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Industry Insights

Digital Innovation in Banking (And What It Means to Accountholders)

Digital Innovation in Banking

Technology moves fast. We see it with major “disruptions” from both digital innovation in banking as well as in our personal lives. These changes breed new opportunities but the accompanying challenges can be difficult to overcome. With all the avenues for innovation, what’s the most profitable path for financial institutions? 

A people-centric approach with a dual-view of the digital landscape is always a smart place to start. 

Today’s digital climate dictates much of our lives. Financial institutions must understand how this digital landscape impacts both their organization and accountholders. With this dual accountholder-institution view, banks and credit unions can find a synergy and spark real innovation within their institutions.

A Dual-View Approach in the Digital Landscape:

So, what is top-of-mind to accountholders and how can financial institutions capitalize on these trends?

In today’s connected world mobile, security and a balanced online-offline experience reigns supreme.

These should be at the forefront of your digital innovation in banking initiatives, as they carry strong growth potential and help build your digital portfolio while tackling the top consumer concerns.

Let’s break down the primary points of focus to effectively divide and conquer.

Mobile Banking

Which would you miss more — your phone or your wallet? Most consumers say they’d ditch their wallet if forced to choose, according to a recent Bain & Company study. It’s no surprise, as The Federal Reserve reports mobile banking hit a record high in 2016.

Mobile bankers aren’t just plentiful, they’re profitable. Fiserv reports the average mobile banking user has nearly double the product holdings of in-branch accountholders. Plus, mobile users have 46 percent more credit/debit card transactions than non-mobile bankers.

Ultimately, mobile bankers generated 72 percent higher revenue than branch-only accountholders.

Javelin Strategy and Research probes even deeper, investigating mobile banking’s impact on overhead. They found the average cost per mobile transaction to be just 10 cents, while an in-person transaction at a physical branch is $4.25.

Mobile makes accountholders feel in-control of their finances. It streamlines common banking experiences and even helps them better detect fraud or unusual activity. Plus, mobile gives financial institutions a new touchpoint to engage and build loyalty.

At EZShield, we put this initiative at the forefront with the DashAccess mobile app. DashAccess allows users to access their protection on-the-go, including passwords and the personal information in their Online Identity VaultTM. Users feel engaged and empowered with technology centered around them.

Security is Important in Every Realm

The digital landscape has also made security a priority in nearly every banking activity. Accountholders face mounting security pressures, as many have become uncomfortably acquainted with the rise in data breaches, cybersecurity risks and online scams.

These security qualms also inhibit adoption of other digital innovations in banking. In fact, 36 percent of accountholders cite security concerns as a deterrent for mobile adoption.

Adopting strong security protocols and relaying consumer-focused security resources to accountholders is a top priority for everyone in the industry.

From companies using selfies for account authentication to the widespread adoption of blockchain — security is taking on some incredible new approaches. But don’t forget to keep the accountholder in perspective throughout implementation. Relay security initiatives to your accountholders and make it a part of the user experience. This transparent approach will instill confidence and boost adoption rates.

Make sure you’re addressing every concern by providing accountholders with the information they need to protect themselves. Empowering consumer education on hot topics such as identity theft and fraud protection are essential in addressing security concerns while building relationships. We’ve found this to be such an integral facet of the accountholder experience that we developed a dedicated RSS feed so our partners can relay up-to-date educational content on their own websites.

You’ll find putting innovative resources behind security will have numerous benefits for all parties involved.

Online-Offline Experience

You’ve already had a taste of the abysmal data surrounding branch-only profitability, especially when compared to mobile. In addition, branch-only accountholders have two times higher churn. While concerning, it’s far from the death of branch banking (despite what many industry experts say).

There is still a time and a place (a physical one) for branch visits. Accountholders want an offline-online banking experience, that includes branch visits from time to time. Nearly half of North American accountholders see more value in their financial institutions after speaking with someone in person. However, this shouldn’t be your only focus.

Streamline the online-offline experience by introducing digital touchpoints in-branch. These touchpoints should reflect your other innovations but also be accompanied by a human touch.

It’s far more comforting to adopt new technology, like an in-branch digital aid, when you know help is standing by. This makes accountholders, especially tech-challenged individuals, feel more confident using digital banking tools and sparks adoption in other areas, such as your mobile app or online banking.

Top 3 Takeaways:

  1. Use Outside Resources or Partnerships
    Open APIs, FinTech and value-add partnerships are helping financial institutions stay agile in a dynamic market. As a leader in identity protection partnerships with financial institutions, EZShield knows the ins and outs of finding a partner (after all, we’ve mastered what it means to be a good partner). For this reason, look for a partner that focuses on your goals and has user-friendly, secure technology to help you reach them.

  2. Reporting
    Digital innovations in banking can be clouded by a bit of buzz. Don’t always go after the trendy, shiny and new — what makes a lasting impact is digital pushes that are aligned, tracked and re-visited to ensure they’re helping you reach your goals. Report regularly on initiative performance and don’t be afraid to pull the plug on a lack-luster project.

  3. Collaboration
    We may be in the age of technology, but that doesn’t mean it’s the only path accountholders want. Take a balanced approach by investing time in your traditional banking practices and staff as well. Make sure existing practices can easily cohabitate with your new digital innovations and ensure staff is tuned-in to these new advances. This breeds a culture of innovation and ensures accountholders get the best possible experience.

Start Your Innovation Experience

Ready to take a dual-view approach to digital innovation? Then consider a partnership with EZShield to help you reach your innovation goals.

EZShield’s award-winning identity protection products align to meet partner needs and provide an engaging experience for their accountholders. We provide world-class support, online and mobile access, 24/7 live support all backed by our strict security standards and protocols.

Start your search — schedule a demo today!

About Laura Bruck

Laura, former VP of Marketing at EZShield, now a Sontiq brand, is a marketing professional with over 20 years of experience leading marketing and supporting sales to develop partner solutions, transition to new markets, and achieve significant revenue growth.

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