Financial institutions are prioritizing personalization and innovation to attract and retain account holders in an increasingly competitive environment. However, according to a J.D. Power study, only 38% of U.S. consumers recall receiving personalized financial advice from their bank—and among these, only about half say it completely met their needs.
Why the disconnect? Today’s consumers increasingly rely on digital banking rather than branches. In fact, online and mobile banking is no longer a channel of convenience used to supplement branch visits. For many, it has become the only touchpoint with their financial institution.
As a result, banks and credit unions are finding it harder to understand and truly partner with their customers and members. The lack of personal interaction means institutions have lost a valuable feedback loop based on consistent face to-face interaction, during which a consultative relationship can be established and nurtured.
Relationships built over many years have been replaced with digital interactions that—while providing a comprehensive collection of features a given user may need—are far from personalized in a way that supports users through their unique financial journey.
Finding a better way to connect with users
The opportunity is clear. Financial institutions that can tailor the digital banking experience despite minimal in-person interaction will set themselves apart. Building a consultative relationship with consumers, one that supports their financial literacy, savings goals and debt avoidance, for example, can shift the relationship from purely reactive and transactional to one that proactively addresses consumers’ needs. In turn, such a relationship fosters brand loyalty in a highly competitive climate.
The challenge for many financial institutions is that today’s digital banking solutions are often built primarily to support the performance of transactions, such as viewing an account balance, paying a bill…
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