Banking today is a macro-environment where customer and employee expectations are rising even faster than profits. Many banks, which have accelerated their digital transformation, removing the human touch from many interactions, are now facing the danger that customers will perceive them as commodities and seek out the lowest-cost providers rather than trusted advisors for their financial health.
COVID-19 has accelerated change in banking, and customer behavior and demands have shifted rapidly. Digital engagement during the pandemic increased—50 percent of consumers now interact with their bank through a mobile app or website at least once a week, compared with just 32 percent two years ago1. Branch transactions have significantly reduced.
All of this has forced those who have been reluctant to digitize—customers and banks alike—to embrace digital for its convenience, availability and accessibility.
Now, a year on, with customer behavior shifted, new digital-first habits established, and new ways of working adopted, things will not revert to pre-pandemic norms. The rapid uptake of digital wallets and non-cash payment over the past 12 months, for example, has resulted in new ways of paying that will remain popular well into the future as new payment paradigms emerge.
Today, banks must find more empathetic, personalized and engaging ways of operating and servicing customers.
To sustain relevance and profit, they must reconnect meaningfully with the minds, hearts and wallets of customers. They can begin by reimagining how their purpose and personality come to life in their products, services and operating models—especially their credit and payment products.