Banking sector in USA Archives - Business Intelligence

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Emerging trends in banking

Coping with emerging trends in retail banking 2020

Although many have predicted the doom of traditional retail banking with the rise of new entrants especially in fintech that focuses on superior customer experience, we believe that traditional banking companies still have a bright future. The emerging trends in retail banking such as AI and RPA are aimed at enhancing customer experience and matching performance with that of innovators in the banking industry. Apart from these, we can also expect several transformations in the approach and operations of banking companies. Infiniti Research has worked with dozens of banking companies across the globe and played a pivotal role in helping them to adopt agile business strategies to survive the dynamic market conditions. Based on our observations and expertise, here are some of the emerging retail banking trends that players need to be prepared for in 2020.

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Emerging trends in retail banking 2020

Emerging trends in retail banking

Reorganizing around customers rather than products or channels


In 2020, an interesting emerging trend in retail banking that we can expect to see is that banks will gradually move their focus away from products and services and begin organizing themselves around creating exceptional customer experiences. They will aim to develop the ability to view customers as a single unit by recognizing their uniqueness and tailoring offerings to suit their needs rather than being ‘pushy’ to buy banking products or avail different services.

The growth of social media

Social media is not just one of the emerging trends in retail banking, but it has become widely popular across industries. In 2020 and beyond, retail banking companies will embrace social media platforms as a primary source to connect, engage, inform, and understand their customers. It is also expected to become an important platform where customers research banking products/ services and make a purchase decision. Mastering social media capabilities will be a core competency for retail banking companies to cope with the emerging trends in retail banking.

As the pace of change is increasing in the retail banking space, companies must ensure that they are well positioned to align with the emerging trends in retail banking. Get in touch with an expert to learn how we can help you stay updated and cope with the retail banking trends.

Cybersecurity in building customer trust

Security of transactions is one of the most crucial factors that banking customers consider while choosing their banking partner. To avoid cybersecurity glitches that have occurred in the past, we can expect to see several top banking companies investing heavily into preventing cyber-attacks. This year onwards, you can expect to see leading banks develop cyber-security strategies that are aligned with their business objectives, risk-management protocols, and regulatory requirements. Since several retail banking companies lack the ability to tackle this issue, they might partner with third-parties to provide cyber-security assistance.

Two factor authorization to become common in transaction authorization

Although biometrics is believed to be unique, it can often be replicated and can result in fraud. As a result, two factor authentications will soon become mandatory and one of the most notable emerging trends in  retail banking industry. This means though retail banks will allow fingerprint or voice recognition in transaction authorization, it will remain tied to a replaceable physical device such as a smartphone.

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Banking sector

Understanding Evolving Business Models and Market Opportunities in the US Banking Industry – Market Intelligence Engagement

US Banking Industry

The US banking industry is undergoing radical transformations due to evolving business models, security challenges, mounting regulations, and disruptive technologies. Also, with the rising competition in the US banking industry, the traditional branch-based model is no longer helping banking companies to sustain a leading edge in the market. This necessitates banking companies to rethink the way they do business. Also, undertaking a market intelligence study is becoming imperative for banking companies to understand market transformations and adapt to the fast-evolving marketplace.

Wondering what are the key trends, opportunities, and challenges that may affect business operations and strategies of companies in the US banking industry? Our custom market intelligence solution can help you gather comprehensive insights into the US banking industry. Request a FREE proposal!

Business Challenge

The client is a banking company based out of Germany.

Our client, a leading banking company, wanted to set up a new office in the United States. Before expanding to the United States, they wanted to gather comprehensive insights into the US banking industry and understand the competitive landscape. In addition, they wanted to understand the business challenges in the US banking industry and identify lucrative market opportunities. They approached the experts at Infiniti Research to leverage their expertise in offering custom market intelligence solution.

Other challenges faced by the company were:

US banking industry challenge #1: Optimizing the mobile experience

With the proliferation of smartphones and other associated devices, customers in the US inclined more towards banking online. This necessitated US banking companies to have a mobile-friendly banking experience to retain current customers and acquire new ones. The client, therefore, wanted to identify the business models gaining popularity in the US banking industry.

US banking industry challenge #2: Security and authentication

With security breaches and identity threats rising in the US banking industry, undertaking safety and security measures were becoming paramount for banking companies to enhance consumer trust. Therefore, before expanding to the US, the client wanted to understand the strategic safety plans undertaken by the top companies in the US banking industry to ensure the safety of their customer’s financial data.

US banking industry challenge #3: Rise of technology disruption or FinTech

As FinTech companies displaced some of the profitable financial services of traditional banks such as financial advising, loan, and money transfer, they posed major challenges for companies in the US banking sector. The client, therefore, wanted to understand the alternatives undertaken by the top companies in the US banking industry to tackle this challenge.

Our market intelligence solution can help you tackle the above-mentioned challenges and gain a leading edge in today’s competitive marketplace. CONTACT US today!

