Mickey Goldwasser, VP of Marketing and Chief of Staff, Payrailz
Looking back on 2020, it is clear that no one can predict the future. Plenty of plans made for 2020 were quickly scrapped and remade to try and adapt to the new and different world we found ourselves living in. While 2021 will hopefully bring a restoration of some sense of normalcy, it is critical that people be prepared for any situation.
While the events of 2020 pushed people toward digital channels in droves, whatever happens in 2021, most of these people are likely to stay there. Once people experience the convenience and ease of what digital banking or payments services can provide, they don’t often go back.
Especially as the risks of the pandemic continue, digital is likely to be the primary channel for how financial institutions interact with their customers in the new year.
Because of this, banks and credit unions will have a greater emphasis on experience, as that will now be their biggest differentiator from their competition. In recent research from BAI
, more than 60% of Millennials and Gen Z members are willing to switch their accounts to a new bank or credit union if it meant a better digital experience. Banks and credit unions need to personalize and tailor their digital experience, so it fits individuals’ unique needs.
In the case of digital payment solutions, they must be smart and simple. Users in digital channels are usually doing so to save time, so if the experience is not simple or efficient, it is not likely to succeed. Users also expect their digital experience to meet or exceed the level of service they receive in-branch. Using AI, financial institutions can easily personalize experiences to not only make managing finances easier, but to demonstrate they care about each customer’s unique needs.
While digital has traditionally been the primary channel for Millennials and Gen Z, customers of all generations now use these channels to manage their finances. AI can help simplify the digital experience for those generations that are not as technologically savvy. Where they once depended on the branch, older generations can bank and make payments with ease, with the right digital solutions in place.