44 MARCH / APRIL 2020 A Banker’s Guide T0 top strategies of 2020 DIRECTORS / SENIOR MANAGEMENT It’s an exciting and challenging time for financial institutions. Banking has officially entered a new decade, spurred by innovative technologies, a digitally focused consumer and the age-old benchmark of becoming competitive, compliant and profitable. But how will banks get there? To understand how bankers will prioritize their digital and in-branch strategies, compliance concerns, cybersecurity defenses and technologies in 2020, CSI polled banking executives nationwide, representing 227 financial institutions from across the asset-size spectrum. The data from this survey was then collected and used to create an executive report to help bankers get a pulse on the industry’s hot topics and strategies. Bankers’ Self-Assessment Bankers were asked to kick off the survey with a reflective question: How would you rate your bank’s 2019 performance in key areas on a scale from 1 to 5, with 5 being the highest? • Customer Retention and Compliance: above average. Bankers gave themselves high marks on two of the most important areas for bank profitability and safety and soundness: customer retention (4/5) and compliance readiness (3.9/5). • In-branch and Digital Experience: room for improvement. At 3.5/5, bankers report they are providing a good (enough) in-branch experience for their customers. Fewer (3.3/5), however, indicate the same about their digital experience, by which more and more customers prefer to bank. • Customer Data Management: less than stellar. Collecting and utilizing customer data is by far the greatest challenge for bankers in 2020 (2.5/5). Recognizing this deficiency should drive institutions to more effectively leverage customer data – whether held by themselves or their vendors – to create new revenue streams. Attracting Customers Through Technology More and more retail and commercial customers are demanding a seamless banking experience. It isn’t just the centennials and millennials – Gen Xers and baby boomers also want immediate access to bank products and services. Financial institutions will need to leverage technology to meet these expectations if they want to retain existing customers and attract new ones. The CSI survey asked bankers to rank the technologies their institutions will use to attract new customers. The results? Bankers are digitally focused: 1. Mobile Banking Apps: Bankers know their mobile app is the best way to attract new customers. Given that a mobile app puts your bank directly in the hands of consumers, enhancing its functionality is a smart way to secure and increase your customer base. 2. Digital Onboarding: Unless you provide new customers with immediate access to your bank and their accounts through digital onboarding, it will be difficult to remain competitive in today’s landscape, much less tomorrow’s. 3. Customer Relationship Management: Institutions making good use of their CRM can leverage customer data to proactively offer beneficial products and services to customers, even before they realize they need them. 4. Digital Lending: Digital lending ranked the secSteve DuPerrieu Vice President of Product Management CSI steve.duperrieu@csiweb.com CSI Secure Connect and CSI WatchDOG Social Compliance are Preferred Service Providers of the Indiana Bankers Association.
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