10 Statistics that Reveal Opportunities for Digitalization in Banking

Anusree Bhattacharya | March 31, 2022

10_Statistics_that
Digital transformation was already in progress when 2020 faced unforeseen challenges in the financial industry. Banks and the entire financial services adopted digitalization to survive during this unprecedented time. Although digital transformation in banking was in progress, it was easy for banks to shift their processes to digital operations during that period.

Digitalization in banking has immense benefits and presents opportunities for banks worldwide. According to a global survey conducted by Fujitsu, financial companies are the most advanced in digitalization. Currently, 83% of banks are working towards digital transformation. At the same time, 30% of banks have already achieved business outcomes after digitalization.

Therefore, looking at the current scenario, the banking industry is racing to become digitally equipped for multiple purposes. These purposes include revenue generation, future sustainability, competitiveness, and many more. According to a report by Deloitte in 2019, banks planned to invest US $9.7 billion globally to improve their digital banking capabilities.


Digital Engagement is Key to:

Banks worldwide realize how investments in digital technologies can benefit customer acquisition and satisfaction. For example, Bank of America currently receives more deposits from its customers over mobile platforms than over the counter deposits at their branches.

Investing in digital banking capabilities has assisted in improving customer satisfaction.”

Brian Moynihan, the CEO of Bank of America.

Therefore, let’s find out how digital transformation in banking will enhance digital engagement in two ways.


Optimizing Efficient Working Experience

Digital transformation in banking has improved productivity and efficiency, which are the topmost goals for banks after an intense economic fallout. Moreover, competitive pressure has triggered the need for digital transformation in banking worldwide. As a result, banking operations now look more efficient, reliable, and manageable than in the past. In addition, new ways of collaboration have helped employees transform how they used to function in banks. From handling customers to dealing with businesses, providing services, and offering products, digitalization has leveraged every level of functionality in banks across the globe.

Efficiency and organizational leverage are key concerns for banks right now.”

                                                                  Peter Hazou, Director of Business Development for Financial Services at Microsoft


Optimizing Efficient Customer Experience

Digital banking among customers isn’t a new phenomenon, but it has changed the perspective of digitalization in banking. It certainly has witnessed a rise in consumers’ use of mobile apps rather than websites for transactions. And because of this, banks are rushing to better implementation of technologies including cybersecurity, cloud, automation, and more. These technologies will enhance their services and usability among consumers.

According to the Deloitte Center for Financial Services Global Outlook Survey 2020, 71% of bank leaders worldwide have increased their budget for cybersecurity. In addition, they have even implemented 67% of cloud computing, storage, and data privacy capabilities to expand their customer base and the integrity of bank services. Banks, on the other hand, banks have spent $540 million on cybersecurity worldwide to minimize the chances of data breach.

Apart from this, during the ongoing health concerns of COVID-19, banks have contributed the most towards contactless payments since Q4 of 2020. During this unprecedented phase, Americans were skeptical about their financial situation. Most Americans do not believe in saving more, so they usually keep shifting between multiple banks, which is an expected trend post-pandemic. Despite this, four in five consumers prefer to manage their finances digitally rather than manually. According to Chase’s Digital Banking Attitudes Study, Americans (20-64 years of age) have considerably adjusted to the rising digital banking transformation. To support this fact, here are some interesting facts:

  • Majority of the customers feel they save time by managing their finances digitally
  • Nearly 70% of customers feel confident about the safety and security of making payments through digital banking
  • Mobile wallets and payment apps have also seen a significant increase in users and engagement since the beginning of the pandemic

Banks will now be more competitive for digital dominance in the future because more people are using digital platforms now.


10 Statistics on Opportunities in Digital Banking


  • Banking-as-a-Service Market forecasts that over 70% of the global population will shift to digital banking by 2026
  • The usage of mobile devices has increased by 75% by consumers for their day-to-day financial activities
  • According to the Global Digital Transformation Survey Report 2021, 78% of bank executives are satisfied with the response toward digital banking transformation in the banking sector
  • According to the Global Digital Transformation Survey Report 2021 by Fujitsu, an improvement of 60% has been recorded in customer experience and services
  • Since 2020, 40% more competitive banking services have been introduced
  • Employee satisfaction in banks increased by 15% from 2020 to 2021 due to the digitalized workforce in banks worldwide
  • According to Deloitte’s analysis, 14,000 global respondents confirmed a positive approach towards digital usage in banks
  • 78% of customers globally are now comfortable with their mobile banking services
  • Digital innovation in banking has resulted in 67% of additional feature provisions such as tax preparation, budgeting, tax filing, and more
  • Globally, 35% of better-integrated banking applications development takes place in the banking system

Statistics Say: The Rate of Digital Adoption is Encouraging

According to the stats, consumers worldwide are prepared for a higher level of digital engagement with their banks. Many consumers use their digital banking services frequently, which is a positive development. This shows online banking is not far behind. Opportunities are filling the gap in technology usage in the banking industry before and post-pandemic. A survey conducted by Deloitte in 2022 revealed that 72% of consumers are using mobile applications to access their bank’s services, and 85% of consumers are using online banking services.

