The Rise of Digital Banking

The Rise of Digital Banking

Consumers are reportedly using more and more digital banking. As the 2017 Omni-Channel Shopper Study found, the major shift in consumer behavior will

Fintech Revolut Meets & Exceeds Its Funding Goal By Millions
Indian Yes Bank Starts Its First Fintech Accelerator
Influence Of FinTech In The Growth Of Asian Markets

Consumers are reportedly using more and more digital banking. As the 2017 Omni-Channel Shopper Study found, the major shift in consumer behavior will impact the banking sector.

The research published by Novantas, a company offering analytic advisory services and technology solutions, discovered three main changes in consumer behavior:

  1. A significant shift from branch dependence to digital preference
  2. A redefinition of the drivers of bank consideration and purchase
  3. An increase in demand for digital account opening

Going Digital

As the Novantas research made clear:

“The majority of U.S. shoppers are now in segments that either don’t use bank branches, don’t care much for branches … or both.”

Segments that placed the highest importance on branches for their checking relationship decreased in numbers in the past year, while the segments with the lowest branch attachment grew, as the study noted.

“Bottom line, as transactions start to shift away from bank branches, the emotional attachment will follow.”, as thefinancialbrand.com explained.

“And as the emotion around branch banking changes, so will the criteria for selecting a financial institution. In fact, Novantas found that the correlation between a dense branch network and the propensity to acquire a higher share of deposits has weakened significantly. Of special note, the correlation weakened the most for older age segments and higher income segments.”, reads an excerpt from the publication.

Redefining Convenience

Convenience in banking used to mean a banking branch that is situated in close proximity. However, the rise of digital technology, online and mobile banking created a new definition of convenience.

Novantas has resportedly found that the driver of “perceived convenience” start with an organization`s digital capabilities, as  thefinancialbrand.com wrote in their report.

This shift is beneficial for large financial institutions that have made investments in digital capabilities.

It is to be seen how the changing customer habits will affect the financial sector. The main question is how banks will respond to the changes.

COMMENTS

WORDPRESS: 0