When the COVID-19 pandemic hit, the banking industry quickly needed new innovative solutions to provide service to customers all around the world. The impact on retail banking was tremendous: with clients demanding a fully digital experience, financial institutions had to adapt in record time.
In this article, we will take a closer look at retail banking solutions and understand how innovation has not only influenced the fintech industry, but the rest of the world.
Retail Banking Solutions: Understanding the Landscape
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The role of retail banking has essentially stayed the same throughout the years; it has always provided customers the capabilities of managing their money, gaining access to credit, depositing or withdrawing money and many more possibilities.
As a result of the COVID-19 pandemic, the banking landscape has shifted to strategically meet customers’ needs. Physically going to the bank to deposit money isn’t the only option. New retail banking solutions have allowed several innovative ways in which customers can bank online, from the security of their homes.
However, that isn’t to say customers don’t prefer going to a bank in person. Rather, customers enjoy having multiple options to choose from, and financial institutions need to have the resources to do just that.
Because of this, innovation in retail banking solutions has been critical for the success of financial institutions. It is necessary for banks to utilize omnichannel solutions to better cater to the needs of their customers.
For example, many financial institutions have begun to use automation and artificial intelligence (AI) to deliver satisfactory services. Some financial services companies have started using the joint Docusign-Intelledox solution, which ensures a smooth process of initiating a loan request with the help of AI.
Innovation is key to the success of banks in the 21st century and many new technologies provide banks with capabilities that are customer-driven. Banks recognize the importance of that, which is why retail banking solutions are becoming increasingly important to help people feel at ease in these unprecedented times.
Retail Banking Solutions: Recent Trends
Now that we have a better grasp of the landscape in retail banking, we’ll look at some of the recent trends that are driving innovative solutions in the industry.
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The use of artificial intelligence
The use of artificial intelligence is now common in almost all industries. In retail banking specifically, financial institutions use AI to improve customer experience, optimize the customer journey and better understand who they are and what they are looking for.
By using AI, financial institutions not only cut down on costs in customer service, but they can better utilize their resources elsewhere to improve customer satisfaction. For instance, for simple and mundane requests, customers can utilize AI to find what they are looking for, like how to transfer money to a different bank account. For more complex requests, the AI function can transfer the customer to a live customer service agent to meet their needs.
On both ends, customers and banks save time and resources; customers can easily find the solution to what they are looking for without wasting time waiting for a representative to help them with a simple task, and banks can use the extra resources to make improvements elsewhere.
The use of two-factor authentication and biometrics
The sudden shift to the digital realm because of the global pandemic brought concerns of fraud and cybersecurity.
To ensure customers feel safe when using their services, financial institutions have been using two-factor authentication and biometrics. This retail banking solution is commonly seen when customers log in to their account with the bank app; to verify identity and ensure that it is the right person logging into the account, banks may use fingerprint or face ID to prevent fraud.
The use of voice-activated banking
PwC found that 52% of call center time is spent on basic requests. This mismanaged use of time results in a loss of productivity and resources.
With the use of voice-activated services, customers can find solutions to their requests without needing to wait for a customer representative to get back to them. By 2023, Juniper Solutions predicts that 8 billion people will be using voice technology.
Voice-activated banking can be simple requests, such as finding out the account’s balance or making an appointment in person. Undoubtedly, this capability will better manage resources, increasing productivity and providing a better customer experience.
As a result, financial institutions can take advantage of these retail banking solutions, and provide a better experience for customers.
The 5 Startups Creating Innovative Retail Banking Solutions
Aspiration offers retail banking solutions and investing services that enable customers to spend and save their money in ways that protect the planet.
Jupiter builds savings technology and is a provider of digital retail banking services to help users track their expenses and save money.
Minna Technologies is an EBA authorized fintech partner that helps retail banks deliver a powerful customer experience. Minna’s solution enables retail banks to future-proof their bank with subscription management.
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Strands builds retail banking solutions that allow banks to offer a more personalized experience to their customers. Strands creates customizable digital money management software for financial institutions worldwide and empowers people to be smarter with their money.
Sonect is a location-based matchmaking platform connecting those users who want to withdraw cash, with those who want to deposit it.
Retail Banking Solutions: A Conclusion
As the world of banking continues to evolve, one thing for certain is that customers bank with financial institutions that can meet their needs and adapt to the changing landscape. To stay ahead of the competition, it is important for banks to recognize that, and utilize retail banking solutions that are customer-driven and innovative.
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