We had an amazing experience at the historic Broadmoor for the American Banker 2018 Retail Banking Conference. Our representatives from Omega Performance thoroughly enjoyed our time meeting and talking with those in the industry, as well as attending sessions. We came back with banking trends that we thought would be useful to share with you as you plan for 2018 and beyond.
Here are the top four trends we gained from the banking conference:
1. The economic outlook shows that there will be growth in spending in 2018, partially due to deregulation and due to last year’s tax changes. However, in 2019 there looks to be slower growth and increasing inflation, and we may even be facing a recession in 2020. The labor market is still strong and wages are likely to increase.
2. It’s all about digital. It’s important for customers to be able to access information on their phone, tablet, or computer, and it must be easy and seamless for the user.
The banking branch is still important, but only for complex transactions and problem-solving. Three-quarters of customers choose their bank because a branch location is close to their home or work, but most rarely enter the branch.
To succeed in the future, your tellers will need to become universal bankers who can provide full service and problem-solving capabilities. It’s good to note that opening an account still usually happens at the branch, although that too is evolving into a digital service as new technology for identifying the customer is adopted. You can also use your branch to accomplish your bigger purpose, such as to help local entrepreneurs, or to help customers adapt to the digital revolution through customer financial education and services.
3. Purpose is important. You should choose a “north star” that drives how you interact with your customers. “The customer journey needs to be what the customer wants it to be.,” said one speaker, Carol Sexton, head of Retail banking at Cambridge Savings Bank.
The purpose is to serve the customer, help them with financial education and help them access the services they need. Adopt a customer-centric purpose and publicize it to be successful. Design easy to use products and services around that purpose.
4. Agility is critical. You must have the ability to change and have an agile development system in place that is user-focused and develops and changes along with user needs.
Right now you need to be able to adapt to the millennial customer who likes everything to be digital, seamless, fast, and available for every platform. They like rewards, and if an account comes with other services, then they don’t mind if it costs money. They tend to want experiences over things, and want those experiences to be personalized and painless.
At the same time you need to be prepared for the Gen Z customers of the future who have grown up as digital natives in a world with social media and personalized marketing. They expect personalized messaging and real-time payments; are risk-averse; and while two-thirds of them already have a bank account, almost half of them avoid face-to-face banking transactions.
We hope these trends can help your organization adapt to a changing landscape in banking. Omega Performance has provided training solutions to the financial services industry for the past 42 years. We continue to innovate to help our clients meet the needs of their customers and members. Learn more about Omega’s sales and credit training offerings.
Contributor: Laura R. Poggi, Director of Marketing, Omega Performance