The Modular Future

February 8, 2016

Digital platforms are radically altering the industry’s value chain

The Growing Pains of Business Ownership

February 4, 2016
/   Insights

This article by Stefanie O’Connell first appeared on stefanieoconnell.com in November 2015. Confession – I’ve made a major mistake in growing my business. Though my earnings have climbed exponentially over the past two years, I found...

The benefits and challenges of the Internet of Things

February 3, 2016
/   Insights

The convergence of operations technology and information technology presents new and expanding market opportunities. The “Internet of Things” is a center point of this convergence. IoT can bring remarkable benefits to today’s ever-changing business...

Mobile Banking Surprises Yet to Come

It had to happen, and apparently it has: In the year just passed, according to the new report “2015 Mobile Banking, Smartphone, and Tablet Forecast” from Javelin Strategy & Research, 30% of customers used...

Cause and Effect: If you build it, will they come?

July 23, 2014
/   Spotlight

Many financial institutions assume that digital banking is lucrative because the most valuable customers happen to bank online. While there is certainly a correlation between online bankers and higher profitability, quantitative evidence suggests that...

Intuit 2020 Report: The Future of Financial Services

April 11, 2011
/   Insights

Today, Intuit released the latest edition of the Intuit 2020 report, Intuit 2020 Report: The Future of Financial Services, which identifies and examines four key trend areas that will  transform the financial services industry...

Fast Facts: Student Loans

January 22, 2013
/   Insights

The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more.  Below are some updated Fast...

The Top 10 Trends in the Digital Banking Industry

December 18, 2013
/   Spotlight

2014 is rapidly approaching and as the year wraps, the Digital Insight team has pulled together the top 10 trends in the digital banking industry based on data and trends from studying financial institutions....

Making Banking Fun: Gamification in Financial Services

August 5, 2013
/   Insights

Recently, the Banking.com team sat in on American Banker’s webinar, “Gamification in Financial Services: Five Proven Ways to Get an Edge,” which shared how leading brands in financial services have applied gamification to reach...

Technology M&As: The Beats Go On

May 29, 2014
/   Insights

The ongoing fascination with Apple’s $3 billion purchase of Beats Electronics is entirely understandable, because it’s a cool story. However, it also says a lot about what’s going on between finance and tech.

What We’re Reading

May 5, 2011
/   Spotlight

Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below. Virtual Banking Worlds Provide Tangible Lessons American...

Small Business: Perception vs. Reality

November 21, 2012
/   Insights

In the most recent election cycle, like most others before it, the one sector of the economy that got the most attention was small business.  This is the future, we were told by every...

What We’re Reading: Thanksgiving Edition

November 22, 2012
/   Spotlight

Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below or Tweet @bankingdotcom. Mobile Thursday? Plans for Thanksgiving...

By Dominic Venturo, Chief Innovation Officer, U.S. Bank

New technologies and the growing number of mobile devices have prompted banking institutions to rethink their traditional way of doing business. Transactions are rapidly shifting from branches and handshakes, to apps and fingerprints, maybe someday even an iris scan. But just because the technology is available, does it mean we should use it?

According to a recent survey by U.S. Bank, “The Balancing Act: U.S. Bank 2015 Outlook on People and Technology,” 70 percent of consumers across all generations believe that banks featuring the latest technology are more trustworthy, yet 63 percent said they will never make all financial transactions digitally.  “Never” is a strong position to take.  This push-pull with technology demonstrates that despite headlines, when it comes to a personal touch, there’s no app for that.

Bank branches are not only viable, but vital at a time when there is an increased focus on customer experience and service. In fact, the survey found that nearly 90 percent of Americans will plan to do at least some of their banking at physical branches five years from now. While customer needs are certainly evolving, it may not be at the pace that some have predicted. As we continue to develop new apps and gadgets, we must remember not to innovate simply for the sake of innovation, but to develop new solutions for real issues facing our customers.

At Your Service

So why do Americans want to maintain some interactions offline? The answer is simple, customer service. The survey shows that nearly 80 percent of consumers fear poorer service if their bank switched entirely to digital interactions. Does this mean that customers won’t use or appreciate technology-enabled solutions that help make their financial lives easier? Of course not.

At U.S. Bank, we know that banking is not a cookie-cutter industry; and not all issues can be resolved with a virtual agent.  Our customers have unique situations and need personalized service. In fact, 80 percent of Americans said they prefer working with a professional banker instead of a virtual one to resolve issues.

They also rely on banking relationships to help guide them through critical issues when the stakes are at their highest, such as:

  • Buying a home (50%)
  • Starting a business (39%)
  • Establishing credit for the first time (29%)
  • Retiring (24%)

As the industry moves forward, we need to view technology as a way to connect with people – not to replace them.

Finding a Balance

As fintech firms, mobile payment providers, and startups begin to replicate banking functions, traditional banks will differentiate themselves in ways technology alone cannot – with the human touch. At U.S. Bank, we realize value is shifting away from merely banking services and moving toward building and maintaining deep customer relationships. For banks, this will soon be a major differentiator.

Consumers are challenging the industry to meet their demands, requiring a delicate balance between convenience, security and personalized engagement. However, while consumers appreciate the flexibility of new technology for routine transactions, human interaction remains the core to banking relationships.

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Insights

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Spotlight

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Voices

Compelling voices and contributed content from around the web

James W. Gabberty

Gabberty is a professor of information systems at Pace University in New York City. An alumnus of the Massachusetts Institute of Technology and New York University Polytechnic Institute, he has served as an expert witness in telecommunication and information security at the federal and state levels and holds numerous certifications from SANS & ISACA.

Zachary Ehrlich

25-year-old writer, and as a native San Franciscan, I am unreasonably loyal to Bank of America, if only for their superhero-like origin story, involving the 1906 earthquake and Italian fruit vendors.

Brad Strothkamp

http://www.forrester.com/rb/analyst/brad_strothkamp

Marisa Mann

Marisa Mann brings over 15 years of experience in consulting and financial services industries to the Solstice team, working on large scale enterprise initiatives across many technologies, including specializing in the digital space – Internet and mobile. Mann is passionate about mobile and the endless possibilities for the enterprise, delivering business value through strong brand recognition and driving to excellence in the consumer experience. Prior to Solstice, Mann worked at JP Morgan Chase, Diamond Management and Technology Consultants, Washington Mutual, Inc, and Accenture.