Since 2019, millennials have surpassed Baby Boomers as the largest portion of the adult population in the world. While a good chunk of today’s workers can be considered digital natives, it can’t be denied that people from all generations have learned to appreciate the conveniences brought about by mobile and digital banking channels. Given the marked shift in market demographics, what does the current generation of retail banking customers expect from their financial services providers?
Delivering Personalized Retail Banking Services by Using Digital Innovations
According to a recent survey conducted by leading solutions provider Oracle, many young adult consumers are expecting their banks to provide them with the capability to make more personally relevant choices when it comes to managing their finances. These tech-savvy customers are often quick to adopt the latest solutions offered by their banks, and they are willing to share their details to banking apps and digital platforms in exchange for a highly personalized banking experience.
In the past, offering customizable services to the general public proved to be a logistical nightmare for many financial institutions, as many lacked the capability to process personalized products in a timely manner. However, this is now changing through the use of digital systems, automation, and other new technologies. These days, forward-looking financial organizations are typically equipped with a digital core banking system that allows the institution to offer modular or tailor-made products and services that everyday customers can mix and match to suit their particular needs.
In addition to having the choice to make more nuanced financial decisions, many of today’s working adults also want to see a number of qualities in the digital channels provided by their respective banks. These include the following:
Simplicity and Ease of Use
Most of today’s retail consumers want a straightforward banking application that will immediately show them the functions that they want to use. The app or web platform offered by a bank should feature an intuitive design that will enable users to find the tools or features they need with the least amount of steps to get there. A design that’s hinged on simplicity will prove to be an asset to an app or website that’s being widely utilized by digital natives and digital immigrants alike.
A design that’s easy on the eyes should help an app or website make a positive first impression on users. The aesthetic elements present on the bank’s different platforms should set the mood for a positive experience every time a consumer uses a banking app or website. This can even encourage consumers to use the app or website over alternative means of managing their finances.
Every touchpoint that a consumer uses to access their bank’s services should be primed to provide a satisfying experience. Instead of feeling like they’re interacting with a standalone mobile banking application, consumers should be able to understand that their mobile and online banking channels make up an ecosystem of financial solutions offered by their bank. In case a customer finds it much easier to carry out their financial transactions on a laptop or by visiting the local branch of their bank, for example, they can expect all these contact points to retain the information that they have supplied using other channels within the bank’s ecosystem of products.
Earning a customer’s trust can be more challenging for banks now because there are fewer chances to initiate face-to-face interactions and most financial transactions are carried out through digital channels like mobile apps and websites. To get around this, banks can improve the level of transparency that they provide their customers through digital channels. They can be more forthcoming with what their customers can expect if they use a particular service, for example. Providing clear, consistent, and honest instructions can help banks offer a more trustworthy experience to their customers.
The Post-Pandemic Retail Banking Experience
The pandemic had a significant impact on the widespread adoption of online banking among retail consumers. The difficulty of accessing banks and the risk posed by exchanging cash, for example, have encouraged more traditional consumers to maximize the alternative avenues that their financial services providers have made available to them so that they can manage their money. At the same time, many retail banks accelerated the adoption of digital technology and the improvement of their digital banking channels so that they can continue to offer their services to their customers. Now that normalcy is returning in many parts of the world, experts are of the opinion that digital banking will continue to be the norm in the coming years.
It’s practical for banks, then, to continue the development of their digital and mobile products and services. Overhauling a financial organization’s digital channels is a solid step in preparing the establishment to meet the changing needs of a more tech-savvy generation of retail banking customers. Upgrading their systems now will also enable financial institutions to immediately leverage new and emerging technologies that are giving other banks a competitive advantage.