The use of digital technologies has increasingly become the norm in all areas of life. Banking is no exception; in our industry, technology has always been a critical driver of change. The recent COVID-19 pandemic accelerated that change, as the face-to-face, in-branch experience on which community banks had depended became disrupted. Countless new technologies entered the FinTech market as bankers searched for ways to continue business remotely. Now, bankers and bank customers alike have moved beyond making remote and mobile banking possible, to making it a true source of customer satisfaction.
As digital natives bring new expectations to their banking experience, community banks are feeling the pressure to keep up despite limited resources. However, as we like to say at ICBB, technology and innovation are no longer options, but necessities to stay competitive in today’s marketplace. Implementing digital technologies can help your community bank reach more customers, improve service to existing customers, increase operational efficiency, and more. Here are a few options that may be right for your bank.
Digital wallets reduce the use of cash.
On average, American adults carry less cash than ever—about a third of adults under 50 reported that they make no purchases with cash in a typical week. Around 23% of adults 50 and older reported the same thing. One way for your community bank to accommodate this preference is to offer a digital wallet.
Digital wallets are an increasingly popular option for storing and managing payment information, and for making payments from a smartphone at participating retailers. They can store information on a user’s credit and debit card, loyalty programs, and coupons. Major tech companies like Google and Apple offer digital wallets within their devices, and major banks are beginning to offer the service as well. Offering a digital wallet among your products could be a way to personalize the customer experience and set your institution apart from other community banks.
Artificial intelligence personalizes the customer experience.
As a community bank, you may pride yourself on the human aspect of your customer experience—as well you should. As many large banks move toward automation, their customers may find it difficult to get help from a real person. However, employing artificial intelligence in a few key ways can help personalize and improve your customers’ experience.
AI programs can collect and analyze customer data that will help you identify patterns and understand your customers’ needs and preferences. For example, you may notice that a particular customer is frequently requesting a certain service. Then, your staff can proactively market that service to customers with similar needs and characteristics. In a similar way, AI can detect patterns to prevent fraud and financial crimes.
At ICBB, we believe that while some things never change, like your institution’s care for its customers and community, it’s important to adapt. These digital technologies, and others, can personalize your customers’ experience and set your institution apart in the community banking space. Having a primary correspondent partner who is committed to protecting, promoting, and supporting the community banking model is a great first step to navigating changing times and new technologies. Learn more about us at icbb.bank, or reach out to us at email@example.com.