Independent Banker - October 2017 - 78
Nuts & Bolts
PAYMENTS EXCHANGE
Why you can't ignore
the user experience
We look at examples of how community banks can adapt their digital offering to
maintain an exceptional customer experience as more people migrate to online
and mobile banking.
By Collin Canright
C
ommunity banks'
traditional competitive
advantage is their
personal service and
proximity to their
customers. But what happens when
customers start preferring mobile
devices and online banking to
branch visits?
The user interface of a website or
app can make or break any banking
technology solution. But an optimized
online customer experience requires
technical know-how and financial
resources, making it one of the biggest
advantages large banks and fintech
firms have over smaller community
banks. Consumers' steady migration
to online shopping sites like Amazon
and Netflix, which feature almost
effortless interfaces and personalized
customer experiences, only widens
the gap.
It's fair to say that many community
bank websites do not compare.
They are largely static, digital brochures
of products with a link to the
online banking portal. Newer digital
banking features like account opening
or loan applications, while increasing
in availability, are still lagging.
Fewer than half (48 percent) of all
financial institutions indicate that
the account-opening process can be
done without coming into the branch
at all, according to a recent study by
the Digital Banking Report (DBR).
The results for community banks are
better when looking only at online
checking account opening. Half of
smaller community banks (less than
$500 million in assets) offer online
checking account opening; the
percentage increases to 70 percent
of those between $500 million and
$1 billion.
However, the study concludes,
" digital account opening
processes are falling far short of
customer expectations. "
" It starts with culture, " says Jim
Marous, owner and publisher of DBR
and copublisher of the website The
Financial Brand. " That is the real
challenge when many community
banks are managed by traditional
bankers who are reluctant to
embrace digital. "
Broad appeal
It isn't only millennials who want
more digital functionality from their
banks. A recent study by AARP,
" Financial Innovation Frontiers 2017, "
points out that Americans over age 50
are technologically adept and control
more than half of the nation's assets.
" When it comes to technology,
they adapted to it, adopted it,
demanded it, and made it an essential
part of American life, " the study
states. Recognizing the possibilities,
fintech firms are " taking aim " at
the opportunities.
But not all community banks
are being left out. DBR research
shows that customer experience is
" extremely important " to banks, with
31 percent calling it their top priority
78 ICBA IndependentBanker October 2017
Independent Banker - October 2017
Table of Contents for the Digital Edition of Independent Banker - October 2017
Table of Contents
Independent Banker - October 2017 - Intro
Independent Banker - October 2017 - Cover1
Independent Banker - October 2017 - Cover2
Independent Banker - October 2017 - Table of Contents
Independent Banker - October 2017 - 2
Independent Banker - October 2017 - 3
Independent Banker - October 2017 - 4
Independent Banker - October 2017 - 5
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Independent Banker - October 2017 - Cover3
Independent Banker - October 2017 - Cover4
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