Amidst the pandemic, there was a significant shift in how we handled and obtained our finances. Prior to the pandemic, traditional Banking methods were already losing favor, while Digital platforms were gradually gaining traction.

Despite a decline in popularity, physical bank branches remained an integral part of the financial routines of numerous consumers. However, with the advent of the pandemic, there was a swift and substantial shift in the balance between digital and traditional banking. According to a J.D. Power survey, in 2020, 52% of bank customers relied on or visited branches to handle their finances. Remarkably, just two years later in 2022, over 65% of U.S. bank customers were utilizing Digital Banking services, as reported by Bankrate.

What is Digital Banking

Digital banking refers to the utilization of digital technologies and platforms to provide banking services and carry out financial transactions. It encompasses a broad range of activities that empower customers to manage their finances online through electronic channels, including computer systems and mobile devices.

Digital banking offers customers the advantages of convenience, accessibility, and flexibility by enabling them to perform various financial tasks remotely, without the necessity of visiting physical bank branches.

Digital banking has transformed the banking industry by granting customers greater control over their finances, expediting transaction processing, and enabling 24/7 access to banking services. It has significantly reduced reliance on physical bank branches and revolutionized the way people interact with their banks.

The Hurdles Consumers Confront When Using Digital Banking Services

As omnichannel banking continues to evolve, it presents both challenges and opportunities, particularly for older adults. Despite an increase in digital technology usage among this age group, a study conducted by the Pew Research Center reveals that 25% of adults aged 65 or older do not use the internet, 36% lack home broadband access, and 39% do not own smartphones. Additionally, MX’s 2022 report on digital and mobile banking trends highlights that only 39% of Baby Boomers utilize a mobile app to manage their financial accounts.

Taking into account the 30% of American adults who face technology-related difficulties, coupled with economic barriers hindering technology adoption, it becomes evident that the digitization of banking poses significant challenges for numerous individuals.

Adoption & Implementation

Every change, regardless of the potential benefits it may bring, necessitates effort and adaptation. The widespread adoption and promotion of digital banking are no exceptions, although its impact varies for each individual.

Older adults, in particular, often face age-related challenges when it comes to embracing digital technology. Due to the lack of designs catering to their specific needs, new digital devices and services may seem counterintuitive, overly complex, or physically challenging to use. This ageism in digital tech can make digital banking a daunting experience for them.

Building Trust

The absence of the human element in digital banking can give rise to trust issues. According to a report by Accenture, in 2020, less than one-third of the surveyed individuals expressed a high level of trust in banks to safeguard their financial well-being. This is a decline compared to 43% who held the same level of trust just two years prior. Additionally, recent events like the failure of Silicon Valley Bank on Friday, March 10, have further contributed to the growing sense of distrust in the financial sector.

Nevertheless, there seems to be a shift in favor of digital financial services. The allure of lower fees and diminishing barriers to entry has resulted in a notable trend. According to the aforementioned Bankrate research, a significant 61% of traditional bank users expressed a moderate to high likelihood of switching to an online-only bank in the near future. This indicates a growing inclination towards embracing digital banking options.

How can banks offer excellent experiences to all customers post-pandemic?

The tangible experience of visiting a physical bank branch and engaging with a human representative may appear distant in the digital era, but it remains the predominant approach for many individuals. Older generations, in particular, often rely on the personal interaction, attention, and sense of appreciation they receive during their financial journeys.

Here are some great ways to incorporate the human touch into a great customer experience every day:

1. Remember the Benefits of Human Interaction

The fundamental need for in-person, face-to-face interaction persists among people. Incorporating human interaction into digital experiences can assist customers in adapting, learning, and establishing trust. This trust can be fostered through various means, such as employing advanced and intuitive chatbots that facilitate personalized messaging on your website or implementing features that guide digital users to real individuals capable of assisting them in resolving their issues.

It is crucial for businesses to recognize that providing attentive customer service holds greater significance in today’s world.

2. Don’t Let Up on Security

The future of digital banking is faced with numerous security challenges and risks. The widespread adoption of mobile platforms and digital payments has intensified the level of cybersecurity risks. A significant portion of the customer base transitioning to digital banking comprises older generations who may be less familiar with technology but feel the need to join younger generations in online banking to avoid being left behind.

It becomes even more crucial to enhance cybersecurity measures for these individuals. Implementing anti-phishing techniques, providing education on security practices, and enforcing mandatory two-factor authentication can contribute to safeguarding these more vulnerable users.

3. Make Accessibility a Priority.

Ensure that your digital banking service is highly accessible to individuals with varying levels of digital knowledge. Implement recommendations provided by the University of Wisconsin-Madison, such as offering captions, utilizing large font sizes, supporting screen readers and screen magnification, and optimizing web pages for fast loading. Additionally, consider providing in-person instruction to customers who require extra assistance.

The rapid transformation of finance into the digital realm may have left some customers feeling overwhelmed. However, the process of catching up with customers’ expectations is currently underway. As individuals across different generations become more familiar with mobile and online banking and recognize their benefits, banking companies can alleviate the learning curve by delivering secure and personalized banking experiences of exceptional quality. Don’t hesitate to embark on this journey promptly.

The post What You Should Know About The Future Of Digital Banking first appeared on Business d'Or.

Source