FI’s Digital Transformation More Real Than Ever
I don’t usually talk in absolutes, but there are two things that are absolutely clear about the effects of the Covid-19 pandemic. First, there will be more demand for online financial services, from a broader spectrum of consumers (by a large margin) than earlier projected growth rates led us to believe. Second, this mass migration to online services is uncovering several weaknesses in the FI space which will require the industry to step back and consider new ways to meet the demand of their customers.
Before the global pandemic, demand for online financial services was already high in almost every region of the world. According to a March 2020 eMarketer’s report, “The State Of Digital Banking” adoption rate for FI services was at 64% among Internet users globally (only 46% for US). That’s pretty good already. Now add a crisis that literally closes the doors of many FIs, leaving consumers only one method of transacting, online, and that growth goes even higher. Even reluctant consumers that would prefer to walk into their local branch are being forced online. After a few months in this environment, customers may never step foot in an FI again.
While the digital transformation push is into its second decade, this new surge in customers, especially new customers, is putting the need for complete and intelligent transformation on the fast track. A recent article by PYMNTS.com states the following:
Some banks have not upgraded their core banking infrastructures since their first digital shifts, however. Forty-three percent of U.S. banks still rely on COBOL IT systems — which are based on the COBOL programming language that originated in 1959 — for their core banking needs.
Ouch! It sounds like some FIs are behind. The article also expresses the following:
Consumers are attracted to digital banking platforms that can anticipate or fulfill their needs almost instantly,… crafting digital transformations with this type of strategy at the core can lead to deeper, more satisfying relationships with customers.
Never has understanding the customer been more important. Those FIs that get it right now will reap the benefits for years to come. The key to understanding is to be able to translate digital interactions into human behaviors like intent, fraud, frustration, satisfaction, hesitation, confidence, etc. Neuro-ID has developed the technology that does that translation.
Neuro-ID’s Friction Index Dashboard and next-generation behavior analytics are developed by scientists to translate digital customer behavior into actionable intelligence – illuminating fraud, risk and friction, helping reduce lost revenue and increase customer satisfaction.
Want to know more, contact me or visit www.neuro-id.com.
