bankingciooutlook

Popular Omnichannel Trends Impacting Strategies in the Banking Sector

Banking CIO Outlook | Monday, February 28, 2022

Failure to mitigate risk can have a rapid and devastating impact on an institution's brand and reputation. Negative publicity, revenue loss, litigation, clients, partners, and key employees are all significant risks for financial institutions

Fremont, CA: As interactions between consumers and financial providers become more prevalent through digital channels, long-held knowledge of consumer needs held by people at banks and credit unions should be updated or reconfirmed by digitally monitoring and analyzing people's feedback.

The sales funnel for financial services is changing. In a market where digital consumer preference is increasing, research shows that digital consumers can be 60 percent of the way through the buying process and will have researched two or three competitors before proceeding to a fulfillment step with an institution. Recognizing this shift, financial institutions should rethink engagement strategies and the use of modern web technology to fully leverage the digital economy at work.

Risk Detection and Mitigation Hinge on Improve Analytics

Failure to mitigate risk can have a rapid and devastating impact on an institution's brand and reputation. Negative publicity, revenue loss, litigation, clients, partners, and key employees are all significant risks for financial institutions.

Technology, workflow management, and predictive and decision analytics must all be used to improve risk protection in a successful delivery strategy. This must happen earlier and throughout the customer journey to avoid operational and transactional, credit, and compliance risks.

However, such care is required to protect both the institution and its customers and prospects. While consumers continue to value the convenience of omnichannel access, they also value the security that comes with knowing they are transacting in a secure environment.

Automation of business rules, processes, policies, calculations, disclosures, and solution monitoring can help financial institutions improve risk management. Automated solutions enable the processing of information, insights, and knowledge for the purposes of authentication, customer identification, fraud prevention, and due diligence.

The Changing Role of the Branch Poses Omnichannel Challenges

Many customers no longer use branches as their primary channel for routine transactions and service, but the local branch is still valuable for complex transactions, advice, and problem resolution. Customers expect to be able to select between self-service, banker-assisted service, and full-service in today's omnichannel environment and be able to move seamlessly between digital and human channels.

Disciplined financial institutions will use solutions that provide a high-quality customer experience while also being flexible enough to support all touchpoints reliably in the future. People and technology are collaborating in a variety of ways, from centralized bankers to mobile bankers.

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