Digital tools are helping improve financial inclusion for banks in the United States, and many customers use their mobile phones to manage their bank accounts. The number of U.S. adults who have used a mobile phone to make a payment or transfer funds in the last 12 months increased by 20 points to 54%. The rising number of FinTechs churning out innovative digital financial services also gives consumers options. Three in four U.S. consumers would switch FIs if it meant gaining access to safer, more cost-effective digital services.
Social media provides another growing source for personal financial advice, especially TikTok. More younger users are going there instead of their bank for advice on a broad range of financial wellness topics, such as the rising cost of living, the progress of their savings and the state of their budget.
This month’s “Digital-First Banking Tracker®” explores how FIs need to tailor experiences to younger digital natives looking for service beyond checking accounts and deposits and how financial institutions (FIs) are using technology to deliver customers more data by deploying data and digital platforms.
Around the Digital-First Banking Space
Top-performing FIs are where more consumers can find online banking payment options and upgraded financial monitoring features. Additionally, more of these leading U.S. banks offer spending reports, automated categorizing of transactions and personalized category labels.
Meanwhile, in Europe, withdrawing money from ATMs and bank branches is increasingly challenging for more consumers, demonstrating how more personalized services are available online rather than in person.
For more on these and other stories, visit the Tracker’s News and Trends section.
Retail Banks Must Take Digital-First Approach and Prioritize Data
Meeting customers where they are is a key to delivering personalization that matters. As retail banks around the globe head to the cloud with digital-first models, they should be eyeing an end-to-end customer journey that mitigates fraud risk and adds value.
Data will play a key role, and banks should establish a framework to collect, protect and analyze to create hyper-personalized offerings.
To see What’s Next, we spoke with Doug Brown, president at NCR, to learn more about digital-first banking.
Financial Industry Leverages Data to Deliver Personalized Experiences
Keeping up with customer expectations is an ever-present challenge for retail banks. The current demand is for a more personalized banking experience as consumers settle into a post-cookie environment. Zero- and first-party data can help deliver the kind of customer journeys that drive loyalty. Ultimately, getting the right support to the right person at the right time can help customers avoid fees or receive desired account alerts.
For a growing number of younger consumers, the right support means financial wellness tools, especially for those navigating a difficult homebuying market or the many new wealth-building solutions available.
To learn more about personalized experiences, read the Tracker’s PYMNTS Intelligence.
About the Tracker
The “Digital-First Banking Tracker®,” a collaboration with NCR, examines personalization beyond traditional banking to build financial wealth.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
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