During the pandemic, the ways we accessed and managed our money transformed. To be sure, in-person banking was dropping in popularity even before the start of the pandemic, while digital platforms were seeing a slow and steady rise.
Although their popularity was beginning to wane, brick-and-mortar bank branches were undoubtedly still very much a part of many consumers’ financial routines. When the pandemic hit, the digital and traditional banking balance began a rapid shift. In 2020, 52 percent of bank customers went to branches to manage their money (or were branch-dependent), according to a J.D. Power survey. Only two years later, in 2022, more than 65 percent of U.S. bank customers were using digital banking services, per Bankrate.
The Challenges Digital Banking Poses to Consumers
With this evolution in omnichannel banking come unique obstacles and opportunities—especially for older adults. While more people in this age demographic are now using digital technology than ever before, a study by the Pew Research Center indicates that 25 percent of adults aged 65 or older don’t use the internet, 36 percent don’t have home broadband, and 39 percent don’t own smartphones. According to MX’s 2022 report on digital and mobile banking trends states that only 39 percent of Baby Boomers use a mobile app to manage their financial accounts.When this is considered, along with the 30 percent of American adults who struggle with technology and the economic barriers that prevent tech adoption, it becomes obvious that the digitization of banking presents challenges to many people.
Adoption & Implementation
Older adults, for example, often have to overcome ageism in digital tech. Because new digital devices and services generally aren’t designed with their needs in mind, they may find digital banking to be counterintuitive, overcomplicated, or physically difficult to use.
Building Trust
However, the tide might be starting to turn for digital financial services. With the benefits of lower fees and increasingly lower barriers to access, it’s perhaps not surprising that 61 percent of traditional bank users reported being somewhat or highly likely to switch to an online-only bank soon, according to the same Bankrate research mentioned above.
How Can Banks Offer Excellent Experiences to All Customers Post-Pandemic?
The tangible experience of walking into a banking branch and interacting with a human being might seem a world away, but it remains the norm for many people. Members of older generations, particularly, might rely on that physical experience of attention and appreciation as they navigate their financial lives.Here are a few effective ways to integrate human touches into excellent customer experience for consumers of all age groups:
Remember the Benefits of Human Interaction
It is essential that all businesses today understand that attentive customer service is more important than ever.
Don’t Let Up on Security
For these people, ramping up cybersecurity is even more critical. Anti-phishing methods and education (and the adoption of mandatory two-factor authentication) could help protect even more vulnerable users.
Prioritize Accessibility
Sometimes it can feel as though finance’s digital transformation has happened too rapidly for customers’ expectations to catch up. Fortunately, that catch-up work is happening now. As customers from all generations come to grips with mobile and online banking and what they can offer, banking companies can ease the learning burden by delivering secure and excellent personalized banking experiences. Don’t wait to get started.
The Epoch Times Copyright © 2022 The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
