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by Admin
Banks and credit unions know the move toward digital is a very real transition for remaining relevant in the eyes of consumers. But with Big Tech creating continual disruption, how can your organization keep up?
“Where tech giants, like Apple or Amazon, are winning is mindset,” explained FTSI’s VP of Innovation, Brett Wooden. “They’re not playing catch up, because they evaluate their consumer-base through measurable results. They aren’t manipulating data to fit their current business models. They’re asking 'why'.”
Why are consumers purchasing certain items over others? Why are they purchasing those items at one location over the other? In general, how can financial institutions utilize consumer behavior in their strategy for the future?
Big Tech Makes Waves With AI
It’s no secret apps track us. From the LinkedIn article you just read to the conversation you had at dinner, artificial intelligence is lying stealthily in the background listening to it all. Some companies use that data to create immersive experiences, but the ones that win are the tech giants that move from immersive to supportive.
“What they’re doing right is looking beyond the transaction,” Brett said. “That’s when you truly get to know your consumers, and technology today can automate a lot of that for you. That’s why FTSI has created an app development division. Too many banks and credit unions aren’t taking advantage of this incredible technology.”
Neobanks, like Chime, offer ways for their consumers to do something as simple as text about their balance. For example, a savings and investment app known as Albert Genius lets you text their AI and ask questions like, “Can I afford this new phone?” Then, the AI can communicate back what their current balance is before and after the transaction, as well as payment plan options. That’s one feature, but it is the epitome of focusing on support for the consumer.
Brett continued, “Being able to open your mobile banking app and do nothing more than see your balance or deposit a check is outdated and past its prime. If financial institutions want to make an impact and attract growth, they need to start analyzing their consumers’ ‘why’ and focus on optimizing their current tools or creating something different.”
Changing your mindset and analyzing behavioral data are sure to help, but many organizations lack the proper resources and manpower to spend time on “creating something different”. They need to sit down and develop a digital strategy audit. Having a different lens to look through can help answer a financial institution’s biggest “what ifs”.
It also can help take some of the guesswork out of what the future landscape will look like. For example, if you wish to expand your organization into new locations, the traditional mindset often tells you to open a branch. However, auditing your branch ecosystem and technology stack can improve efficiency and streamline your consumer journey better.
As Apple, Microsoft and other tech giants launch new applications and software, it should be less about catching up and more about analyzing how their digital-first mindset differs from your own.