When it comes to banking, consumers want a frictionless experience, so it’s no wonder financial technology (FinTech) has pulled market share from regional banks. The majority of FinTech users are millennials, and regional banks can win these customers—some of whom have never opened an account with a legacy bank—with a combination of compelling marketing messages and technology investments.
Together, these tactics bring millennials into a branch, entice users to download your app or retain new customers by delivering the experience they expect from their financial institution. That doesn’t mean you have to dump your entire budget into creating a shiny, robust app. A simple app that is capable of handling basic banking functions will do.
Not convinced? Before jumping into the best places to allocate your tech budget, let’s explore two reasons why regional banks should invest in technology.
Customers want it.
Nearly 30 percent of consumers claim that a positive experience online or in a mobile app is more important to them than a helpful bank employee. However, more than 75 percent of millennials will only consider a financial institution that offers in-branch AND online operations. Add in the fact that 61 percent of millennials would consider moving to a community bank or credit union, and you can see how a little bit of tech could give regional banks the upper hand.
It can save money in the long run.
If customers adopt mobile-banking to deposit checks, branch visits can be cut by 33 percent. Mobile banking app users conduct basic banking actions like checking their balance, transferring money, receiving notifications and even opening accounts. Regional banks should let go of demanding customers come to a branch to perform simple tasks like these and invest in technology that can easily allow them to do so both in branch and online.
Think of the money that could be saved on new customer acquisition costs when new customers are attracted to features that make their life easier, rather than chasing an offer.
Winning back FinTech users
Now that you understand the importance of technology for regional banks, here are three areas to focus your attention to win back FinTech users.
- Create a custom app that’s consistent with your brand or obtain a third-party app that can be tweaked to fit your needs. Avoid third-party apps that are cumbersome and inconsistent with the look of your website. Create a seamless, concise and focused user experience that meets your and your customers’ needs. The app should be able to handle rudimentary banking functions like check deposit, money transfers and mobile payment options. The Mobile Deposit Benchmark Report pegs check deposit as the most desired mobile banking feature; if your app does nothing else, make sure it can at least do this.
- Personalize the user experience. Regional banks can use their comprehensive service and product offerings to send customized content and offers that add value FinTech can’t. Not only should the messaging be personalized, but you need to reach them when they want, wherever they are.
Consider a multi-channel approach that delivers information through the channels customers prefer to interact with their banks in, whether its email, text, social or in-app. Showing that you understand your customers’ personal preferences makes them feel valued and allows them to bank in the way most convenient to them.
- Bolster your customer service by adding more online capabilities. Create outstanding customer experiences both in-person and online. Don’t require customers to come into the bank to open an account or ask questions; customers want to be able to self-serve, and they want to access your bank whenever they want.
Add an FAQ page to your website and consider complementing your call-center reps with online chat or a customer support account on social media. Millennials are a loyal demographic, and over half are more loyal to brands that interact with customers on social.
Customers’ expectations are constantly evolving, and most regional banks have work to do. To meet your customers’ needs, your bank must be open 24/7. Technology plays a critical role in making that happen. If you have sub-par (or no) tech options, you can’t expect to win over younger clientele and meet their demands. Incorporating technology into the mix makes your regional bank a perfect fit for millennials.
Want to talk about how you can attract millennial customers to your bank? Email us or call (317) 631-6400.