Digital Banking

Is Social Banking The Key To FIs Capturing Gen Z?

Persuading customers to choose one bank over another is never an easy task, and it’s only become more challenging in the saturated digital banking space. Today’s customers expect more features and support from their mobile and digital banking tools, and coming up with the right customer service and engagement has become essential for banks and FinTech firms looking to grow their user bases.

In the latest Digital Banking Tracker™, PYMNTS explores how banks are turning to partnerships and technologies like biometrics and artificial intelligence (AI) to eliminate friction, and simplify their customer service experiences.

Around the Digital Banking World

To better meet the needs of both new and existing customers, some banks are relying on partnerships that meld old banking and payment methods with newer, digital channels. China-based Bank of Beijing, for instance, recently partnered with ING for the launch of a fully digital banking brand, designed to appeal to a market of consumers already used to paying on their phones.

Another partnering bank includes Goldman Sachs, which recently teamed up with technology giant Apple to create a metal credit card tied to the user’s mobile phone. The hybrid approach allows customers to access the best of both worlds: being able to use cards at physical stores, while accessing spending insights and financial information on their mobile phones.

Other banks are looking to upgrade the way they’ve designed their mobile banking features, including U.S. Bank. To further entice younger users who are already comfortable with performing many financial tasks on their phones, the bank has crafted a completely new mobile app that uses AI to track spending and give users financial suggestions.

Payments Remain Key to Bank of the West’s Customer Service

Banks are competing on multiple fronts when it comes to customer engagement. Not only do they need to enable more complex financial transactions and decrease friction, but they need to compete with other banks. For Bank of the West, the best way to gain more mobile banking customers may be for the financial institution (FI) to stop thinking like a bank, according to Hisham Salama, executive vice president and head of digital channels for the bank.

In a recent interview with PYMNTS, Salama discussed Bank of the West’s mobile strategy, changing customer behavior and why payments have become truly central to a customer’s financial experience. To learn more, visit the Tracker’s feature story.

Deep Dive: How Banks can Overcome Challenges and Provide Seamless Digital Experiences

For the banks that want to rise above the rest, it’s not enough to simply provide a mobile app with all the expected banking features attached. Banks must also reduce friction within the app experience so that it’s all but nonexistent. However, when dealing with regulatory restrictions, security requirements and changing customer behaviors, that can be stressful and cost-inducing for FIs.

To find out how FIs are meeting these challenges to best provide their users with a seamless customer experience, visit the Tracker’s Deep Dive.

About the Tracker

The Digital Banking Tracker, done in collaboration with Feedzai, brings the latest news, research and expert commentary from the FinTech and consumer banking space. It also includes a provider directory featuring the rankings of more than 250 companies serving or powering the digital banking sector.

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Latest Insights: 

Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. The July 2019 Pay Advances: The Gig Economy’s New Normal, a PYMNTS and Mastercard collaboration, examines pay advances – full or partial payments received before an ad hoc job is completed – including how gig workers currently use them and their potential for future adoption.

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