New business opportunities are launching daily due to the pace in which technology is evolving in today’s mobile-first world. With mobile technology advancing at this rapid pace, the future of retail banking is uncertain.
Financial institutions must deliver mobile banking technology to keep up with the demand of mobility now that the traditional 9-to-5 bankers hours are no longer the norm. We’ve been observing these emerging trends in retail banking leading us to these 4 predictions for retail banking in 2018.
Prediction #1: Gen Xers join Millennials as Mobile Banking Power Users
The reality is, Millennials are quicker to adopt technology than Gen Xers. Approximately 70% of Millennials used mobile banking last year. But the technological gap between Millennials and Gen X is shrinking! It’s reported that 67% of Gen Xers are now also using mobile banking apps.
In 2018, the number of Gen Xers using mobile banking apps will likely continue to increase, eventually catching up to Millennials mobile banking usage. Make sure you’re prepared for this mobile-first, omni-channel banking demand shift for 2018.
Prediction #2: The Beginning of the End for Brick-and-Mortar Retail Banking
There is a lesser need for the physical branch now that mobile banking usage is on the rise. As a result, retail banking institutions will start to empty and there will be fewer brick-and-mortar locations.
Mobile banking apps have made retail banking easier than ever before. But you also don’t want your physical branch to empty. To overcome this, branches must stay current with their mobile banking technologies and focus on improving customer loyalty.
While physical branches won’t completely vanish in 2018, we do predict that the physical branch will go the way of the dinosaurs. Are you planning for less operational reliance on your physical banking locations in 2018?
Prediction #3: Mobilize & Personalize with Banking Bundles
Despite physical retail banking locations diminishing, the demand for banking services will skyrocket. Consumers still want easy access to bundling, mobility and personalization. As a result, consumers want to personalize their entire banking experience in 2018 by building out their own suite of banking products.
Do you have the knowledge coupled with the right technology to deliver mobility, personalization and omni-channel level banking in the perfect bundle for your customers in 2018?
Prediction #4: Demand for Digital Currencies & Innovative Fintech Heats Up
Competition over the next year will really heat up as banks won’t have to just compete with other banks, but with non-traditional competitors in high tech. Big tech companies are starting to deliver digital-only banks to consumers, completely digitalizing the mobile-first experience even further.
In addition to this, demand for digital currencies (e.g. Bitcoin) will rise, completely transforming retail banking. In 2018, banks will need to embrace partnerships with Fintech or facilitate their own digital, mobile and virtual innovations or risk not being able to compete at all. How will you grow your digital, virtual and mobile offerings to stay relevant in a highly competitive market of 2018?
The Retail Banking Landscape in 2018
Although the future is uncertain for retail banking, we are more excited than ever to see where 2018 will take the financial industry. Embracing the mobile, digital and virtual world will help you survive the inevitable extinction of the traditional branch.
Predictions by Mobilearth: Mobilearth offers cutting-edge technology in our mobile solutions featuring apps, mobile browsers, text (SMS) and online ebanking (PC and laptop). Learn more at www.mobilearth.com.