Digital banking has been on the rise for many years and does not appear to be slowing down. Should traditional branches look to become digital only? While research shows that customers still find the value in going to a physical branch for certain features, there are many benefits for not only the customer but also the bank by going digital. Read more below and discover more digital banking solutions at the 2nd World Digital Banking Summit.
• Increase in engagement with your business
Traditional branches are open limited hours but digital banking allows your customers 24/7 access, giving them the opportunity to interact with you more. According to a study done by Deloitte Insights, over 17 countries, 61% of respondents said they visited a physical branch less than once a month while 22% said they visited their mobile banking app 10 or more times per month.
Another way digital banking is increasing engagement is through machine learning. By data gathered from the user and their interactions within a banking app, banks are able to send personalised next action prompts. These prompts encourage users to utilise services or products they currently are not which leads to more engagement and possibly more revenue for your business.
• More revenue
Traditional banks have a lot of overhead cost, from the property to employee salaries and far beyond. By going digital only or scaling back on your physical branches, you can save some of the overhead cost, which can translate to higher interest rates for your customers, more revenue for your business or both.
• Reduces Errors
Mistakes happen every day but when they happen within a bank, it can be detrimental and cause a PR nightmare. Most banks are in a phase of digital and manual activities but by mixing these processes, a margin of error remains. By implementing more digital banking activities and machine learning human errors can be reduced, which save your business money and create a stronger customer loyalty.
• Exceptional Growth Potential
While the future of traditional branches may be in jeopardy, the future of digital banking is looking very promising. According to the latest Global Market Insights, Inc. report, the global digital banking market is set to reach $9 trillion by 2024. It is a very competitive market but with plenty of growth opportunities.
• Easier to adapt to the latest innovations
Adapting to the latest technology can be overwhelming for traditional branches. You have to update your software and train your staff on how to use them, which costs time and money. Digital banks have an advantage when implementing new technology because it is usually less time consuming and you can alert your customers of the update through the app or website. Traditional banks would have to use even more time and money marketing the new product or service they are offering.
If you hold a key position within your organization within the digital banking industry then this year's 2nd World Digital Banking Summit is a must attend. For more information about the summit and to learn about the speakers, download your free brochure here!