Recent research from FICO shows that 88% of bank customers say experience is as important as or more important than products and services. A third of customers point to an easy-to-use website or app as the single most important aspect of a great customer experience. Those findings mean that online, mobile and app-based solutions play a pivotal role in community banks’ strategy.
Good customer experience relies on bringing the right banking technology to the right customers. Community banks are not one-size-fits-all, and their technology stacks are as distinct as the communities they serve. But no matter where you live, digital transformation continues to be a critical element of bank modernization.
Younger, digitally native generations have high expectations. They want to conduct many transactions on a single platform: saving, managing subscriptions, buying stock, making wealth decisions and more. Right now, those transactions are leaving community banks’ platforms as customers go elsewhere, but technology exists today to respond. Community banks can build these capabilities; they simply need to act on this potential.
Now is the time for community banks to start evaluating their strategic plans. Does your plan address this more integrated, digital future? If not, revisit it, because the competitive landscape requires it.
Consider the shifts in geographic community due to technology’s blurring lines. Big banks and big tech are permeating rural areas, partly enabled by the digital solutions they provide. For both small businesses and consumers, app-based payments, digital investment solutions and more are flowing through other financial entities simply because technology enables them to do so.
Today’s customers seek a simple experience. It’s not about the products you offer but the functionality you enable. So, take time to evaluate your strategic plan, run your SWOT analysis, define where you are and where you need to be in your digital transformation journey, and determine next steps.
But don’t do it alone. Reach out to peers via ICBA Community (community.icba.org) and at in-person and digital events to capture best practices and learn from those who have walked the path before you. Participate in ICBA Education sessions addressing technologies like stablecoin and artificial intelligence.
Also consider joining us for our newly launched Innovation Academy (icba.org/innovationacademy), which addresses the current competitive environment, third-party risk management, effective partner selection and contracting, ways to implement new innovative solutions, and technology safety and security for all engaged. (Email me at [email protected] to learn more.)
In short, embrace experiential innovation and know that ICBA is here to help. Whether through advocacy, education or innovation, when strategic initiatives require thoughtful solutions, we stand ready to support your vision in creating a stellar customer experience.
