As lenders plan for the future, one concept that is top of mind across all financial institutions is digital transformation. The pandemic brought on an unprecedented wave of technological disruption to the industry. Non-traditional lenders took advantage of the digital landscape to grow exponentially. Today, banks continue to navigate the uncertainty of COVID, while searching for ways to innovate in order to compete with fast growing alternative lenders.
In this news roundup, we’ve gathered five articles that explain how lenders are reacting to the new competitive landscape brought on by the pandemic.
5 Articles That Highlight The New Competitive Landscape in Business Banking
Principles to Drive Digital Banking Transformation by Daniel Haisley, Bank Director
The pandemic led financial institutions to find new ways to interact with borrowers through digital channels. As they return to more normal business environments, lenders should reassess the role that technology will play moving forward. With competition from alternative lenders closing in, banks and credit unions can’t afford to miss an opportunity to expand their digital offerings. In this article from Bank Director, Daniel Haisley highlights four concepts for lenders to consider on their digital transformation journey.
3 Ways to Build Consumers' Comfort Level With Digital Banking Tools by Cheryl Chiodi, The Financial Brand
Over the last year, lenders have been adopting new technology at a rapid pace. Today, many customers still need support from their financial institutions in making the shift to digital banking and technology that makes their lives easier. In this article from The Financial Brand, Cheryl Chiodi shares the key to success for financial institutions looking to improve their technology and adaptability. Three key ideas highlighted in this article include: avoiding repetitive requests for the same personal information, accommodating mobile-first customers, and eliminating process snags that delay responses.
Can banks compete in a digital-lending world? by Dawn Wotapka, BAI
Banks and credit unions are facing even more uncertainty as their non-traditional competitors begin to gain more market share through digital channels. To help traditional lenders compete, BAI shares five tips they can use to accelerate their digital transformations: redefine the space, embrace technology, segment the audience, remember younger users, and provide value. Read more about how lenders can leverage these tips and remain competitive in an unfamiliar landscape in this article by Dawn Wotapka.
Branches Are The Hub For Digital Bank Services And Retaining Customer Trust by PYMNTS
While the need for physical branches remains, their purpose has changed. Borrowers are still seeking the support that branches provide, but are also interested in the flexibility inherent in an omni-channel approach. According to PYMNTS, lenders should focus on digitally transforming every aspect of their business, especially the branch. In fact, they argue lenders need to turn their branch locations into a “digital hub” for banking services. In this article, Doug Brown and Karen Webster take a look at how lenders can accomplish this.
Challenger Banks vs. Traditional Banks: Reimagining the Race to the Top by Mark Roper, PaymnetsJournal
One of the biggest takeaways for lenders after the pandemic is the importance of convenience in the lending process. Today, borrowers are searching for the most convenient experience possible. Because of this, many customers are choosing alternative lenders due to the efficiency they offer. A study from Insider Intelligence projects that by 2025, neobanks will have grown by 19 million account holders in the United States alone. The time is now for lenders to drive digital transformation within their organizations if they want to remain competitive as the market evolves. Read more about how lenders can achieve digital transformation, in this article by Mark Roper for PaymentsJournal.