The Future Of Banking Is Digital
There’s no denying its Ovid-19 has changed our landscape. It has also signaled the significance of digital transformation and accelerated the demand for digital technologies across all businesses, but none more than financial services.
After Covid-19 struck and a lot of the world moved into remote work, the financial institutions which had access to cloud-based tools and technology were able to continue their work without interruption. People that did not fight to run their associations, maintain their workers productively and effectively, and support their customers.
Alan McIntyre, a senior managing director and head of the worldwide banking practice at Accenture, made a similar observation in a recent Forbes article. He wrote that”the banks which had invested heavily on cloud found themselves better able to handle uncertainty, pivot to a different operating model, and chart a route through the pandemic’s choppy waters.”
My experience as the chief product officer of a fintech provider confirms these findings. Among the global financial institutions we count as clients, digital transformation isn’t simply happening, but it is also accelerating. Because most of our everyday activities move online, associations are asking themselves the same question: How do we create both a frictionless experience for our clients and a collaborative experience for our workers in this new and increasingly digital world?
The answer is that the cloud.
Improving Digital Experiences
This was due in part to the tendencies of changing client expectations — consumers had become used to personalized, compact digital services from companies like Google, Amazon, and Netflix, and they wanted the same level of support from their banks and credit unions.
But actually embracing the essential technology to create such encounters has traditionally been slow at financial institutions due to a variety of factors, including heavy regulatory burden, internal resistance, legacy technology, and clunky on-premises solutions. These are some of the reasons the same Financial Brand report found that the vast majority of digital transformation initiatives may take between two and five decades.
But that was earlier Covid-19. Now, as institutions realize the requirement for robust digital experiences to enable their employees and serve their customers from anywhere, the demand for this technology is much greater than ever and it can not wait two decades.
For instance, when the majority of bank employees across the country found themselves unexpectedly working from home in March, the value of a cloud-based bank operating system became predominant. Physicians that had the right systems in place were up and running out of their home offices and dining room tables in a couple of minutes, ready to continue business without interruption and with minimal friction. This meant they were able to assist their clients through the pandemic — if it was offering the ability to digitally complete a deposit account application, move funds or take out a loan for a new car — without stepping foot in a branch.
While cloud technologies can help with immediate needs, the future is still unclear, and the endurance and endurance of cloud technology will continue to show its worth in regards to fulfilling customers’ changing needs and tastes. Financial institutions must recognize that many of the changes brought about by the pandemic, such as an increase in the usage of digital services, will probably be permanent: McKinsey reports that 75 percent of individuals using digital channels for the first time indicated that they will continue to use them if things return to”normal.” This tendency was observed across global regions and businesses, but the banking industry showed the highest proportion of digital adoption by customers.
This is because the stunt forced consumers, even people who resisted technology, to rapidly adapt. The majority of people who started using mobile apps, online services, and electronic tools have now experienced the advantages of these technologies, plus they won’t want to give up them.
An electronic transformation strategy that improves how workers interact with and serve their clients should be a key priority for most financial institutions moving forward. Tools like digital document management that provides immediate access to files and documents, digital account opening options that liberate consumers from coming to the division, and online customer portals that allow workers and clients to interact directly in a protected, electronic space while maintaining complete transparency are only some of the things which employees will need and customers will desire, both throughout the pandemic and long after.
Covid-19 has clearly demonstrated that moving into a cloud environment can’t only be part of a financial institution’s future street map; it has to be an immediate critical. The ability to serve your customers digitally from anywhere — and at any time — will be crucial to changing financial institutions for today’s digital-first world.