Changing face of the Finance Sector and the role of rapidly changing technology.
Uberized your offering yet? – Have you adapted to the changing technology Landscape & Consumer Behavior?
The tremendous advancement in technology and has placed power in the hands of consumers. Digital technology has empowered consumers in recent years – by providing unlimited access to information, demand products, and services whenever they want; the expectations have been rising. The younger generation of consumers especially is more informed and well prepared to transition through this environment. Since technology adoption is increasing, Banking and Financial Institutes to have been following this suit.
Across the world, there is an increasing shift towards enabling digital adoption for financial services. Primarily this change has been due to the growing usage of smartphones and advancements in communication with data being affordable for the public.
Digital transformation of the financial sector has already begun as we see digital giants offering financial services like PayPal, Google Pay, Apple Pay, or internet-based retail services of HSBC “First Direct”. Consumer behavior seems to be influenced by digital experiences and digital products. At the same time, providers within the industry have been forced to rethink the strategies to keep up with the tech-savvy consumers.
There has been a gradual drop of consumers visiting a branch, as per research the drop has been down from 52% to 32% monthly, the shift in banking to digital is apparent. Consumers today value remote, on-demand, services than visiting a physical branch for services. With many financial institutes providing an immediate offering, consumers expect instant credit decisioning, immediate account funding, and around-the-clock customer assistance. With growing expectations of the consumers, financial institutes need to create as many doors as possible to build a healthy relationship with the ever-changing consumer.
In the era of continuous innovations, Banks and Financial Institutions need to keep up the pace with transformation else risk survival. With the emergence of technology, multiple channels have emerged where consumers expect a smooth experience while using different channels. ENTiger delivers a cohesive experience by integrating traditional and new channels. ENTiger’s technology is designed to help Banks and Financial Institutions to focus on customer experience, meaningful conversation, and personalization.
Since the technological change is becoming rapid, banks and financial institutes need to adapt quickly and need to understand the factors dictating these new behaviors. We have identified the following factors that are affecting consumer behaviors.
With over 50% of the world’s population actively using smartphones, the usage of finance apps has been on the rise. Ease to use features of mobile apps have bought consumers and financial institute closer and are driving profound changes in relationships. Consumers use apps to pay bills, transfer funds, deposit checks, make person-to-person payments, and buy products online. In fact, according to a study by Bank of America, more than 60% of millennials use mobile apps to make person-to-person payments on a regular basis! As per experts’ prediction in the coming years, the majority will bank via a mobile app.
Understanding these sentiments, the trends towards digital is crystal clear. ENTiger has already developed mobile apps which are in use by the financial institutes for easy onboarding and managing delinquent accounts providing their Consumers the same experience as they would have in face-to-face interaction. ENTiger’s app acts as a helping hand for financial institutes for easy operation.
The apps are being used by financial institutes for early warnings, cleanup of the sales pipeline, reduction of onboarding TAT, self-onboarding, treating of individual accounts, and more. The apps are easy to use, secured with biometric security, individual user mapping to IMEI numbers, offline operation capability.
Consumers are more connected to Banks and Financial Institutions than ever before. Using mobile devices, they can research products, ask sales questions, and purchase products no matter where they are and what they are doing. New opportunities are on the rise as the consumers become more connected. ENTiger understands this and helps Banks and Financial Institutions cut through the noise and meet consumer demand by providing an omnichannel strategy for all-time availability.
The omnichannel strategy is successful only if switch between channels, devices, and brick-and-mortar stores, the transitions are seamless. ENTiger makes sure all the touchpoints in the journey are integrated and contribute to a strong seamless experience.
ENTiger makes sure consumers have flexible options when it comes to deciding between online or physical shopping thus delivering a connected buying experience. With multiple channels working harmoniously to create dynamic, textured experiences that merge digital and physical shopping.
Usage of multiple devices
With mobile accounts for 50.8% of total internet traffic in 2020 as per www.statista.com and penetration of wearable devices, consumers use multiple devices for the internet and buying products and services. Consumers switch to multiple devices during a digital journey, so it becomes important for Banks and Financial Institutions to be present on multiple devices and platforms.
ENTiger helps to interconnect these touchpoints by making Banks and Financial Institutions available to the consumer wherever and whenever they want. ENTiger enables Institutions to create personalized, contextually relevant experiences that engage consumers in the right place, at the right time, and with the right message as they move between devices. Benefits of personalization include content, related items, tailored offers and more thus enhancing customer experience.
Mobile-based retail payments can be made either in person at the PoS counter or can be done remotely via devices using a browser or mobile wallets. Consumers opt for these kinds of payments due to the ease of usage, electronic trails, and points for using a particular payment option. ENTiger has used this feature for debt collection and for money deposit into bank accounts helping consumers with critical transactions.
Customer Expectations and Retention
Digital pioneers like Amazon, Uber have raised the bar to an all-time high making consumers have a similar experience in whatever they do digitally. Due to the availability of online reviews and the exchange of communications between consumers, the expectations of consumers from the seller are to be more responsive, relevant, and targeted communication, products, and services. Consumers also want to be served in quick time else they would look for a competitor.
ENTiger offers Banks and Financial Institutions solutions to meet these expectations. Banks and Financial Institutions can onboard customers within minutes at the same time giving power to the consumer to self-service for a personalized experience. With ENTiger the institutions do not have to worry about the quality of leads in the funnel as the system intelligently removes out the bad ones with multiple tests, checking with National ID databases. Finally integrating physical and digital services to be accessible easily.
The digital age is accelerating the opportunity for Banks and Financial Institutions to truly engage with consumers across all channels. This is leading to constant shifts in the way people buy and interact with Banks and Financial Institutions. Consumers want to be treated as unique customer.
Technology is ever-evolving and is bound to impact consumer behavior. The speed of that change is getting faster and faster. The influence of technology is a powerful catalyst for change. If Banks and Financial Institutions do not update with technology, they risk being left behind and see their market share fall.