Like COVID-19 has done with just about everything in life, it is now changing the way customers interact with their banks
possibly forever. Customers are starting to want more than just a “cool” mobile app and hollow promises from their banks to support the community they serve. In fact, 44% of consumers say their purchasing decisions will be negatively impacted when they see banks focused on maximizing profits during this difficult time. However, some banks aren’t quite buying this and are beginning to question if these changes will really last as the pandemic dispels? Below, we’ve highlighted consumer-focused shifts in banking and where they’re taking the future of finances.
Banking the Responsible Way
Product and profit maximization focus in banking has started to take a back seat to providing a consumer-centric banking experience. Responsible banking is becoming more important than ever as customers don’t want or need financial products anymore if those products can’t actually do something positive for them. While the global pandemic did send a surge of panic that left some banks scrambling to prioritize their profits over their growth, it is now time to take a step back and reestablish long-term investments in top-notch customer experience. A strong and trusted relationship with customers is pivotal to banks competing with, or embracing fintech solutions, but this doesn’t happen overnight. Banks will need to begin putting a long-term plan in place right now that puts intuitive and compelling customer experiences at the forefront of what they do.
Banking Is Beginning to Fragment
Banking services such as payments, savings, and loans are beginning to fragment as Fintechs create a more consumer-centric way of handling them. According to recently collected 2020 statistics, 47% of financial service companies considering a third-party collaborator wanted to partner with a fintech firm. As of 2021, Western New York’s fastest-growing bank, Lake Shore Savings Bank partnered with Verivend so as to combine their banking capabilities with a robust and secure cloud-based payment platform that immediately helps Lake Shore’s business banking customers. Even the majority of banking business executives at 84% believe cloud technology will play a transformative role throughout banking. Thanks to open banking, the data around consumers are much more accessible, making it possible for both Verivend and Lake Shore Savings to design a digitally financial environment geared toward consumers in a more intelligent way. Banks like Lake Shore Savings have already secured a partnership with Verivend and here’s what’s in it for them.
- Increased customer retention.
- New customers attracted.
- Additional revenue opportunities.
The Future is Fintech
So, whether banks believe in the future of fintech or not, it’s clear consumers do and they’re more than willing to immerse themselves in the future of experience. In order to not only catch up but compete, the banking sector must step up to the challenge of solving customer problems in a customer-focused way. So, open the door to the future by receiving exclusive access to our platform’s banking-centric features by signing up through verivend.com/banking.