According to Juniper Research, the number of digital banking users will increase significantly 54%, approaching 3.6 billion by 2024 from the reported 2.4 billion in 2020. This figure not only depicts a shifting trend, but it also highlights a strategic requirement for conventional banks.
Banks are being pushed to consciously mix their well-established legacy capacity with the needs of the digital era to compete with their business rivals.
Conventional banks are at a turning point, and this apparent moment offers an invitation to push themselves toward a digitally powered future. The formerly reluctantly addressed digital transformation has now become a pressing issue, emphasizing the need for conventional banks to make a firm commitment and deviate from established legacy structures, delving into the dynamic arena of digital innovation, to ensure their future relevance and success.
A Triad of Essential Benchmarks
In 2024, conventional banks will be pushed to raise their standards in three important areas. The first essential is a customer-centric approach, highlighting the need to put the consumer first on the digital transformation path. It goes beyond just fulfilling expectations; conventional banks must seek to surpass them, borrowing inspiration from their digital-native rivals’ seamless, tailored services. Understanding and anticipating customers wants should be the driving force behind every digital endeavor aimed at altering service delivery tactics.
The second critical pillar is agility in response to market dynamics. Conventional banks must overcome any inertia that is impeding quick decision-making and adaptation. The capacity to adapt quickly to market trends, regulatory changes, and consumer requests is critical. This agility not only develops resilience but also positions conventional banks as dynamic actors in an industry that is always changing, ensuring they stay flexible in the face of changing difficulties.
The third need for conventional banks is technological innovation. It is no longer a choice but rather a need for survival in the fast-paced digital world. It is non-negotiable to actively seek out and integrate cutting-edge technology into operations. Embracing modern technology, from artificial intelligence and machine learning to blockchain and digital payment systems, significantly improves operational efficiency. Beyond that, it opens up new opportunities for expansion and client involvement, moving conventional banks into a future where tech-savvy innovation is essential to success.
Strategies for Manifesting a Digital Future
Embarking on a digital future necessitates a methodical and forward-thinking approach. In 2024, conventional banks aiming to redefine their strategies must consider key strategies for success. Leadership, vision, and empowerment emerge as foundational elements. It is imperative that leadership not only communicates a clear vision for the digital future but also fosters a culture of innovation, collaboration, and continuous learning, establishing a solid foundation for the transformative journey.
Strategic evolution in the digital era involves recognizing the power of collaborative partnerships. Conventional banks should actively seek alliances with fintech companies and tech innovators to expedite their digital transformation. Such collaborations offer access to cutting-edge technologies, fresh perspectives, and agile methodologies, enabling conventional banks to navigate the complex landscape of digital innovation with greater agility and efficiency.
In the quest for a digital future, a central focus should be on customer-first digital initiatives. Conventional banks must invest in initiatives that prioritize the customer experience, from intuitive mobile apps to personalized financial insights. Placing customers at the forefront of every digital touchpoint is pivotal, reflecting a commitment to meeting and exceeding customer expectations in the dynamic and evolving digital landscape.
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