Search for a balance between technology and trust in the financial sector
The application of tech innovations to banking products offers entities a unique opportunity to improve people’s lives. They will play a central role in helping to manage the domestic economy of their customers in the next months. Those who haven’t already done it should now make a commitment to enhancing overall financial well-being.
Do you know what is best? That you can do it automatically while increasing your sales.
Financial trends 2024 for bank customers
Cashback
This term refers to the amount of money that the bank gives back to the user after making a purchase in specific stores. Cashback has taken the shopping experience to a whole new level. It’s no longer just about spending money, but about earning something in return! Customers choose accounts that offer them immediate rewards in exchange for daily spendings. The fact that their behavior is being rewarded gives them great satisfaction, so they are more likely to use the service again.
This is what happens with the Waylet App, from Repsol. A success story that can show banks how to increase customer loyalty and engagement.
Financial inclusion
Open Finance acts as a catalyst that allows access to financial products and services demanded by unbanked people: transactions, payments, savings, credit or insurance –among others–. There are still many users without access to minimum services that meet their specific needs. Traditional entities have the power to change this situation, using the technology they have at their disposal.
In Mexico, for example, social security data is already being used to carry out financial scoring that allows access to loans.
Hyper-Personalization of banking services
Customers already know the benefits of neobanks and enjoy the financial services offered by large technology companies. What does this mean for traditional banks? That users are demanding a more personal relationship with their entity. It is necessary to know them better to offer a completely personalized service. Here machine learning and NLP tools can be a great help!
Technology helps recognize predictive moments. When a kindergarten expense appears in a customer’s transaction, it may be a good time to offer life insurance, for example.
“Green” and sustainable products
Anne-Sophie Castelnau, global head of sustainability at ING, recently commented: “There is no denying that one of the biggest challenges for society is sustainability, in all its forms. Climate change threatens both the planet and people.” Customers take into account the impact of their consumption habits and those banks that offer carbon footprint measurement will be aligning themselves with the concerns of a large percentage of the population.
In the case of companies, carbon neutrality can even become an imperative if they want to have access to loans.
Embedded finance
Although it is not a new concept, next year we will see banking as a service (Baas) options focused on creating short-term value for the end user, such as automatic payments, identity verification or debit cards. For the customer it means the convenience of not leaving the website they are browsing to purchase tickets, reserve a table at a restaurant or pay half of the bill. Follow this link for more information on the financial trend of banking as a service.
For example, Klarna uses this technology and allows users to buy in more than 500,000 establishments and pay in 30 days, or divide the cost of the purchase into 3 interest-free installments.
Financial trends 2024 for traditional entities
Fraud control and cybersecurity
Fraud attempts in digital transactions in Spain have increased by almost 30% in the first half of 2023. With this panorama, banks need to shield sensitive information to avoid any possible breach in their systems. Ensuring the security of digital banking, assessing risk exposure and checking the existing cyber defenses are priorities to which is added the pressure of complying with increasingly demanding regulations.
Use of APIs
With the rise of online transactions, Open Banking and PSD2 in Europe will continue to evolve. Open finance involves sharing data with third parties through application programming interfaces (APIs).
This encourages innovation and allows us to offer better service to customers, as it means an improved user experience. Among the functionalities of these tools are digital payments, the analysis and enrichment of transactional data or the improvement of security.
The power of data
The use of artificial intelligence continues to set a trend in the financial sector: it allows entities to have tools that analyze, categorize and enrich all the information related to customers’ banking movements. This, in turn, allows them to obtain valuable insights with which to better plan their commercial strategy. If you want to generate new up-selling and cross-selling opportunities, here’s the magic formula!: enrich the information your customers offer you daily, segment them and hyper-personalize your services accordingly.
Customer-centric experience
According to McKinsey & Co., 71% of customers want companies to offer them personalized experiences. Additionally, 76% feel frustrated if this does not happen. If consumers are not satisfied with the experience they are given, they now have an easier time than ever to choose another alternative. The secret to an unbeatable CX is using Big Data to make informed decisions about how, when and why to contact the user.
Be a financial ally
Do you know that you could differentiate yourself from the competition by helping your customers? It’s as easy as offering them AI-based solutions. They will be able to make better financial decisions due to micro-savings modules, where customizable alerts warn them of overdraft risks or duplicate charges. They also have solutions such as PFM, that give users the opportunity to manage their personal finances in the best possible way and effortlessly, thanks to alerts, advice and automated actions.
Progress, innovation and collaboration: FinTech Alliance
Collaborating is in the DNA of technology startups. Our mission is clear: harness the transformative potential of financial collaboration and promote an inclusive digital economy that allows us to overcome obstacles and propose disruptive ideas. Bringing together banks and fintechs has become a key focus for the industry and, in recent years, has highlighted the importance of interconnection and cooperation.
As we move forward, it is important to create new strategies that ensure a sustainable and inclusive financial future. If you want to know more, enter here.
