How Small Banks Can Make Better Use of Technology
The digital banking revolution is not only about changing the experiences for retail and corporate clients. It also offers opportunities to improve all elements of a financial institution’s operations, from procurement to human resources and beyond. Most technologies are rolled out under one of two headings: improved customer experiences or driving efficiencies. Yet as the financial industry continues to evolve and go digital, these lines have started to gray and In some cases, new technologies can be designed to serve to deliver under both.
Here are three areas where small banks can make better use of technology:
Banking clients often have some very similar questions. “How much will I need before I retire” or “how long will it take to pay off my mortgage”. Simple online calculators have been made available, yet some investment into these tools can make them very powerful for both clients and advisors. By enabling these calculators to incorporate clients broader financial situation and consider the financial institutions available products, it can help provide answers to questions that haven’t been asked yet. Such as “how do I have more money when I retire” or “how can I pay off my mortgage faster”. Advisors and clients alike will benefit from the outputs, and it will assist with driver more deeper conversations and directive outcomes.
Product and services education happens both to clients as well as employees. As more education goes online and is delivered virtually there is an opportunity to look at developing content that is suitable for both. Simulators and informational videos, with fun activities and quizzes can be branded for external audiences, but then lead into more detailed modules for internal audiences. The added benefit is that by teaching your employees in client-focused, clear terms, you are reinforcing this as an expected behaviour across your financial institution.
Since their debut on the market, aggregation apps have promoted placing control of finances on the individual. A solution to better manage and understand a clients ‘full financial picture’ in an increasingly fragmented marketplace, aggregation app offer significant benefits to financial institutions. By allowing customers to see all of their bank accounts and financial information in one place they can set more informed budgets, receive more relevant notifications and ultimately better plan for their financial future.
According to research, 61% of Americans are willing to share data with companies, if they get value in exchange. This is why many new technologies not just should, but need to be built with both the client and the financial institution in mind. By developing personalized value for customers, aggregator tools help banks to build a fuller picture of existing and potential clients. If the information is perceived to only be used to enable the bank to solicit their business, participation will drop off sharply. One option to consider is making it optional for customers to share their linked information with your financial institution to leverage the basic functionality. By seeing the value first, they can be encouraged to release more information.
As much as technology is helping to move the needle forward on the experience for both banking advisors and customers, both should do their due diligence when it comes to the programs they use.
Small banks with established brands hold the advantage of long-term and strong relationships with the clients and the communities they serve. By making better use of technology, they will be able to continue to grow such relationships, while meeting the changing needs of the financial marketplace. How is your bank using technology to serve both employees and clients? We’d love to hear! Share with us at firstname.lastname@example.org.