Digital Banking is an Evolution, Not a Revolution
Over the past decade, we’ve experienced a fundamental shift in banking from primarily branch-based service to digital-first self-service. Credit union members and bank customers have developed an increasing preference for online and mobile options. The convenience of checking a balance, depositing a check and transferring funds became a necessity during the pandemic, reshaping our banking expectations.
With 71% of consumers today preferring to manage their accounts online or via a mobile app according to the American Bankers Association, there is clearly no going back to a branch-led model. But it’s not enough to simply add digital-first options. Credit unions and banks need to keep pace with new innovations to meet ever changing expectations.
While many credit unions and banks have long ago adopted digital banking technologies, they need to constantly evaluate their effectiveness and consider upgrades or replacements as legacy solutions begin to lag.
The mere ability to apply for a loan online or open an account was impressive a decade ago. Today consumers demand quick and easy applications with fast decisioning. Let’s face it, we live in the era of instant gratification. The closer we get to immediate, the better.
To put numbers behind this, 60% of consumers will give up on opening an account online or digitally applying for a loan at the 5 minute mark. That’s a high abandonment rate and way too much money left on the table. Worse yet, most go to another financial institution — perhaps a competitor.
It is no longer enough to simply offer mobile account opening and digital lending. Credit unions and banks need to quickly guide consumers and convert new opportunities. For most financial institutions, this requires new technologies that leverage automation, simplify consumer effort and unambiguously drive to a decision — with speed and ease.
As with any great evolution, success requires realignment as the landscape shifts. Digital banking is no longer a mere convenience. It is a powerful growth engine, particularly for those credit unions and banks that optimize the digital experience for account opening to grow deposits and digital lending to increase revenue. Throw in effective cross-selling and you have a growth trifecta.
ATTUNE’s engagement banking platform delivers Unified Banking Experiences that accelerate growth while deepening loyalty. Let us assess how we can help your financial institution maximize growth, both short- and long-term. www.ATTUNE.com