Digital and technological recourses and tools are now a more significant focal point for financial institutions and banks.

We have a different segment of our customers who digitally bank with Chase. When consumers choose to bank with us, they do so because we give them options to a bank where and how they want with the help of our tech-proof and digitally enhanced services.”

Allison Beer, head of digital for Chase.

Citi sets a perfect example with its success story when it comes to digital transformation in banking. Let’s read how it enhanced its all-inclusive banking and financial services.


Citi Bank: A Case Study of Successful Digital Banking


Challenges:

  • Citi Bank needed a CRM platform to facilitate customer service processes
  • The legacy system was one reason why the bank was lagging in providing unified customer services
  • Citi Bank faced challenges in managing the rise in customer inquiries across its channels

Solutions:

  • Implemented automation to streamline workflow and business processes
  • The online portal helped the bank in creating a unified multichannel customer services
  • Digital platforms such as chats and emails helped to build multiple channels for customers to interact personally for the bank services

Outcome:

  • Faster lead tracking enables Citi Bank to control customer data in one place
  • Customer inquiries are captured through various channels with single platform tracking solutions
  • Citi Bank presently handles about 5000 – 6000 customers digitally for multiple banking services

In a nutshell, bolstering digitalization in banking and technology in the banking industry are expanding the need for certain activities worldwide. Integrating digital and technological environments will foster more businesses and customer experiences. This is of paramount significance to the customer experience.

A survey conducted by Deloitte states that currently consumers show the possibility of using more and more digital channels (both online and mobile). This is possible if banks increase security, provide more real-time resolutions, and digitally allow for more reliable and consistent banking transactions.


Frequently Asked Question


What are the main areas of digitalization in banks?

There are four main areas of digitalization in banks: Domain transformation, customer services, process transformation, and personalization.


Why is digital transformation necessary in the banking system?

The necessity of digital transformation in banks indicates operational efficiency by automating services like transactions, deposits, investments, etc. The regular banking functions should be seamless, where digital efficiency comes into play.


How can digitalization be successful in the banking industry?

Digitalization in the banking industry can be successful in the following important ways:

