INTRODUCTION
Many factors and considerations are the driving forces behind the trends in retail banking trends for 2023. Banks are in the middle of evaluating and improving their business models, finding ways to improve customer engagement, and introducing measures to adopt the best digital strategies. Here are some of the most prevalent improvements and changes in retail banking you can hope to see in the years to come.
Trends in Retail Banking: 2023
Improving The Digital User Experience: The rising demands of customers mean that banks have to create seamless digital experiences that can be easily utilized by their customers. The COVID-19 pandemic has made banks acknowledge that digital platforms made for the convenience of the user must be optimized. To achieve this, retail banks are aiming to improve the digital process on an end-to-end basis, including digital account opening and the online loan application process. Further, retail banks will be looking for ways to create personalized experiences for customers and efficient online support that can handle a variety of customer interactions.
Retail banks will also be expected to provide their services in a manner that is integrated across platforms. Doing so allows customers to access and manage their accounts from several devices such as webpages and mobile applications. Retail banks will also upgrade and maintain robust security to tackle the rising cases of account fraud. This is because building customer trust will be an important aspect of staying competitive in the years to come.
Making Use of Data and Analytics: In recent years, optimizing customer data has become the focus for many businesses, and the retail banking sector will be no different. Customer insights can go a long way in helping retail banks retain customers by assisting in the creation of personalized content that targets a customer’s needs. Retail banks also have the option of using this data to create market strategies that are aimed at attracting new customers. To effectively leverage customer data, banks will look to advanced analytics and artificial intelligence software that excel at gathering and interpreting customer data. Being able to transform these insights into actionable guidelines for employees across various departments can help retail banks improve their mode of customer engagement and customer support.
Increased Third-Party Tech Relations: A trend in retail banking that one can expect to see is the affiliation of banks with third-party tech companies. Developing and integrating the digital products and structures discussed that have been discussed so far requires highly skilled and experienced workers. Moreover, finding skilled employees to seamlessly utilize and maintain these products is another challenge of extreme import that retail banks are facing. For this reason, one can expect to see an increase in the number of retail banks that will collaborate with financial tech companies and other third-party companies to fulfill their needs.
Adapting To Digital Models: Mobile and digital payments have increasingly become the norm in today’s market. As a result, retail banks will be looking to match these services or at the very least, allow customers a similar amount of convenience and user flexibility. To make this feasible, retail banks will be looking to create integrated money movement capabilities, digital wallets, and contactless payments. Offering customers these services make it easier for customers to engage in activities such as mobile and digital payments.
Increase in ESG-Led Banking: The benefits of conducting business operations and policy with a focus on ESG (Environment, Social, and Governance) can greatly benefit retail banks. It can help banks improve their reputation, attract new customers, and help create a positive impact through the changes it makes. Therefore, it would not be surprising to see an increased ESG focus from retail banks in the years to come.
CONCLUSION
As can be seen, trends in retail banking will be largely driven by organizational changes caused by the implementation of digitization. Retail banks will be aiming to create seamless digital platforms that allow customers to access their services with ease and convenience. Further, retail banks will be focused on using customer data and analysis to create personalized communication and attract the right target audience. Retail banks are also looking to make their services complement mobile and digital payments by offering features such as movement capabilities, digital wallets, and contactless payments. To make these digital solutions possible, we will likely see banks engage the services of third-party fintech companies that possess the skill and expertise required to bring these changes to the fore.