In the last few years, our economy and the way companies deal with their customers has been redesigned by technology. This wave of digitalization touched almost every industry, and banking is no exception.
Traditionally, banks conducted their services in bank branches through face-to-face interactions with their customers. However, innovative digital technology has created customer behavior changes, whose preferences are shifting to digital and highly personalized services. To meet these new demands, banks introduced digital banking channels such as telephone (t-banking), internet (e-banking), and mobile (m-banking) banking, transforming the way customers are being served and setting a challenge to traditional banks methods.
Today, customers can withdraw money, apply for loans, and make payments online or on their smartphones. People can manage their finances in a simple way, anytime and anywhere, without the need to queue in a bank.
Besides this, the pace of technological development and the investment in solutions more digital-oriented by banks has created the opportunity for a crop of nimble start-ups, known as Fintech enter the market. These non-financial competitors launch themselves in the industry by presenting more niche and customized financial services and products. The BigTechs (Google, Facebook, etc.) joined the game too.
Once a former protected and stable market is now engaged in a new dynamic of competition with an increasing number of challenger banks, Fintech, and tech companies in the race, making competition for the customer harder than ever.
Banks have embraced this digital era and are investing more and more in digital banking, which is about making services available through digital means and machine learning and artificial intelligence applied to banking, being entitled now as tech companies. But is this enough to achieve customers’ loyalty?