Why banks must branch out in the digital era in order to survive
In the digital era, financial institutions and their business customers are often working at cross-purposes.
Businesses want the same type of customer service they receive from tech giants like Amazon and Apple. They want financial products without the hassle of having to leave their homes or offices, or to deal with archaic forms or processes.
But it’s not easy, because banks are required to manage complicated regulatory burdens as well as antiquated legacy technology as they try to meet those needs.
Nonetheless, banks and financial institutions are facing a profound threat to their very existence if they don’t determine, and fast, how to retain and attract new business banking customers with the type of seamless, frictionless service they’ve come to expect. And that will require a major overhaul of their existing technology infrastructure.
We’ve been hearing more and more about these gaps in expectations versus what banks can easily deliver from our clients and customers in recent months. That’s why we decided to do a deep dive on the topic. When we did, the path forward became clear: It’s time for banks to branch out.
Register to download our latest whitepaper here: https://www.liveoak.net/whitepapers/business-banking-innovation-in-high-demand-for-todays-business-banking-customer/
It’s well worth a read. Why? Because the situation is critical.
Banks are now having to fight off fintech startups and challenger banks that are in hot pursuit of their customers — 60% of new revenue growth is going to new entrants in the banking space.
And the rate of abandonment in the financial services industry can be as high as a stunning 75% as aggravated would-be clients simply just walk away when trying to fill out forms or sign up for financial products online.
And so banks must close the expectation gap and give clients what they want when they want it, without anyone ever needing to get in the car and drive somewhere or to wrestle with complex, 1990s-era forms and processes.
Never before has the old adage “the customer is always right” been more true for the financial services industry. Business banking clients are, in fact, always right, even if their expectations may seem unreasonable. And the time is now for banks to innovate, evolve and re-invent themselves to attract and hold onto them.