20/20 Vision: Retail Banking Trends to Differentiate your Institution in 2020

20/20 Vision: Retail Banking Trends to Differentiate your Institution in 2020

Looking back at this transformative decade, we can all agree that the retail banking industry has experienced some revolutionary changes. New competitors and technologies have entered the market, redefining how financial institutions operate to keep customer and member attrition levels low with satisfaction high. To step up their game, financial institutions (FIs) have invested in intelligent digital capabilities and partnerships to drive meaningful engagements and long-term relationships. 

With more than 2,400 current clients served and 50 years of combined experience and all-out innovation, Alogent’s industry experts put together a list of trends that will become substantial differentiators for the banks and credit unions that adopt them. Below is our 20/20 vision for 2020.

Contextual. Providing choice and engaging at the right place and right time based on how, when and where today’s next-generation customers and members transact will deliver a superior banking experience. FIs that embrace new tools and leverage data for personalization, to understand preferences and the requirements of their customer base, along with extended schedules for ease of access, will better compete for account holder loyalty by putting a cohesive user experience at the heart of everything they do.

Frictionless and Unified. There is a clear need for financial institutions to adopt capabilities that remove friction and make banking easy. Due to the instant and seamless shopping experiences offered in the world of revolutionized physical shops and online retailers, expectations are at an all-time high - and the buck does not stop with shopping. Whether an account holder begins a transaction in one channel and continues in another, perception of high-touch and consistency of brand and experience must be the name of the game in the payments industry. 

Real-time. We are in the culture of “now” and the expectation of having “it” immediately doesn’t stop with the FI. Enhanced visibility and 24/7 accessibility through self-service platforms and tools equips account holders with better decision-making abilities, higher satisfaction, and improved liquidity when they can transact at any time, from anywhere. But, with increased access comes more opportunity for fraud, driving banks and credit unions to mitigate risk through real-time tools, powered by AI and machine learning, and to better combat counterfeit and other fraudulent items both within the branch and from remote channels. 

Tightly Integrated. Flexible platforms and modern technology stacks that enable deep core banking system integrations, along with integrations to one another, grant exceptional levels of insight, customization and scalability. With solutions that communicate seamlessly, banks and credit unions break down silos – silos of data, silos of access and silos of varied experiences. While the account holder gains a seamless and consistent UX across all channels, the FI benefits from an unprecedented level of visibility and access to big data that lends itself to information such as performance analysis by point of presentment, fraud statistics, and more. Drive higher engagement and increased levels of personalization with more access to data from tightly integrated solutions. 

Human & Digital. Seven out of ten bank and credit union executives stated in The World Branch Report 2019 that their institution’s survival depends on a physical presence. However, with digital banking undoubtedly on the rise, placing a preference on one versus the other is a dangerous game. Instead, it is in the best interest of the financial institution to highlight the strengths of the human touch, combined with digital innovations, for a perfect blend of full and self-service banking. While technology can streamline the ways banking employees operate face-to-face, the digital capabilities accommodate the evolving demands through customized services of the account holder on the go. Offerings of digital-centric convenience mixed with the irreplaceable benefits of in-person interactions for more complex banking needs are pivotal in building trust and loyalty now and well into the future.

Complacency is the biggest threat to banking in 2020 and beyond. Whether your institution serves 10 or 10-million account holders, Alogent helps you focus on your strategic initiatives to deliver contextual, frictionless, tightly integrated modern banking experiences that capitalize on the blended benefit of full- and self-service channels.