As digitalization is shaping the future, banks must increasingly invest their efforts and resources into keeping with the latest trends in digital technologies.
In 2020, all banks will accelerate their digital transformation efforts and journeys to improve their customer’s experience and offer users a truly personalized service.
Here are 8 significant trends that you can expect from Digital Banking in the upcoming year:
1. Offering Economic Rewards
New players are offering advantages for its users to stand out from the competition. Revolut Metal Cashback and Apple Daily Cash are good examples, as they accumulate a percentage of the client’s card spendings. For every transaction made by the new Apple Card, the user will collect 2% of the spending if the transaction is made with Apple Pay and 1% of the spending for the rest of the transactions.
In the case of Revolut, it accumulates money either in fiat currencies (€, $, £…) or cryptocurrencies, so the user will be able to choose its desired currency. This advantage is now only available for Revolut Metal Cardholders, who will accumulate 0,1% of transactions made in Europe and 1% of the spendings made outside Europe.
2. Mixed Reality
Mixed Reality combines aspects of the real world with Augmented Reality, which interact together on the same screen. The most well-known example is a game that caused a sensation, making the users walk around to catch all the Pokemons, PokemonGo. The game combined localization, camera and AR.
Jumping into banking, BBVA Valora uses Mixed Reality, allowing to detect available residences in a determined area and accessing its information after clicking on it. BBVA Valora calculates the amount of money the user will have to invest or spent to buy or rent a home and provides information on which option makes more sense.
3. Customer intimacy and Personalization
The capacity to observe, catalog, analyze and interpret the actions of bank customers (while also respecting their privacy) allows the design and delivery of rich, individualized experiences that will build customer loyalty in the post-digital age, according to Accenture.
The promising domains here are the use of:
- Machine learning technology
- Artificial Intelligence
- Predictive Analytics approaches
Using these tools, it’s possible to conduct instant scoring and automatically respond to the loan application, or even offer it at the best moment, using digital channels.
4. Wearable devices
Wearables’ popularity is increasing fast, as their numbers grow from 325 million in 2016 to 830 million in 2020. Wearables purpose are infinite: they embark areas from the health industry to areas like transportation and even serve as a driver to enhance smart city implementation within the upcoming future.
For example, Near Field Communication will act as a driver of change in the upcoming future. As a business, you will be able to accept and process payments directly through your device. POS capabilities will be implemented as the norm. NFC will also allow the use of smartwatches as a way to bypass the subway or underground metro card checkpoints by swiping your wrist without spending time buying tickets.
5. Powered Personal Assistants
Banks and companies like Google and Amazon have access to a wealth of customer data. The trend of introducing personal assistants in banking services appears to exploit analytics.
By utilizing machine learning to integrate and analyze information from multiple and discrete databases, AI-powered Personal Assistants are better positioned to offer personalized products and services based on the behavior of individual clients.
This can have many advantages for users, as their payments will always be on time, the spending habits will be predicted by algorithms, Smart Loans completely dedicated to their needs will be created and overall customer satisfaction will be improved.
6. Voice Commands
The assistants work after voice commands, and the functionalities and tasks these assistants can do are exponentially growing during the upcoming year.
Siri and Google Assistant have developed money transfers by voice commands. This constitutes a change in the way the user interacts both with its bank and with its smartphone. For now, the functionality is only available for those banks that have chosen to support the service through an open API provided by Google & Apple.
7. Mobile Wallets
The ability to observe, catalog, analyze, and interpret the actions of bank customers allows the design and delivery of rich, individualized experiences that will build customer loyalty in the post-digital age. These experiences appeal extensively to Generation Z since they opt for immersive experiences that happen within one ecosystem.
8. Expanding the use of Data & Analytics
When consumers are looking for their new account, they are using a comparison tool that helps them determine which account best meets their needs. It is essential to make the use of data and advanced analytics a priority and develop a strategy that works from a strong foundation. Financial institutions that deliver customers timely, relevant, and personalized messages, however, can build lasting loyalty and significant revenue growth.
AI will also allow using face recognition technology for regulatory requirements (KYC) or virtual agents on the front-end customer service side. According to The Financial Brand, leverage advanced analytics, machine learning and contextual engagement will provide a highly personalized experience for bank users.
Technology is reshaping how people consume bank products and services. Banking experiences must be built according to users’ needs and expectations, and at KingEclient, we work on the best digital solutions to transform businesses and increase their effectiveness.
Written by KingEclient