategic partnership deals with fintech startups, the re-launch of the TD mobile banking application in Canada, and digital wallet initiatives in North America. Ruby has also served as the Chief Applications Officer at Dun & Bradstreet and the Chief Technology Officer for Dow Jones & Company. Additionally, he has held leadership roles at Financial Dynamics, GE/NBC Universal, and Viacom and served as an advisor to several successful startups.
Give us your information below to start the conversation.
.png?width=1110&name=Sticky%20Digital%20Banking%20Blog%20Header%20(1).png "Sticky Digital Banking Blog Header (1)")