  • Adaptivity
  • Tech-driven approach
  • Agility

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Article | March 1, 2022

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Effective ways to humanize your brand are: Engage and interact Share videos Create blogs and posts regularly Leverage data Connect with social media influencers Millennials prefer brands that connect emotionally and focus on creating more relatable content. Use simple language, avoid using technical jargon, create content that shows care and concern towards the end-user, publish case studies, host podcasts, and create marketing videos. Generate Content for Various Campaigns There are different ways for you to use content for lead generation. You need to realize that there is no one-size-fits-for-all solution for campaign content. Depending upon the market and your business's nature, one method may be more effective than the other. Once you have figured out what people want, you need to generate content that gives them what they want. Now that you have the list of keywords, start creating gated content such as articles, infographics, videos, podcasts, e-books, white papers, reports, checklists, cheat sheets, free email guides, webinars, product demos & trials, and sales materials. Writing high-quality content is the foundation of an effective lead generation campaign. To create quality content, you need a sound content strategy and a specific buyer persona in mind. Apart from creating a solid piece of content, graphs, images, quotes, and infographics lead to a more effective campaign. According to a study, 67% of customers consider clear and detailed graphics ahead of product descriptions and ratings. The best kind of content allows readers to connect with the information added. Also, the writer should present critical information early to ensure readers get to the point before they opt-out. Investing in high-quality content will pay-off in the form of successful campaigns and more leads. Here are some of the best content ideas for lead generation. Giveaway a checklist of tools or lists of resources eBooks & Free Reports Webinars Discounts & Coupons Free Trial Quizzes Mini-Courses Free Challenges Syndication of Content B2B content syndication is when digital content such as whitepapers, blogs, and videos are re-published to a third-party website. Content syndication works excellently for lead generation for a B2B company. It will give your business and content extra exposure to increase brand visibility with minimal effort that you wouldn't typically get while just hosting it on your website. Distribution of content promotion to generate new leads from prospective customers will always remain the top priority for B2B marketers. Having unique web-page content with none to little traffic on websites is wasting your idea as no one will ever read it. To this, content syndication is the answer. A landing page provides more context for the product/service featured in your ad or social media post. As the user lands on the landing page, they need to see what they get when they sign up. A landing page should exclusively focus on one specific offer by using eye-catching imagery, action-oriented copy and a clear next step. Do's Don't Minimal copy with bullet points Add too much text Security badges Add social media handles / social media share button Free aspect added to the call-to-action button Use too many jargons Add a form or call-to-action button Add links Add multiple/ big call-to-action buttons Offer non clickable phone number No points of exit Add copyright signs Add a mobile number or click-to-call Add clients, testimonials & awards Add a free preview, screenshot images, stats, and video for demonstration. Add guest photos Add guest photos Add a form or call-to-action scrolling with you Email Marketing Email marketing has been used by B2B businesses for a while now. It is one of the powerful tools for marketing and communications. According to a survey, email marketing is the most effective online tactic for lead generation. 91% of businesses prefer email marketing for demand generation. A good lead generation strategy will have lasting benefits, such as allowing you to target your desired customers and boost brand awareness. Lastly, more lead equals more customers and, ultimately, more revenue. Create a FinTech Forum The invention of the internet has erased all the geological boundaries for doing business. Local businesses can turn into potential global competitors. Online forums have enabled people to connect online based on their likes, interests, beliefs, or preferences. You can also create an online forum or online community to interact with like-minded people who can turn into customers. These online forums are of great help for businesses. They allow both your existing and potential customers to interact and discuss; while helping you trouble-shoot flaws or errors. Virtual Event - Webinars /Podcasts / Live-streaming / Guest Posts The coronavirus outbreak has changed how the world works and will work for the foreseeable future. Many companies have had to postpone or cancel their events. Lead generation is essential for generating revenue. Hosting online events such as webinars, podcasts, live-streaming, guest posts, etc. can help you build a pipeline for new leads. Organizing virtual events can offer benefits such as; Increased attendees No need to travel or make expensive hotel bookings Multilingual options can allow for simultaneous translation or subtitles while overcoming the language barrier and opening the event for global audiences. The number of attendees is limitless in an online event Easier to collect feedback and make new connections Apart from the benefits mentioned above, virtual events have added advantages such as: The target audience is already there Easier to identify specific customer behaviors You can connect with a broader audience Minimized cost Shorten the sales cycle Easier to collect important information of the attendees Deliver what the audience wants to see or know Harness the power of data Leave it out in the open (let them follow you) Virtual events, if done right, can be the best way for lead generation. Utilizing Video Content 51% of marketing agencies worldwide affirmed that video content has the best Return on Investment (ROI). Video content enables people to learn faster from the tone, expression, body language, and other visual clues in the video, apart from the content itself. Video marketing can help draw the right set of the target audience, build trust and brand awareness, hold people's attention, and capture email addresses. Applying the following video marketing skills can help you use your skills to full potential for lead generation. Gate your video content Strategically insert your CTA Make use of video on landing pages Leverage video testimonial Make use of video case study Leverage your video across multiple social media platforms Other important things to consider are – Define Your Target Audience and Produce the Right Kind of Videos for Them Decide the Correct Length for your Video Create a Series of Live Videos Collecting and Using Your Data to Channelize Lead Generation Campaigns A well-planned and well-executed data-driven lead generation campaign should look like: Know your audience >> Plan & design your campaign >> Reach out to your target audience >> Fulfil their requirements >> Capture leads >> Qualify leads >> Nurture leads >> Follow-up >> Close Having a database with accurate and frequently updated info serves as the best source to identify qualified leads and potential customers. The idea is simple, suppose you can gather data on your ideal customer's characteristics and use analytics to generate insights to carve your buyer's persona. In that case, your database will be filled with leads who are genuinely interested in your organization's products and services. Final Thoughts Content marketing is the key to promote FinTech products on various digital platforms. Ensure that the content you publish is readable and well-researched without using much industry jargon. You must master the art of storytelling. It can address the three big stumbling blocks – credibility, trust, and education. Lastly, publish a lot. Ensure that your content is available in all forms and on all the relevant platforms to reach your target audience. Frequently Asked Questions What is content marketing, and how does it work for FinTech Market? Content marketing works by offering readers informative and useful material that provides valuable insights. When done well, it can help FinTech brands raise awareness, aid in consideration between solutions, drive engagement, and drive business growth. What is trending in the FinTech market? Artificial Intelligence (AI) and Machine Learning are the trending technologies behind the growth and development of the FinTech market. How to market a FinTech brand? 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When done well, it can help FinTech brands raise awareness, aid in consideration between solutions, drive engagement, and drive business growth." } },{ "@type": "Question", "name": "WHAT IS TRENDING IN THE FINTECH MARKET?", "acceptedAnswer": { "@type": "Answer", "text": "Artificial Intelligence (AI) and Machine Learning are the trending technologies behind the growth and development of the FinTech market." } },{ "@type": "Question", "name": "HOW TO MARKET A FINTECH BRAND?", "acceptedAnswer": { "@type": "Answer", "text": "Know your target audience & keyword Humanize your brand on social media Generate content for various campaigns Syndication of Content Email Marketing Create a FinTech forum Virtual Event - Webinars /podcasts / live-streaming / Guest Posts Utilizing video content Collecting and using your data to channelize lead generation campaigns" } }] }

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CO-OP Financial Services helps you leverage the latest technology and trends to strengthen member connections and support growth. We're inspired by our member credit unions to constantly reinvent the ways we serve the changing needs of the credit union movement. CO-OP unites innovative thinkers with deep experience in the credit union and payments industries to energize innovation and incite progressive ideas. We offer you a continually evolving portfolio of proprietary products and services that keep you at the forefront of emerging trends.

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