Software Technology Bridges Generation Gap in Banking and Finance Sector

No one would dispute the seismic revolution in the financial services. But with plenty of customers still more comfortable with those conventional banking services, can technology help the banking and finance sector cope up with so very different needs of different generations? Service providers have realized that their customers are looking out for high-quality, personalized, digital interactions, however; the real challenge is how banks and financial institutions would get there and still maintain profitability in coming years?

With the digital revolution swooping across industries, it has become mandatory to adapt to evolving technology and weave it with your services. A research suggests that 72% off millennials will make up more than 50% of the workforce, and be active users of mobile banking.

The core issue here is that you might have millennials embracing digital technology, but your existing customers are your older people, with more saving and investments, are more "Profitable". So now the focus is more on educating, and then marketing the technology; to make older people - trust and embrace digital technology.

It is a difficult task, of connecting these two extreme Generations. But, Barclay’s Digital Eagle scheme has been offering free tech advice on subjects even beyond their services. The bank realized that the more confident and comfortable people are using technology in all walks of their lives; more are the chances they will use it in their financial life.

Millennial’s take on current Banking and Finance scenario

By now you would have started thinking that, the only way out, is to bifurcate your services according to age group, but I would say it’s not just a mistake, but a blunder. Change in behavior isn’t limited to generations. It’s more to do with economy. There is altogether a different thought process also, which implies that the change in customer behavior is not restricted to generations, it has more to do with economics than age. Anyone of any age has and can now have access to this digital revolution, as the cost of having the information in your hands through a smartphone is decreasing day in and day out, which certainly is a game changer.

One thing that everyone agrees to is that technology is changing at light’s speed, becoming more accessible and compact.

The behavior and ever evolving expectations of millennials or the younger generation are so very diverse. While they go with established and trusted brands, they do not hesitate in taking chances to try other options, based purely on recommendations from friends or even people they don’t know. You may find them equipped with four, five, six payment apps on their phones, but it’s not only about them. Consumers now swiftly move from one service provider to another – whoever provides those services conveniently and robustly. This leads to fragmentation of access points for service providers.

One more challenge the finance sector faces is the way consumers access their services. A customer may go online with a basic inquiry as to how much could I borrow to buy an apartment? Such queries are directional and broad ranging. Then the twist in the story is that they will go into a branch and repeat all the details. This certainly means that all financial service providers should have a joined up conversation across multiple touchpoints.

Young millennials may use the high street branch, while they also use the digital channels also; they value face-to-face contact, depending on the product. If they are using a credit card for the first time or taking out a mortgage, they want the reassurance of speaking to someone.

With this understood, several technology firms deliver customized digital solutions to banking and finance industry, to handle these everyday challenges, in turn, making it easier to avoid the annoyances and fees associated with traditional banking.

However, removing the human touch might leave some nostalgic, but it certainly will lead to greater monetary buildup as consumers make decisions based on data, rather than a handshake. The one of the many core issues is the ability to cope up with several ways we access services. There is so much of information to be collected. So going online and acquiring it would be much easier.

Not that, technology cannot help with that; of course it does, for example, service providers have started using video conferencing to put remote financial advisors just a click away for customers – anytime – anywhere. Accurate numbers are yet to be published; however; there is a double-digit improvement in customer net satisfaction and two-third improvement in new business. This is really promising, isn’t it?

Digital interactions change relationship

The one thing that a banking and finance provider should do is to create a digital relationship with customers by going out of the way and helping them beyond online/mobile transactions such as payment and transfer. Customized tools should help the decision making process of consumers, and not just support routine transactions. Your technology based financial tools should help people save their time, money and help them spend more wisely based on their financial situation and share options based on similar customer choices.

Technology can make wonders, provided used accordingly. The tech-savvy users are likely to go full swing on online by 2020. There is so much to be up with. They hardly have patience to put up with traditional banking operations. To survive and cope up, you need to digitize. Bring software that can predict and analyze their need, software that can make things simple for them to operate online.

Chirag Shivalker heads the Content team, at Hi-Tech ITO. Sharing and learning interesting information about WordPress customization tips & traps and technologies - is what he cherishes