While many finance brands contend they are near completion in regard to their digital transformation strategy, a recent research report by Cornerstone remains skeptical. While COVID-19 spurred greater digital adoption by finance brands around the world, digital transformation remains elusive. As technology continues to evolve rapidly and consumers demand more from their finance brands, digital transformation isn’t a one-time event but a continuously evolving aspect of your brand’s strategy. So, where can your finance brand improve and how can you get ahead of the competition?
The ins and outs of digital transformation
By the end of 2022, only around 11% of banks and 4% of credit unions will not have launched a digital transformation strategy. While this indicates many finance brands launched their transformation strategies earlier, it doesn’t mean they are any closer to being complete, despite what they may say.
Cornerstone’s report indicated true transformation remains elusive for finance brands stating, “it’s hard to believe that, of institutions that launched a digital transformation strategy in 2021, 11% are three-quarters done and another 3% are almost done.” It continues, “That has to be the fastest “transformation” in the history of mankind.”
“ It’s hard to believe that, of institutions that launched a digital transformation strategy in 2021, 11% are three-quarters done and another 3% are almost done. -Cornerstone, 2022. ”
So, what can your finance brand do to improve your digital transformation and reap the rewards? There are three key areas your brand should be focusing on:
- Artificial intelligence (AI)
- Mobile technology
- API technology
Artificial intelligence for finance brands
While AI technology may seem like future tech that’s out of reach, it’s actually a digital technology you should be implementing today. AI technology has many benefits for your finance brand, but it’s exceptional at improving the overall customer experience.
What consumers want from AI technology:
- 32% want AI to provide timely offers
- 34% want knowledgeable customer service
- 31% want AI to help educate them further
- 24% want customised recommendations
AI technology can not only improve the customer experience but it can be incorporated into your finance brands’ operations, helping to optimise customer acquisition channels, better protect clients’ data, and improve operational efficiency. By incorporating this new technology, you can build trust and loyalty by providing better overall services, while protecting your customers’ data – it’s a win-win.
Mobile technology
Nowadays, there’s a lot your finance brand can incorporate into your mobile app. By 2024, the figure of people utilising online banking will reach 1 billion and many of them will be doing so via your finance brands app. As technology continues to improve, finance brands that think outside the box and offer their clients easier to use services and tools will come out on top.
Here are some ideas of how you can improve your mobile technology:
- Chatbots
- Embedded finance
- Inclusive finance
- Blockchain
- Personalisation
- Financial management tools
API technology
Application Program Interface (API) technology is the future of digital transformation. The ability of APIs to enable innovations means they have the power to increase a bank’s revenue by 20% when implemented. They are no longer a maybe but a must-have piece of technology.
While API technology may sound confusing, it’s quite simple. API technology enables two applications to communicate with one another seamlessly. For financial services, they enable your finance brand to link your database with other applications or programs. There are several ways APIs can help your finance brand improve its digital offerings:
- Account authentication
- Payment processing
- ATM or branch location software
- Credit score checking
- Loyalty programs
- Link services to fintech apps
Digital transformation and your finance brand
It’s important your finance brand doesn’t become overly confident when it comes to your digital transformation. Digital transformation takes time and according to Cornerstone, finance brands aren’t taking the time to make real long-term transformational changes. Look to the future and consistently work to incorporate new technologies early. This will be how your finance brand remains competitive for years to come.
