Traditional financial institutions went through a major period of tech adoption throughout the last two years, but for many there is still work to be done. In order to remain competitive in 2022, lenders are focused on providing customers with best-in-class digital experiences. This month, we’ve gathered four articles that highlight how lenders digitally transformed their offerings in March.
Four Articles that Highlight Digital Transformation in March
Staying in the game: A small bank's bid to go digital by Allissa Kline, American Banker
Five Star Bank, a $5 billion community bank in New York, has benefited from being an early adopter of technology. Before the pandemic, they were focused on enhancing their digital experiences for customers and continued to do so throughout the Paycheck Protection Program and beyond. Today, the bank continues to look to the future of banking by partnering with fintechs like Numerated, to bring new offerings to their customers and remain competitive as the industry continues to prioritize digital channels. This American Banker article explains Five Star Bank’s digital transformation journey and their leaders’ hopes for the future as they continue to innovate their digital experiences.
PYMNTS Intelligence: The Imperative to Improve Digital Banking for Business Clients by PYMNTS
Small business customer expectations have changed post-pandemic. According to this PYMNTS article, 43 percent of small- to mid-sized businesses have increased their use of online banking services, and that number is expected to rise. To keep up with fintech competition, lenders need to provide small businesses with excellent digital experiences that meet the customer where they want to be met. Implementing a digital banking strategy like this allows banks to retain SMB customers and increase revenue.
The battle for business banking by Dan O'Malley, BAI
Community institutions are known for their white-glove service. This type of service creates a strong sense of trust between financial institutions and their customers that is difficult for megabanks and fintech competitors to replicate. According to this BAI article, small businesses were more likely to receive fast assistance with PPP loans from community institutions, than from megabanks. Lenders that can combine their excellent customer service with a best-in-class digital experience will have a strong competitive advantage—even after the pandemic—because of their ability to provide borrowers with an omnichannel experience.
Fintechs Raise Digital Transformation Stakes, But Only 1 in 3 Banks Ante Up by Steve Cocheo, The Financial Brand
As fintechs earn more market share, it’s important for lenders to focus on how they can continue to innovate and remain competitive. Lenders should look at digital transformation as a continuous process rather than one with a beginning and end. According to research from Forrester, only 35 percent of financial institutions have gone beyond just implementing tech to expand its use. This article from the Financial Brand explains how lenders can continually evaluate and expand their digital offerings for greater success in the new normal.