December 11, 2015

Keeping Up In 2016 Means Embracing Digital

Banks and credit unions are taking steps to keep up with digital technology to remain on the competitive forefront.

It's nearly impossible to ignore the incredible impact that digital technology has had on our world, both on a personal and business level. And these innovations are coming on stronger and faster with each passing day.

Every niche has been affected, including the financial industry. Banks and credit unions that are slow to change could simply be left in the dust if no steps are taken to keep up with what the competition is doing, and with what consumers are increasingly expecting from their financial institutions.

Those that are able to quickly and efficiently adapt and implement state-of-the-art digital technologies will be able to remain relevant, and boost the level of engagement they have with their client base.

Getting Out of the Comfort Zone

Banks have traditionally been known to be somewhat slow to change - particularly when it comes to technology. In fact, less than 15 percent of banks currently have sophisticated digital marketing technologies in place - a number that's a lot lower than other industries.

Banks have been known to be rather conservative, especially when it comes to potential changes that will essentially alter the way they do business, and have been doing business for decades.

Lack of experience and knowledge about these new technologies continues to be an obstacle that banks are facing. This is why financial institutions need to put forth more of a concerted effort to become more digitized and adopt these trends that are taking over every industry across the globe.

Digital technology has been immersing itself in the world of financial services in many ways, including the introduction of cryptocurrency, mobile money transfers, and fintech firms that have been taking the online lending world by storm. If banks haven't taken measures to join the digital crowd already, it's high time that they do.

Banks and Credit Unions Are Stepping Up to the Plate

Despite the fact that banks have been hesitant to adopt major changes, more and more of them are taking measures to keep up with the crowd. They're increasingly understanding how much digital technology can help to boost business and improve working relationships with their clientele.

They are doing so in a variety of ways. For starters, many banks are taking part in what's known as 'education-based marketing', which is essentially the sharing of knowledge with the intent of developing trust among the public.

Social media is one of many tools that financial institutes can capitalize on to keep up with the technological times.

These days, people can be instantly gratified with the info they're seeking through a few clicks of a button on their mobile devices. By building credibility with customers through the use of educational messages, financial institutions can boost business.

Adopting and implementing big data is another savvy way that an increasing number of banks are infusing digital technology into their institutions. These large data sets can be analyzed to unveil patterns and trends about human behavior, and how such actions affect business.

By planning big data initiatives, banks can help enhance the customer experience, which in turn can spike bank business. But banks need to focus not simply on big data as a whole, but rather, the right kind of big data relevant to what makes their business - and their customers - tick.

Digital intervention wouldn't be complete without a dose of social media marketing and interaction. Using social media channels can bring banks a great deal of success when it comes to connecting with existing and prospective customers online.

In addition to promotion messages, banks also need to use it in such a way as to engage their clients in a bona fide conversation. Finding out what clients want can be made easy simply by listening to the audience via social media. And a growing number of financial institutions are taking advantage of this.

Embracing Digital Technology Into the New Year

2016 looks to be a year of major transformation, and the ability of a bank to modernize its efforts will determine how well it will succeed in the years to come. Banks and other financial institutions that aren't open to embracing this change will only be hurting themselves.

The future lies in financial institutions accepting this digital technology, partnering with experienced and compliant FinTech firms, buying portfolios from FinTech originators or buying on a flow basis. Garnet Capital can play a key role in helping banks enter this new arena and foster the essential relationships needed to take banks into the future.

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