Solutions Offered

The experts at Infiniti Research conducted a market research study of the US banking industry. The factors such as market developments, technological advancements, opportunities, and evolving industry regulations were taken into consideration. Also, our experts conducted a risk assessment study, where they analyzed the operational and security risks impacting companies in the US banking industry. This phase of the market intelligence study helped the client to undertake risk mitigation approaches to tackle the rising industry risks and security threats.

Our experts also conducted a market trend analysis. In this phase, the experts at Infiniti Research helped the client to identify all the latest trends in the banking sector in USA and prioritize them based on their profitability for the company. Lastly, by conducting a competitive intelligence study, our experts helped the client to analyze the top ten companies in the US banking industry. In this phase, factors such as competitors’ banking models, risk mitigation approaches, and other strategic alternatives were taken into consideration.

Results Obtained

By leveraging our market intelligence solution, the client was able to understand all the latest trends that were gaining popularity in the banking industry in US. Also, they were able to gather comprehensive insights into market developments, opportunities, and challenges. Furthermore, they were able to adopt a customer-centric banking model and gain a leading edge in the US banking industry. In addition, by undertaking strategic safety plans for protecting customers’ financial data, they were able to enhance customer trust and acquire new customers.

Our market intelligence solution further helped the client to gain a leading spot in the US banking sector and enhance market share by 31%.

banking

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Banking sector

Winning in the German Retail Banking Battleground with Customer Experience Strategy

Modern consumers expect exceptional services and frictionless buying experiences irrespective of how big or small the product that they intend to purchase. When it comes to the retail banking sector, digital disruptors and fintech firms often succeed in delivering an enhanced customer experience (CX) when compared to incumbent banking companies. Although the importance and prominence of retail banking companies will not die down anytime in the near future, customer expectations from banking is not the same anymore. As a result, incumbent banks are increasingly reevaluating themselves on how they perceive customer experience and what needs to be done to meet the changing customer expectations.

Giving customers a supportive, hassle-free, omnichannel experience is a must for banks in today’s changing environment. Request a free proposal to know how our solutions can help you achieve this.

German retail banking companies overview

The German retail banking sector faced a rough ride during the financial crisis. While some banks almost drove off the road, others managed to stay on track, allowing them to overtake their competitors. However, the road ahead remains unclear for German retail banking companies. Innovative trends are shaping new traffic patterns, putting additional pressure on all types of banks, even those that are in decent shape today. The next five years will be crucial for the German retail banking sector to decide which turn to take to avoid a dead end. The German banking market has a unique three-pillar structure of private, savings, and cooperative banks. This distinguishes it substantially from banking sector companies elsewhere. German banking is also characterized by its strong dependency on net interest income, an extensive branch network, and a prudent risk profile. The long-term profitability is of German retail banking companies are low compared to global peer markets, and German banks have difficulty earning their cost of capital due to factors including high competition, low prices, and lack of focus on customer experience.

Trends shaping German retail banking sector

Retail banking sector

What are the common pitfalls that retail banking companies encounter in CX?

Most of the companies in the German retail banking sector have ample room for improvement when it comes to enhancing customer journeys by improving the overall customer experience. As customers are gradually changing their perception of an ideal banking experience, German banks must attempt to adapt. We have seen banks across the globe enthusiastically embrace the value of improving customer experience only to step into common pitfalls. Here are some ways to avoid missteps and set your customer experience strategy up for success.

Focusing on isolated touchpoints

Customer experience is often misunderstood as customer pain points that needs to be addressed. While these efforts are certainly vital to improve the overall customer experience, focusing only on these factors leads companies in the retail banking sector missing out on the root cause of these pinpoints. Furthermore, simplistic solutions that have been merely copies from competitors could sometimes prove to be misleading. Customers who rate single points of contact as satisfactory often tend to rate the whole journey as a negative experience. In such cases, these customers are less likely to become the engaged, valuable customers that banks strive for.

Customer experience is a powerful way of bringing tremendous value to a retail banking sector company’s business. Get in touch for more insights on how our solutions can help you enhance your CX and create a positive business impact.

Ignoring key customer journeys

Once banks in the German retail sector have realigned their thinking toward holistic customer journeys, the next step is to map their customer journeys and figure out which ones are most critical to business. This includes taking into consideration factors such as the areas of improvement, factors that could have an impact on brand image, and other value considerations. For improving critical journeys, banks should determine what degree of improvement will make the most economic sense and generate the most value. German Retail banking sector companies must arrive at a decision on how much needs to be invested to create that “wow” experience for customers and whether the effort is worth it, given the expected additional revenue.

Choosing right customer segments to prioritize

Direct banking companies often show the highest customer satisfaction levels when compared to big private banks. Corporative banks, and savings banks. This is because the latter has a more diverse customer base with a range of differing needs, making it harder to provide superior service across the board. This necessitates banks to identify their various customer groups and determine how important each is to the bank’s business. The value of a customer to a bank can vary based on the product or service being offered and can be measured by number of products, loyalty, credit, or future financial opportunity. Companies in the German retail banking sector need to understand the needs of each group in detail and target the segment with an exceptional and differentiated experience across the end-to-end customer journey.

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