As customer expectations, technology, and competition continue to evolve, banks and other financial services organizations are searching for new ways to deliver products and services more cost-effectively – and with the same or higher levels of customer service.
Major drivers of change in banking todayThe pace of change in the financial services industry is continuing to accelerate. The forces driving these changes are many and diverse, but it can be helpful to think of them in four major categories:
- Changing customer expectations. As consumers become accustomed to having 24/7 account access and simplified retail and business interactions, customer habits and behaviors are shifting away from traditional methods of using their banks’ services and venues. This shift has been accompanied by customers’ increasing comfort levels with self-service online information searches, financial transactions, and problem resolution.
- New technology. New technologies – such as mobile payments, mobile check capture, mobile account notifications, and electronic signatures and receipts – are creating opportunities for enhanced customer experiences. Beyond customer-facing solutions, technology is making equally rapid advances in areas such as workflow automation, document automation, blockchain ledgers, solution integration, and advanced artificial intelligence.
- Talent, training, and staffing challenges. Changes in bank employees’ career expectations and personal preferences are affecting how banks attract and retain talent. As baby boomers retire, the new generations of employees entering the workforce have different employment expectations, might lack an understanding of traditional banking, are not interested in outdated operating practices, and are looking for career mobility.
- Competitive pressures. Innovation and economic pressures are increasing – both from within the industry (with service and reputation advances by large banks) and from nonbank sources such as payment processors, financial technology businesses, and giant retail organizations.