The “digital first wave” that started well before the pandemic is turning out to be table stakes for financial institutions. With consumers preferring digital channels to perform more and more banking operations, banks are forced to reshape their business model to extend a superior banking experience to online and mobile channels.
The casualties amid this disruption may be the traditional, legacy banks. As Fast Company reports, McKinsey estimates that legacy financial brands will see profits decline 20% to 60% by 2025. PWC predicts that by 2030, we could see the end of traditional legacy banks altogether. Hence, legacy banks need to quickly transform their digital platform landscape and embrace solutions to deliver a personalized omnichannel digital experience, keep customers engaged, drive new prospects, and clock a growth in sales.
With that, the million dollar question becomes - How can financial brands young and old better align with consumer needs and create a more personalized, curated, and meaningful digital experience for each customer?
Today, the way consumers shop financial services has changed forever, making financial institutions rethink how to personalize engagement and the customer journey across multiple devices and platforms. A unified omnichannel experience will drive greater customer acquisition, service, and retention. In order to enable such a transcending experience, it is essential to implement a digital platform that is agile, componentized, and integrated with a heterogenous technology stack. Financial brands need to think "outside the box" about everything "in the box" – marketing, sales, product development, and service strategy.
Picture a perfectly layered tiramisu – individual ingredients are great, but the magic occurs only when you bring in all the elements in the right proportions, built on the perfect base. Similarly, a customer experience strategy needs to be the perfect alignment of all channels and businesses.
The evolution of cloud-based marketing and engagement tools has made executing customer experience strategies a lot easier today. With these tools, banks and wealth management companies can personalize, automate, and manage marketing content and assets driven by the customer journey and the value gained through all engagement phases; move from reactive engagement to proactive, customer-centric engagement across all channels; and build a world-class, frictionless experience that delights customers. Organizations need to leverage data to better understand and refine the transitional journey of customers and drive measurable business value and ROI for the firm. They also should focus on fostering a world-class digital team by establishing digital centers of excellence and best-of- breed tools and processes shared across lines of business.