It has never been more important than now for financial institutions to embrace digitalisation. Even the Americans – who some would argue are a little behind the innovation curve in Banking – are accepting the fact that customers are willing to change banks in pursuit of a better and more seamless digital banking experience.

“Developing a seamless digital experience that resolves a customer’s need the first time around, without forcing them to resort to a phone call or branch visit, is key for any financial institution looking to stop leakage and retain customers,” said Gerard du Toit, a partner with Bain & Company and co-author of the report.

Digitise or die – the importance of digitising in 2020

As our society continues to embrace digitalisation, it has become apparent that in order to survive, the banks must do the same. People are increasingly resorting to online chats rather than phone calls, online shopping rather than in store and online banking in favour of visiting their local bank branch. So how do banks keep up with the rapid digitalisation? Well, the key lies in understanding AND meeting the needs of the consumers who drive the market; as failure to do so could very well lead to closing.

Even digital/branchless banks are not without risk of facing an early exit, not because their technology is necessarily wrong or out-dated but simply because they are offering the same tired and obsolete products and today’s customers know better.

Offering a seamless and secure digital experience, together with products and services that the customers value, may very well be the recipe for success. If the security element is too cumbersome, customers will vote with their feet – and so will retailers and merchants. While having the wrong product set means will not attract customers in the first place.

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