Digital-First Banking

Check out the entire Digital-First series:

  1. (October) “Ally Financial On Tapping AI-Powered Tools For Digital-First Banking Experience
  2. (September) Answering Phones And Online Service: The Case For The Human-Centric Digital Bank
  3. (August) PNC Says Hello To Small ‘Solution Centers’ And Goodbye To Aging Branches
  4. (July) Report: Interactive Teller Machines Give FIs New Tool In High-Tech, High-Touch Service Model
  5. (June) Interactive Teller Machines: Banking’s Next Big Thing?”

AI-Powered Tech Essential to Keep Pace With Consumer Digital Banking Expectations

  • “Most consumers are reaching for their phones or laptops first when it comes time to conduct routine financial tasks. PYMNTS data shows 70% of United States consumers at larger financial institutions (FIs) report this is the case.
  • 41% of individuals in the same report stating mobile as their preferred banking channel of choice.
  • 478 million households will count as “smart homes” by 2025 — filled with devices they will increasingly tap for banking and payments.
  • 31% of U.S. consumers now have voice-activated speakers in their homes, for example, with a rising number of these owners making use of the devices for payments.
  • 35.3 million wearable payment devices were sold in the first half of the year, indicating significant interest on the part of consumers.”

About the Tracker

The Digital-First Banking Tracker®, a PYMNTS collaboration with NCR Corporation, is your go-to monthly resource for updates on trends and changes in digital-first banking.

4 “Big Tech” Strategies Banks Need Today to Streamline Marketing Efforts

  • “Forrester predicts “as many as 20 percent of the Fortune 500 are not going to make it through 2021 whole.”
  • Banks must embrace the four ‘big tech’ trends that influence customer demands, including the growing expectation for a better banking experience.
  • Strategy 1: Big Data — Implementing a big data strategy into the institution’s overall strategy is the first step in the bank’s ability to practically access, analyze and apply insights to their customer data.
  • Strategy 2: Business Intelligence (BI) — Thinking one step further, this strategy changes the way banks process customer data, leveraging existing data and turning that data into actionable insights.
  • Strategy 3: Artificial Intelligence (AI) / Machine Learning (ML) – Deloitte reported, “86 percent of financial services AI adopters say that AI will be very or critically important to their business’s success in the next two years.”
  • Strategy 4: Social Media Visual Content — Social media has become ingrained in consumers daily lives, so it’s no surprise that harnessing the captivating power of interactive, visual content has become a part of almost every successful business — using social media-inspired visual content to broaden reach and deepen user engagement.”

New Consumer Banking Report Offers Insights Into Rapidly Evolving Customer Behaviors Since The Pandemic

“In the report, EPAM provides a detailed look at how the global pandemic has affected consumer banking relationships, and highlights key emerging themes, including:

1. Consumers are embracing the “unbundling” of financial services. While consumers aren’t looking to make a wholesale switch away from traditional banks, over a third (36%) would rather use different financial providers for different needs, including investments and cryptocurrencies, money management and personal financial management and financial education and coaching.

2. Thirst for information is growing and Gen Z is leading the charge. This year’s survey identifies opportunities that are based on education and support. Gen Z customers (60%) reported that they would like their bank to give them advice on how to manage their money and would use their bank’s physical branch more often if they were able to offer financial education, talks and interactive tools. Two out of every five are still using their banks’ physical branch at least monthly.

3. Ubiquitous banking comes of age. This year’s report shows a leap in the number of people using voice-activated personal assistants to access financial services as well as an increased use of social platforms in financial activities. Over a third of respondents said they had used a personal assistant (e.g., Alexa, Google Home, Siri) for banking in the last year.

4. Cryptocurrency: headline hype translates to genuine interest. Alternative investment platforms are now mainstream and there is a latent interest for cryptocurrency investment. Almost two fifths (38%) of all adults are willing to consider cryptocurrency, and over a third (36%) of Gen Z want their bank to offer cryptocurrency investment options.”

New Consumer Banking Report Offers Insights Into Rapidly Evolving Customer Behaviors Since The Pandemic

AI bankability: 10 ways artificial intelligence is transforming banking

“Kasisto’s major contribution is its conversational AI platform, KAI, which banks can use to build their own chatbots and virtual assistants. It’s rooted in AI reasoning and natural-language understanding and generation, which means it can handle sophisticated questions about finance management that other bank customer-service digital assistants — Bank of America’s Erica, for example — can’t.

Kasisto has so far backboned AI assistants for several prominent banking institutions (including the UAE-based digital bank Liv., DBS Bank, Standard Chartered Bank and TD). The bank’s KAI-based bot walks customers through how to make international transfers, block credit card charges and transfer you to human help when the bot hits a wall.”

AI bankability: 10 ways artificial intelligence is transforming banking