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When it comes to customer experience, the major competitors of banks are not only other banks or even other fintechs, but also the tech sector at large.
Fremont, CA: Digital innovations are the way of doing business. Over the past few years, the banking industry has been compelled to embrace digital transformation due to changing customer expectations and heightened compliance demands. However, digital transformation is a multi-faceted process, not a single solution. To meet customer expectations, provide more personalized service, and be flexible with industry-specific regulations, banks need to rise above the challenges regarding digital transformation.
Let us look at some challenges banks face with digital transformation:
Tech giants such as Google, Facebook, Apple, and Amazon are making digital transformation more complex. When it comes to customer experience, the major competitors of banks are not only other banks or even other fintechs, but also the tech sector at large.
Increased Customer Expectations
Customers are expecting more from banks than just protecting their funds. They want convenience and speed to make their fast-paced lives more hustle free. Customer expectations have increased because of the tech giants who have redefined the user experience to a greater extent.
Legacy systems are a significant factor standing in the way of successful digital transformation. Such problems are prevalent within the banking industry, where some of the world's largest banks still depend on core systems built multiple years ago. In order to thrive in competition, banks must consider giving more power to the IT department. Banks need to ensure that the system updates required for digital transformation are an organizational priority.