Move Over Mobile: Non-Traditional Digital Banking Devices to Look Out For
Innovation and convenience have become synonymous with the financial services industry as consumer trends and technological developments continue to push the boundaries of creativity and feasibility. Digital banking remains a significant channel of engagement given the prevailing demand for convenience and self-service, and while online browsers, phones, and tablets remain the most common for remote transactions, non-traditional devices are increasing in popularity. As younger generations like Gen Zs and Millennials begin to look for alternative means of banking with the latest technology and the expectation of instant answers, banks and credit unions should also be looking for new ways to service these niche market segments. The ability to seamlessly and securely bank from virtually any device continues to revolutionize the way users interact with their finances and the way institutions must look at how services are offered.
Join us as we explore the adoption of these technologies across the banking landscape, giving way to a new era of a more connected and convenient digital banking experience.
Wearable smart technology has rapidly become commonplace when it comes to personal digital devices. Increasingly, smartwatches and other wearable devices can support a wide variety of day-to-day tools— health and weather tracking apps the most popular thus far, with banking not far behind. As digital banking becomes all-encompassing, financial institutions must start to think about transacting from these wearable devices, including checking account balances, or using other services by merely tapping at one’s wrist. The progression of digital solutions and remote banking technology allows for wearable smart devices to push the limits of existing banking strategies. Wearable banking is yet another avenue for banks and credit unions to allow account holders to bank at their own convenience beyond the traditional channels.
Voice Technology and Vehicle Accessibility
Voice banking from smart devices allows account holders to complete specific transactions simply by speaking a request. According to a study by Edison Research, 62% of Americans aged 18 and older already use a voice assistant through one of their devices, making it a natural fit for banking. This study also concluded that 29% of these users use voice assist capabilities in their cars. Younger generations like Gen Zs value convenience and efficiency in their highly independent, mobile lifestyle. Banking through vocal assistants in their cars allows them to save time and stay connected to their finances anywhere in the world. These ‘connected cars’ allow drivers to link their smartphone to their vehicle, making them a powerful tool when considering the next step in banking-on-the-go.
With the power that new chatbot engines such as OpenAI and other Generative AI tools bring to the market, we believe there will be an explosion in the usage of chatbots in various kinds of devices and consumers will expect digital banking queries to be access from within these devices and chatbot tools. With self-service the norm and younger generations finding it natural to text or send a message rather than place a phone call, the use of AI within online and mobile banking is now expected to ensure on-demand answers. In addition to easing customer service calls and in-branch visits, these capabilities keep users engaged with their apps and institutions. Smart bots powered by AI can even provide the convenience of real-time support to account holders, offering personalized services that draw upon a user’s banking history, spending habits, and income goals.
Virtual Reality (VR) is an interactive experience that superimposes real world imagery and computer-generated content over it. While this technology has traditionally been reserved for the gaming industry, financial institutions are taking this developed technology and applying it to their own offerings by creating a digital avatar to engage with real-world offerings, financial literacy programs, and more. Virtual reality has the potential to revolutionize the way customers and members interact with their institutions, providing an immersive and engaging experience that easily works in-tandem with current gamification efforts. With VR, banks and credit unions can seamlessly blend into the lives of account holders and guide the user journey. Furthermore, with Apple’s increased attention to VR and a likely launch of new Apple devices in this space, consumers, especially Gen Z users, would expect to see digital banking information and services in these devices. Based on history, if Apple is going to launch these VR devices, they will also likely offer 3rd party developers a range of capabilities to create applications for these devices, ultimately raising consumers’ expectations and expanding the possibilities for a new financial services market.
Where do banks and credit unions go from here?
As Gen Z enters the workforce and a greater variety of devices are adopted by the financial industry, it’s important to remember what drives the demand for these devices. Younger generations have proven themselves to be the most security-conscious demographic. In a study conducted to determine the digital banking priorities of Gen Z, 57% concluded that advanced identity and credit protection was their utmost concern, and data privacy for digital assets in immediate second. When creating financial services offered through non-traditional devices, concerns regarding security and privacy should be kept in mind when appealing to younger generations.
Although some of these technologies are more mainstream today than others, the most successful capabilities will be those that provide account holders with innovative, secure, and simple-to-use experiences.
Alogent is committed to leading the pace of innovation and ensuring your financial institution is prepared to meet tomorrow’s market demands. NXT, Alogent’s unified online, mobile, and digital banking platform, allows your bank or credit union to leverage the most modern capabilities with its open architecture and pre-built configurations to hundreds of leading capabilities and solutions. Enable a robust digital ecosystem driven by powerful, personalized capabilities and secure, intuitive conveniences.
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