During the past decade, the role that branches play in banking has become less transactional and more focused financial support, guidance and advice. Financial institutions are now more invested in their customers’ financial wellbeing.
In recent months, community banks and credit unions have been innovating to give customers what they really need. As physically accessing branches was no longer an option, banks moved to digitize their services. This move not only gave access to existing customers, but it also has the potential to create greater access for people in all financial situations. Digitized banking has opened doors for tens of millions of Americas and given them something that they previously would not have had – financial empowerment. The digitization of banking has led to greater access to financial guidance and a more inclusive banking experience for all.
In a recent, The New World of Banking and Fintech webinar titled “6 Bold Predictions for the New World of Banking and Fintech”, Ryan Caldwell, Founder and CEO at MX, spoke about the transition to increased access to banking and how what was once “reserved for kings” will be open to everyone in the future.
As debt and unemployment rates increase there is a need for more empathy and access to banking products that will make a difference to people’s lives. People are not as nervous when it comes to engaging with automated financial advisors – not least because the cost of the advice is no longer a barrier for them.
In The New World of Banking and Fintech webinar titled “Humanizing Money How 2020 Will Change the Money Experience, For Good”, Yemi Rose, Founder and CEO at OfColor, said: “You have segments of the population where hard times are a way of life and we shouldn’t need a global pandemic to trigger empathy for those customers…I believe the situation has been urgent for decades…We need to focus on our large customers and we also need to focus on our small customers or they will never become large customers.”
Yemi Rose continued to discuss the importance of humanizing digital banking to achieve real customization. “We’re in a situation today where technology can allow us to really really micro-target for different needs. If you’re not going small and wide right now, you are ripe for disruptive technology.”
Traditionally, customers with more disposable income had greater access to banking services. In recent times, banking has become more inclusive. The Covid-19 pandemic and the resulting digitization of banking has opened access to these essential services. Digitization has created a financial tide to democratize financial advice. But, do customers know about the available products and services?
Through digitization, everyone, irrespective of their financial situation, can obtain better financial guidance and attain financial wellbeing. Digital banking is a more open method of banking and helps people of all financial circumstances to access support.
Digital banking makes money work better for customers. For example, they can receive notifications or receive alerts about their spending. It can help customers to have better awareness and consciousness of their habits and budgets. Digital banking lends itself to relevant, timely communication with customers around their financial health.
Covid-19 and the resulting technological innovation and digitization of banking have enabled financial institutions to serve society – and not just a portion of it. It has facilitated a society where there is a more inclusive banking system with greater access granted to all customers, irrespective of their financial status.
For more insights, connect with Sarah Martin, CEO at Pulsate, on LinkedIn here.