The digital transformation for the banking industry is as powerful as the Industrial Revolution was for manufacturing. Today’s financial services landscape is now divided into two critical areas: traditional institutions and fintech applications.
The differences between the two approaches are massive, but each one has one point of common ground. Their goal is to improve the customer experience within the banking industry.
Fintech Sets a New Customer Experience Standard
The modern banking customer is reliant on their mobile devices to accomplish daily tasks. Society’s expectations shifted toward the need to access financial information from a smartphone or tablet anywhere and at any time.
Almost 90% of banking interactions could be through mobile devices by 2022. That is why today’s firms are looking at the fintech sector for tools to help them meet the needs of tomorrow’s customers.
One of the critical additions that fintech adds to banking is artificial intelligence. The power of AI can transform customer communications in an instant. It embraces the idea of offering self-service for the industry while still creating interaction points that can lead to personalized help if needed.
How Does Fintech Elevate Communication in the Banking Industry?
Although AI seems like an option that comes straight from a science-fiction novel, it is already making positive improvements in the banking industry. According to Deltec Bank, Bahamas “Predictive analysis and chatbots are two examples of many that show the capabilities that fintech can provide.”
Customers now have access to instant mobile communications that let them accomplish the routine tasks of daily banking. That means 24/7 access is available for account management, extending service hours for the industry while making it more comfortable to structure individual finances.
This benefit helps the banking industry by providing more data on consumer activities simultaneously. The fintech sector has providers like Feedzai that can identify fraudulent activities in real-time situations for in-person and online banking. Advancements in this area can help to protect payment card information while improving back-end operations without significant cost increases.
What Fintech Hopes to Accomplish in the Future
Banking customers expect options that involve flexible communication and multiple service-point access. If these features are not available at their preferred institution, then there is a strong chance that the consumer will go to the firm that does offer them.
Implementing AI concepts or other fintech innovations is only the first step toward enhanced customer retention. There must also be an understanding of how these technologies work to encourage consumer interactions.
Self-service branches can help customers accomplish specific tasks over 13 times faster than a human teller. Some people will always prefer face-to-face interactions, but it is also necessary for banks to consider those who want more speed. Moving internal resources to other needed tasks will also make the institution more efficient.
There is going to be a place for traditional banking structures in the future. The size and scope of what customers need are what is currently up for debate. Fintech providers believe that their disruptions will create more efficiencies while helping consumers and financial institutions save money every day.
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.