In April, lenders were focused on improving customer experience. As fintech competition continues to gain more market share, lenders are pushing back by innovating their offerings by leveraging more technology. This month, we gathered four articles that highlight the need for digital solutions in banking.
Four Articles that Highlight Digital Banking in April
Small businesses need help from banks and credit unions by Norm DeLuce, BAI
With over 30 million small businesses in the U.S., there is a large opportunity in the business banking sector. Today, close to 50 percent of these businesses don’t think their financial institution understands their needs. As a result, many lenders are leveraging digital offerings to help create a better banking experience for their customers. This BAI article highlights key financial services that small businesses are looking for in their financial institutions.
How & Why Banks Need to Create a National Digital Presence by Steve Cocheo, The Financial Brand
Fintech competitors are able to leverage technology to compete on a national level without the need for any physical branch locations. As this competition continues to grow, lenders are beginning to rethink their traditional geographically-focused strategies. In order to remain competitive, lenders are identifying growth opportunities through creating digital banks. This article from the Financial Brand focuses on how lenders can successfully create a digital-bank presence to serve customers throughout the U.S.
CFPB focuses on rural banking access by Anna Hrushka, Banking Dive
Many rural communities rely on community institutions as their main source for financial services. As more community banks consolidate, people living in these rural areas are left with a lack of financial resources. According to this article, rural areas are 10 times more likely to be located in a banking desert than urban areas. In order to provide banking services to these areas, the Consumer Financial Protection Bureau is launching an initiative that focuses on the needs of these communities.
Consumers believe credit unions lag. Do they? by Carter Pape, American Banker
According to a recent study from Mobiquity, credit union customers were more satisfied with the service they received from their credit union than large national bank customers by 13 percent. Although there was a higher satisfaction rating, bank customers were more likely to hold an account with a national bank than a credit union. Experts believe that the driving force behind this is credit unions lacking digital offerings. In this American Banker article, industry leaders share their thoughts on the current digital state of credit unions.