Mobile technology is constantly evolving, driving the uncertain future of retail banking. Based on the trends in the market, here are the 4 predictions we believe will unfold in 2018.
In a mobile-first world, the pace in which technology is evolving launches new business opportunities and expires old archaic business infrastructure daily. Mobile-first is radically changing the future of retail banking with less reliance on the physical branch and a growing demand for mobile offerings.
The traditional 9 to 5 bank is no longer the norm. Financial institutions must dive head first into mobile banking technology to keep up with the insatiable demand of mobility.
The Future of Retail Banking
Forecasting the budding trends we are observing in today’s retail banking landscape, here are our predictions for 2018
Prediction#1: Gen Xers join the Mobile Banking Demand Queue
In our previous blog on Omni-Channel Banking, we shared a startling statistic that nearly 70% of Millennials used mobile banking, according to a recent 2016 study. We all know that Millennials are quick to adopt and embrace new technologies. However, beware of discounting Gen Xers! The technological gap that separates Millennials from Gen X is shrinking and it’s reported that 67% of Gen Xers utilize their primary institution’s mobile app.
In 2018, we predict this number will continue to increase, eventually matching Gen Xers with Millennials for mobile banking usage, completely changing the course of retail banking. Are you planning and preparing for this mobile-first, omni-channel banking demand shift?
Prediction#2: Desolate Brick-and-Mortar Retail Banking Locations
With mobile banking on the rise, the need is lessening for the physically branch. As a result, we will see fewer brick-and-mortar retail banking institutions as banking branches continue to empty.
Retail banking is now easier than ever before thanks to mobile banking applications. To avoid a mass exodus of your physical branch locations, financial institutions need to stay current with their mobile banking technologies and offerings as well as continue to focus on building customer loyalty.
Those banks that still heavily rely on physical retail banking will experience trouble in the near future. While physical branch locations won’t completely decay next year, we do predict that the physical branch is destined to become obsolete. How are you planning today for less operational reliance on your physical retail banking locations?
Prediction#3: Mobility & Personalization the Perfect Retail Banking Bundle
While brick-and-mortar- retail banking will be falling to the wayside, the demand for banking services surge. Consumers still want bundling, mobility and personalization, easily accessible, whenever they want it.
As this trend continues, we will see the demand for consumers wanting to build their own suite of mobile banking products to personalize their entire retail banking experience swell. Do you have the know-how and technology to deliver mobility, personalization and omni-channel level banking in the perfect bundle for your customers?
Prediction#4: Digital Currencies & Fintech Innovation Heat Up the Market
Along with mobile banking, competition in 2018 will be fierce. Banks will not only have to compete with other banks, but with non-traditional competitors in high tech. Digital-only banks brought to consumers by big tech companies will continue to grow, offering a truly digital, mobile-first experience.
Beyond this, the demand for virtual currencies will continue to grow, such as Bitcoin, which will transform the retail banking channel. Financial institutions that don’t embrace partnerships with Fintech or facilitate their own mobile, digital and virtual innovations will not be able to compete with these types of offerings moving forward. How are you growing your digital, virtual and mobile offerings?
Retail Banking in 2018
Embracing the mobile, digital and virtual world today can help your institution survive the extinction of the traditional branch.
Learn how to secure, virtualize and mobilize with Mobilearth by requesting an omni-channel banking demo with one of our product specialists.
What are your predictions for retail banking in 2018? Share with us in the comments below!