Innovation: How banks can stay ahead

It’s no secret that consumers are looking for the most convenient service for them, and with such a wealth of options, banks need to be agile and ready to upgrade as behaviors shift.

 

Mobile banking apps are no longer enough. The way fintech is disrupting banking urges the industry to find new ways to engage their customers.

 

So, how can banks stay ahead? 

 

Many fintech innovations have hit the banking industry like a bomb: start-ups offered more than digital-only banking and became riddled with customer centricity. To counter this traditional banks have started embracing communication in different channels as a way to communicate their values to their customers. The goal being to meet consumers where they are — even if it’s at the street corner.

 

Poland’s Idea Bank offers customers a mobile ATM to withdraw or deposit cash. Germany’s Fidor Bank allows customers to sign-on to its bank through Facebook. Do you feel like the pressure for innovative banking is on yet?

 

According to KPMG, 43% of the bank CEOs responding to its survey admitted they were concerned about their ability to keep up with the rapid changes in the industry. They know the next generation is demanding ultra-convenient service.

 

Recently, innovative banking think-tank sessions are investigating the future usage of IoT and blockchain. The goal is to bring banking to more customers through improved customer experience. Does that mean banks should open a new department for innovation?

 

Whether or not a bank has an innovation department, it’s important to have an innovative culture that’s encouraged across hierarchy. Keeping the conversation open with the experts is more than necessary.

 

Innovation should always consider what the customers want. Offering omnichannel solutions— like SMS, voice, notifications, email, chat, IoT and chatbots — is increasingly fundamental but must be how the customer prefers to communicate. Innovation is possible — while keeping the environment secure for everyone.