How can retail banking adapt to the new normal to keep up with customer demand?

by Credera

Today’s retail banks are undergoing historic levels of change. The effects of the Covid-19 pandemic has caused a shift in people’s living and working arrangements, resulting in a change to their financial behaviours and expectations. Existing banking systems, such as payment processing and short- term lending, will need to significantly adjust to reflect changing consumer requirements, with a greater focus on data & analytics solutions.

Banks now operate in a world of constant change across all layers of their enterprise architecture, with basic assumptions about how banks operate being challenged by rapid and complex change.

Retail banks need a business-led data strategy that embraces and enables constant reinvention, facilitating new technology solutions and customer experiences to be delivered at record pace.

New customers, new bank

According to research by McKinsey, up to 80% of households have suffered significant decreases in income and savings, whilst up to 60% fear for their long-term employment status as a result of the Covid-19 pandemic. This has resulted in more people considering savings and investments as a way of providing financial security, as well as an increased desire to manage products more easily across financial institutions.

Customers want ‘tangible’ support in the form of payment holidays and adjusted credit terms, and banks are expected to be able to personalise their response by using rich data about their individual household conditions. In addition, digital payment volumes have accelerated, with banks now having to integrate with more points of sale and process a higher number of online transactions.

The new consensus is that these changes will not be short lived. So what does this mean for banks?

Read the full insight on the Credera website