Decoding the Modern Banking Customer: Trends, Needs and Expectations

by Flybits

August Issue

Hello everyone!?

This month, we delve into the complexities of the modern banking customer. From the digital native generation's demand for seamless experiences to the growing emphasis on financial wellness, we explore the key trends shaping customer behaviour. Discover how banks can adapt to these changes, build stronger customer relationships, and drive long-term growth.

Inside this issue, we will cover:

• The shifting dynamics of customer behaviour
• The imperative of personalization
• The role of technology in enhancing customer experiences
• Building trust and loyalty

This month’s highlights come from Rise, created by Barclays , Q2 , and Tech Behind FinTech .

Decoding the Modern Banking Customer: Trends, Needs, and Expectations

The banking industry is undergoing a profound transformation, driven by evolving customer expectations and technological advancements. To thrive in this new era, financial institutions must gain a deep understanding of their customers' needs, behaviours, and aspirations.

The Shifting Dynamics of Customer Behaviour

Today's banking customers are more demanding, informed, and digitally savvy than ever before. Traditional banking models that prioritize products over people are no longer sufficient. To build lasting relationships, banks must adapt to the evolving customer landscape.

• Digital Natives: Younger generations, raised in a digital age, expect seamless, omni-channel experiences. They prioritize convenience, personalization, and social responsibility.
• Financial Wellness Focus: Customers are increasingly concerned about their financial well-being and seek banks that offer guidance and support.
• Data Privacy and Security: Concerns about data privacy and security are paramount. Customers expect banks to safeguard their personal information and demonstrate transparency.

The Imperative of Personalization

To meet the expectations of today's customers, banks must embrace personalization. By leveraging data and advanced analytics, financial institutions can tailor products, services, and communications to individual needs and preferences. This requires a deep understanding of customer behaviour, including their financial goals, spending habits, and lifestyle.

• Hyper-personalization: Delivering highly customized experiences based on real-time data and customer interactions.
• Contextual Relevance: Understanding the customer's situation and offering relevant products or services at the right time.
• Omni-channel Consistency: Ensuring a seamless customer experience across all touch points.

The Role of Technology

Technology is a key enabler of personalization and customer engagement. By investing in data analytics, artificial intelligence, and cloud computing, banks can gain valuable insights into customer behaviour and preferences.

• AI-Powered Recommendations: Using AI to suggest products and services based on individual needs and preferences.
• Chatbots and Virtual Assistants: Providing 24/7 support and personalized assistance.
• Data Security and Privacy: Implementing robust measures to protect customer data.

Building Trust and Loyalty

Trust is the cornerstone of any successful banking relationship. By demonstrating transparency, empathy, and reliability, banks can build strong customer loyalty.

• Proactive Communication: Keeping customers informed about product changes, fees, and security measures.
• Exceptional Customer Service: Providing timely and efficient support through multiple channels.
• Ethical Business Practices: Adhering to high ethical standards and demonstrating social responsibility.

The Future of Banking

The banking industry is at a crossroads. By understanding the evolving needs of customers and embracing new technologies, banks can position themselves for long-term success. By prioritizing personalization, trust, and convenience, financial institutions can build deeper relationships with customers and drive growth.

Financial Use Case Spotlight ???

Financial Wellness: Gamified Budget

User’s goal is to save money for their first house, however, their spending habits are limiting them to meet their goals. One of the major spend categories being shopping for electronics.

• Trigger / Data source: User spends 80% more in the given category than their peers.?
• Data Requirement: Alert threshold & categorized spend data consent.
• Business Value:?Drive in-app engagement, building loyalty and retention by seeking end-user participation.

Notable Events & Insights ??

Navigating AI Adoption in Banking: Strategies for Success

The recent interview with Flybits CEO, Hossein Rahnama , on the Tech Behind FinTech podcast shed light on the transformative potential of AI adoption and data in today’s business landscape. Here at Flybits , we were excited to share our insights and expertise on how these powerful technologies are shaping the future of the financial industry and beyond.

The Evolution of Financial Products for the Modern Customer

A summary of Barclay’s Innovation Spotlight Series

Traditional banking is being reshaped by emerging trends and technological advancements. Customers no longer seek just basic transactions; they desire experiences that align with their lifestyles, aspirations and the moments that matter. This shift in expectations is driving banks to innovate and offer more personalized and engaging services.

Q2 Customers Now Have Access to Enhanced Digital Banking Capabilities with Flybits

To remain competitive, financial institutions must offer more meaningful and valuable digital banking capabilities and experiences for their customers. This begins with a better understanding of your customers and having the data to support this understanding.

The vast majority of financial institutions tend to operate with a ‘rear-view mirror’ view of their customers to deliver personalization in their digital channels. Looking at the past to predict the future.? This approach reveals a significant customer blind spot – an understanding of the future intent of their customers and knowing the moments that matter the most to them. Making it challenging to offer the right capabilities and truly relevant experiences.

What would you like to learn about in our next Newsletter series? What current challenges is your FI facing? Please comment below and our team will include in the next release.

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Want to learn more about data-powered user experience for your financial institution? Please feel free to book a call with the Flybits team.