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Business_news How US banks will adapt tech spend to rising digital users

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  •  US banks will focus tech spending over the next few years on improvements geared toward bolstering their digital channels to retain the influx of new digital users.
  • And we believes that the coronavirus pandemic is likely to accelerate a years-long consumer exodus from traditional banking channels to digital ones.
  • Insider Intelligence publishes hundreds of research reports, charts, and forecasts on the Banking industry with the Banking Briefing.You can learn more about subscribing here.

In our recent US Banking Tech Spend Forecastreport, Insider Intelligence showed that the coronavirus pandemic is likely to accelerate a years-long consumer exodus from traditional banking channels (such as branches and call centers) to digital ones.

Banks will focus tech spending on improvements geared toward bolstering digital channels.

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As we move past the period of banks’ initial adjustment to pandemic-related restrictions, we expect they will increasingly focus on investments in digital to sustain the larger volumes of digital banking users, alongside continued investment in essentials like cybersecurity and systems maintenance.

Here are three key areas of technology in which banks will invest in the coming years to retain the influx of new digital users:

  • Digitizing remaining branch networks. Before the pandemic, banks were already leveraging third-party solutions to make it easier for consumers to handle transactions within branch lobbies, drive-thrus, or other locations without a teller, as well as introducing mobile and IoT devices at branches to facilitate self-service. Now, banks will seek ways to digitize even more aspects of in-branch services, so as to future-proof branches against crises down the line and ensure the safety of in-branch employees.
  • Investing in conversational banking. We expect banks to ramp up investment in interactive voice response tech, digital assistants, and chatbots, in order to meet higher demand for touch-free banking among customers following the pandemic, as well as to ease pressure on call centers. To date, conversational banking through channels like smart speakers has seen slow growth due in part to consumers’ concerns over security, but health concerns will likely begin to outweigh these. Consequently, we expect banks to invest more heavily in conversational capabilities such as Alexa skills.
  • Streamlining digital user experience to retain customers. As more customers are forced to adopt digital banking during the pandemic, banks will begin to invest even more heavily in streamlining, simplifying, and reducing the chances for user or system errors in their digital banking channels in an effort to keep reluctant converts satisfied. As such, we expect particular areas of investment to be those where customers frequently experience pain points — per our Banking digital Trust study (Enterprise only) — such as accelerating loading speeds, improved navigation, enlarging text size, customizing displayed content based on usage, decluttering pages, and minimizing the steps needed to complete a transaction.

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