Digital behaviors were transformed and redefined as a result of the two-year pandemic. While every sector experienced its own challenges and changes, few were impacted as deeply as the banking industry. Contactless and mobile payments, and the explosion of QR-codes have become a testament to the fact that digital channels now dominate – across the globe. Research shows that 76% of Spanish banking customers used their mobile banking app at least monthly in 2021, while 34% of UK loan applicants researched their options on a smartphone. Additionally, digital (online and mobile) is now the preferred process for US home buyers to apply for mortgages. So while the death of cash has perhaps been exaggerated, it’s clear that it’s not by much.
How has the banking industry changed? In several ways, it turns out. Many banks have accelerated plans to close branches and digitize their model. In addition, there has been mounting pressure to launch ESG (environmental, social, and governance-focused) products and experiences. We’re also seeing the emergence of new players that are focusing on innovation, new business models and driving the next wave of banking transformation. Here are some notable trends:
Enter the challenger bank: Research shows that 40% of UK banking customers would consider banking with a provider that has no branches. These digital challengers are also scooping up a segment of the SMB banking market, causing traditional lenders to revisit their own models and make the necessary pivots.
A cutting-edge concept in the lending world is “inclusive financing”. Fintech – defined as computer programs and other technology used to support banking and financial services – has become one of the fastest growing areas in the finance industry by optimizing mobile technology, open access to data, AI and machine learning – all in support of underserved consumers. These digital players are growing existing customer bases and acquiring new ones that have been largely overlooked by traditional lenders.
The green wave is being ridden by Fintech. While the banking industry has seen an explosion of digital competitors, they come with their own socially relevant trademark – sustainability. These are environmental, social and governance-focused operators that cater to an increasingly values-based audience. Some of these players offer personal sustainability scores for their customers, based on where they spend their money, while others invest in 100% green companies.
The improvement of IT is another major component of a financial institution’s ability to deliver innovation. As with other industries, the customer experience has emerged as the leading determinant of success. Many banks are now focusing on IT improvement as a top digital transformation driver, which in turn affects CX.
How can banks pivot to navigate the rapidly changing financial landscape? The needs of future customers are equally as important as those of today’s banking consumers. Banks need to set their course for the next decade, and here’s where leading business process outsourcing (BPO) companies like Anexa can help banks – and brands – reimagine their futures. Essentially, we are equipped to take over as many – or as few – business processes as necessary, allowing companies to go where they need to go. We understand how certain activities like back-office services, marketing and database management can become repetitive in nature, thus draining resources and diluting focus. We’ve got a team for that. Information technology? We’ve got a team for that – all our IT is developed in-house, allowing for full customization. Customer Experience? Award-winning Anexa has built a reputation as a leader in the competitive customer service market, with exceptionally skilled, bilingual (English and Spanish) agents who are trained in the most current CX trends and can authentically represent any brand.
Let’s talk about how we can take your business forward.