- October 9, 2020
With some major technological advances over the last number of years. Changes in technology have had a major effect on customer demand and expectations. There has been a shift in focus for banks as they are investing in a lot of digital technologies. Customers now expect a lot of banking features to be available at the tip of their fingers.
There is usually very little need to call into a physical bank now. Mobile banking has evolved to allow consumers to perform banking tasks on the go. Not only does this reduce the costs of manual labour in brick and mortar banks but enhances customer experience in them. The wait times are reduced and applications are processed at a greater speed.
What are the main factors customers expect with more technological banking?
This has always been a major concern for anybody with banking. It is extremely important to protect your personal details in the world today. Especially with the variety of scams used in an attempt to steal credit card details. Varieties of these include phishing emails and misleading phone calls pretending to be a service provider. There are also methods to clone your bank cards and scan them in passing.
As technology has advanced, so has methods of stealing information. Instead of trying to manipulate hard-working people to give up their card information, hackers have decided they are just going to take it. Entering your card details into any unsecured or safe locations on the internet could leak your information. It is as simple as connecting to the wrong Wi-Fi as your data can be stolen if the network is unsecured.
All the risks to a customer are almost omnipotent as they always exist. Security should be the number one priority for banking in the digital world in order to protect sensitive information. It will also help build customer loyalty by proving your security is air-tight. Once the security of any digital or mobile banking is guaranteed you should focus on other features to improve the value of your product.
A rising trend in the banking industry is mobile payments. A lot of customers pay their bills via mobile banking. This usually entails setting up direct debits or standing orders on the mobile app that is supplied by the bank. Purely online banks such as Revolut has raised the bar and set an example to online banking.
Customers are beginning to expect a lot more control over their banking. They expect to be able to freeze their card and authorize payments manually. Mobile payments have also been used to split bills with friends and send money across instantaneously. Some major advantages of using digital wallets include automating your savings. You can also exchange currency on some for no cost which is extremely beneficial to people who travel regularly.
There has been a major shift in control recently in banking. Any account changes required a person working at the bank to amend it for you. Now the control is largely falling over to the account owner. Having the ability to freeze and unfreeze their cards at will and control contactless payments. Contactless payments have even moved to mobile devices such as Apple Pay and Google Wallet.
Certain physical banks allow users to access their accounts at ATMs using their cards from Apple Pay and Google Wallet. Your customers prefer to have extra control over their accounts and make their own decisions without constant supervision. This will free up the banking staff to deal with more important and personal matters such as financial plans and loan applications.
Some banks feel like passing account control to the customer compromises security. However, this is a common misconception. It is important to ensure security by having specific but fair protocols in place to ensure you protect the customers’ money and identities.
Shifting to Other Methods of Online Banking
New banking companies like Revolut and N26. These are digital wallets that offer completely digital banking services. The only physical thing about these products is the bank cards they post out to their customers. These are steadily rising in popularity offering the customer almost total account control and multiple virtual cards to ensure purchasing online is safe. They also offer free currency exchange and ATM withdrawals up to certain limits.
However, drawbacks to this type of banking include the lack of trust and contact. The majority of users are using it as a second or third option as opposed to their main banking partner(s). Your banking customers will use it for foreign travel and return to their main bank when they are home. It is also often used for transferring funds to friends or small purchases.
They are unlikely to replace a customer’s main bank which they likely use to fund these Revolut or N26 accounts. These providers can’t provide the same security appearance as a physical bank and will be unable to build the same trust with their customers.