Deltec Bank, Bahamas says Future of Banking Must have a Robust Focus on Technology Evolution

Deltec Bank, Bahamas says Future of Banking Must have a Robust Focus on Technology Evolution

Deltec Bank, Bahamas
Deltec Bank, Bahamas says Future of Banking Must have a Robust Focus on Technology Evolution

The rise of challenger banks in the United States and parts of Europe are causing the banking industry to evaluate its future. These newcomers are customer-focused, user-friendly, and comfortable to operate. That means companies like T-Mobile and Goldman Sachs can implement services outside of the traditional banking model through fintech. 

Modern cryptocurrency and fintech opportunities allow banking industry challengers to specialize in areas that can be underserved by the more prominent institutions. That issue creates a dilemma for the traditional bank. When customers transfer an account, they typically move everything from the old institution to the new one.

Losing one customer means losing everything that the consumer provides to the institution.

58% of consumers state that they prefer to work with local or territorial banking providers. The preponderance of banking customers like this approach because they say it offers them access to a personalized experience with better customer service.

How Can the Big Banks Compete in the Future?

If a majority of today’s banking industry customers favor using the localized approach, then that means 42% of consumers want to work with the large, national-level banks in the industry.

According to Deltec Bank, Bahamas- “Customers aspire to work with a comprehensive institution because it provides them with a better digital experience or additional online capabilities.” When one looks at the possibilities of cryptocurrency and fintech in that light, then large corporations may have a competitive edge over the neighborhood institution.

If the smaller banks and credit unions do not continue to advance digitally, then their challenger status ceases. That means the institutions that are willing to take risks, manage their assets intelligently, and concentrate on research and development are going to see the most progress in the future of the banking industry.

Personalization Is Still a Problem for the Banking Industry

D3 Banking Technology worked with The Harris Poll to speak with Americans about how likely they would be to recommend their financial institution to family members and friends. The questionnaire determined that 74% of this population group would offer a positive evaluation of their bank or credit union, with 82% citing the customer service experiences they receive as the reason for their testimonial.

That same survey discovered that over 60% of customers want their bank to anticipate their economic needs.

These results indicate that a framework to handle massive data loads from consumer interactions will be necessary for the future. It is the only way for the information consumers provide to their institutions becomes useful.

Even as cryptocurrency options expand and digital transformation protocols become more frequent in the financial industry, the preference remains on the local bank or credit union. Most consumers want to work with a bank that is right down the street. Instead of a name that they see on the computer that feels meaningless, the neighborhood institution becomes a place of refuge for their assets.

Customers move to the challenger banks when their local institutions cannot provide the right service level or offer access to desirable digital features. Then people move to the national names in the banking industry when that option also fails.

These are the reasons why the future of banking must have a robust focus on technology evolution. The banks or credit unions that can provide service automation, need anticipation, and straightforward access to money in the customer’s preferred format will be the institutions that see the most business opportunities.

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 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.

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Company Name: Deltec International Group
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Phone: 242 302 4100
Country: Bahamas