With the rise of digital-first competitors such as neo banks and fintech, traditional financial institutions are out of their depth. Account holders now expect a personalized, fast, and convenient banking experience, and if they are not happy with what they have, they will look somewhere else.
Capgemini surveyed over 8,000 banking customers, and 75% said they are attracted to Fintech competitors that offer fast, low-cost, accessible, and easy-to-use products and experiences, and more than 85% said they would recommend a fintech they use to a family member or friend.
Nowadays, technology makes it so easy to switch from one banking provider to another that traditional financial institutions can lose clients if they don’t keep up with their needs and expectations.
So, what strategies can financial institutions implement to strengthen customer loyalty and prevent account holders from switching to competitors?
By opting for an omnichannel digital experience.
An omnichannel banking platform gathers all banking services from a website, mobile app, bank branch, and any other available channel in one single place to provide account holders with a seamless banking experience.
Account holders can seamlessly initiate banking activities on mobile and complete it on a desktop computer, ensuring uninterrupted access and flexibility across touchpoints.
Omnichannel banking not only is convenient but empowers financial institutions to enhance their operational efficiency, improve their customer journey, and retain customers as well as stay competitive.
Embracing an omnichannel banking platform can bring a whole lot of benefits for financial institutions.
It gives account holders more flexibility and freedom to manage their finances, whether they prefer to do it in a branch or online via their phone or computer, which in the long run improves customer satisfaction.
As customer expectations evolve, omnichannel banking allows financial institutions to keep up with the pace by scaling their services, launching new products quickly, and providing a consistent and integrated experience across all touchpoints.
Omnichannel banking also enables banks and credit unions to provide top-notch personalized services by retaining context and the continuity of every customer interaction across all channels. Account holders feel understood and valued which helps financial institutions build long-lasting relationships.
Delivering consistent, personalized communication across all channels provides account holders with a unified experience that fosters familiarity and builds trust in the institution.
Frictionless experiences reduce churn and make account holders happier. Their needs are met efficiently through the channel of their choice, reducing frustration.
In a research conducted by McKinsey, it was found that banks that successfully implement omnichannel strategies see a 20% increase in customer satisfaction rates. This also translates to higher customer loyalty.
3. Data-driven decision making
Omnichannel banking simplifies the collection, management, and secure utilization of customer data. Information is automatically integrated and safeguarded across all channels, empowering financial institutions to provide tailored services while upholding stringent data privacy and regulatory standards.
Employees access the same data regardless of channel, speeding up service delivery and reducing redundancy since all customer interactions are stored in a single database.
This reduces the need to re-enter data across channels and ensures consistent customer information.
With real-time access to accurate data, banks can make quicker and more informed decisions. AI leverages customer behavior insights to deliver personalized experiences, anticipate individual needs, and enhance operational efficiency through optimized resource allocation.
4. Operational efficiency
An unified infrastructure reduces duplication of systems across channels (e.g., mobile, web, branch). Centralized data and processes allow for faster service delivery and reduced operational overhead.
A modular architecture allows for agile updates and innovation. This enables financial institutions to launch new products and services simultaneously across all channels, reducing development and deployment time.
Scalability and flexibility allow for faster support of innovative technologies. Using AI and automation, routine tasks like account opening, loan processing, and fraud detection are automated, freeing up staff for more complex tasks. These tools handle customer queries 24/7, improving response times and reducing the workload on human agents.
Less manual work and fewer errors also mean lower operational costs.
5. Competitive differentiation
Omnichannel banking signals that a financial institution is innovative, customer-centric, and future-ready. It becomes a key competitive advantage to acquire younger tech-savvy customers.
It also grants lower costs and higher efficiency, which allows for better pricing, faster service, and more investment in innovation. Competitors with fragmented systems may struggle to match this agility and cost-effectiveness.
Adopting an omnichannel banking strategy will enable financial institutions to remain relevant in the fintech world.
Embarking on an omnichannel transformation can feel overwhelming, but with the right platform and a clear roadmap, it can become a strategic advantage.
The journey begins with a structured approach. Here are the essential steps to help financial institutions launch a successful omnichannel strategy.
1. Define a strategy and objectives
Start by aligning your digital transformation goals with customer expectations and business outcomes. Are you aiming to improve customer engagement, reduce operational costs, or accelerate product innovation?
Set clear, measurable objectives such as increasing mobile adoption, reducing branch dependency, or enabling real-time cross-channel services.
2. Assess current capabilities
Take stock of your existing infrastructure, digital channels, and customer data systems. Identify gaps in your current setup such as siloed data, outdated interfaces, or limited mobile functionality that could hinder a seamless omnichannel experience.
ebankIT simplifies this process by offering a modular architecture that integrates easily with legacy systems. Its middleware layer and open APIs allow modernization without a full core replacement, making it ideal for phased digital transformation.
3. Choose an omnichannel platform
Selecting the right platform is critical. Choose an all-in-one omnichannel platform that supports mobile, web, branch, contact center, and even wearables, all from a single codebase. This reduces complexity, speeds up deployment, and ensures a consistent user experience.
Tip: Look for a platform that balances innovation with stability. ebankIT offers both.
4. Design the customer journey
With your platform in place, map out the ideal customer journey across all touchpoints. Focus on consistency, personalization, and convenience. ebankIT provides tools to visualize and optimize these journeys, ensuring that customers can start an interaction on one channel and seamlessly continue on another.
5. Integrate third-party systems
To deliver a truly connected experience, integrate your omnichannel platform with third-party services. ebankIT’s API-first approach and robust integration layer make it easy to connect with your existing ecosystem and future partners. This flexibility ensures your platform evolves with your business needs.