Why All of The Interest in Digital Now?

Financial Institutions and their customers have been engaging in Digital Banking for decades, which leads to the obvious question of why all of the interest now in digital banking?

Well, for one thing, until recently, most banks’ attempts at “Digital strategy” have often been reactive and inconsistent.

In the past, banks’ IT departments have generally taken the lead for implementing digital technology to streamline processes, cut costs, gain efficiencies, etc. But these enhancements primarily benefitted the banks’ interests.

And if, along the way, the customer experience was improved, that was considered lagniappe. But it was NOT the banks’ main goal.

And up until the last decade, the only way customers could communicate directly with their bank was through the branch, by mail, through the call center, or the ATM. But recent advances in Digital technology have changed all of that.

In particular, the personal computer, the Internet, high-speed broadband connections, wireless technology, and mobile devices have now enabled customers to dictate to businesses the manner in which they (customers) choose to interact with the businesses (Remember the Lending Tree commercials where banks compete for customers’ business?).

As a result, some visionary entrepreneurs have launched hugely successful “virtual” businesses (no physical storefront or inventory) built on the operating concept of leveraging digital technology as their sole means of engaging in commerce with customers. This has turned the entire merchant/customer relationship on its head. So, in order to compete in a rapidly changing marketplace, traditional brick and mortar companies are now responding at breakneck speeds to catch up with their digital competitors.