Savings is the next growth area as more people consider their options, especially the 25–35 year olds who prefer challenger banks over traditional ones. Younger people are faced with a change in the financial landscape from the previous generation and are choosing to prioritise saving and investing.
Customers are looking for agility, tailored products and accessible customer service. For banks and building societies to stay ahead of the curve and continue to develop and grow, their platforms must be able to deliver speedy, up-to-date, customer-focused solutions.
Embracing fully paperless applications
Many banks and building societies have adopted paperless applications in recent years. Investing in Open Banking for online verification has made applications significantly easier and more accessible. Our own market intelligence suggests there is a substantial drop-off rate for new customers during the application process when the customer is asked to provide paper documentation for ID processing – by as much as 50%. This means not only is there a loss in acquiring new customers, but crucially the tech is not living up to what the customer wants.
Tech-savvy savers will end up shopping elsewhere for easier online processes, and this will only continue to grow as digital natives dominate the market. Banks and building societies would be wise to step ahead and prioritise user experience to attract and retain savers.
Harnessing APIs
Consolidating financial deals through API integration enables savers to access the best deals on the market. Essentially, API services connect aggregators, platforms and current financial deals all in one place, not only offering the best deals but also generating visibility.
Integrating APIs also creates a seamless onboarding experience through embedded ID checks and fraud prevention tools, enabling banks to offer mobile banking apps and self-serve portals, which respond to the desire for customer autonomy and quick, friction-free online journeys. Customer retention can also benefit, for example, with no-code technologies like Risk Narrative, which builds analytics-based onboarding.
Looking forward
Digital transformation has potential and growth ahead if banks and building societies are willing to pivot towards what their customers want and will want in the future. The focus on user experience via seamless onboarding, Open Banking and API-driven sources will lead the way and become essential for institutions if they want to retain and compete in an increasingly non-traditional, digital financial marketplace.
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