By 2028, the global digital banking market size is estimated to surpass
Great Expectations
Today's consumers have been conditioned to expect a seamless digital experience, regardless of whether they are ordering something from Amazon, banking at a $100B mega bank or dealing with their local credit union. They want convenience, and they expect a sophisticated digital banking solution that supports everything from depositing funds to making payments and managing their wealth portfolios. The message is clear: FIs need to offer not only a digital banking solution, but one that also meets the high expectations of account holders.
The good news is, as Cornerstone Advisors'
The Digital Transformation Dilemma
Digital transformation isn't just slapping functionality on a banking app and calling it a day. It means thinking about replacing legacy technologies and embracing artificial intelligence tools. And, if seeking to turn it into a revenue generating machine, it means taking advantage of transaction data flowing through the core to uncover important insights about account holders' needs and using it to optimize their digital experience.
The hard truth is that digital transformation is a strategic commitment that can be lengthy and intensive, and often requires traditional banks and credit unions to stretch beyond their comfort zone to get the right technology. FIs who look at digital banking, not as a 'cost of doing business,' but as an 'investment in future growth,' will be rewarded with satisfied account holders and new revenue streams.
Optimize for Success
Now that three in four Americans
To compete, FIs need to find a partner that takes an outside-in approach, rethinking the user experience (UX) from the account holder's perspective with data-driven insights. By creating an ecosystem that brings together the right partners, advanced technologies and capabilities, FIs can deliver a differentiated and compelling offer for retail and business users.
Best-in-Class Components
As FIs search for the right partners and technology for their digital banking transformation, we have identified several best-in-class components that FIs can use to stand out from the competition, including:
- Data-Driven Insights. FI leaders who find ways to execute on transaction data can deepen user relationships, build profitability, and institutional loyalty.
- Seamless User Experience. Now more than ever, it's important that banks and credit unions understand what UX is and how it can improve digital banking experiences for users.
- Cloud-Forward Thinking. The cloud can help FIs enhance features, security, and UX while improving uptime, performance, and quality.
Drive Revenue with Data
When defining a best-in-class digital banking experience, it's crucial to take into account the ever-changing economic landscape, which can impact account holders' spending and financial wellness. FIs that are well capitalized and good at lending will be the winners in this uncertain environment. In particular, those who can excel at cross-sell and up-sell, leveraging data and technology to find the right targets, will come out on top.
Digital banking can and should be seen as a potential revenue driver. By pairing data insights and marketing automation with a digital banking platform, FIs can target their account holders with compelling, timely, and relevant offers directly in the FI's mobile banking app, effectively transforming what once was just a cost center, into a revenue center.
BOTTOM LINE: Digital banking is mission critical to FIs. Catalyzing this platform with data insights and marketing automation creates a utopia within the banking space that can be a revenue driver for FIs, ultimately transforming the digital banking investment into a profit center.
