When Megabanks spend roughly $25 billion annually on technology alone, what can Financial Institutions (FIs) without partners or deep pockets do to keep up?
By outsmarting, not outspending the Megabanks. These approaches can help credit unions and banks stay competitive in today’s market.
Innovate with security in mind
Innovation is hard work and by definition will disrupt your existing status quo. You’ll need two things as you embark on this new road: a partner and confidence that you selected the right one. However, concerns over adapting quickly to security and innovation are what tend to make confidence in technology vendors wane.
When FIs face up to 30 billion credential stuffing attempts annually and lose an estimated $16.8 billion from security issues, securing users’ personally identifiable information is more important than ever. But security and innovation can inform one another. The need to protect FIs’ portions of the 25 billion email and password combinations out there has driven new developments in biometric authentication and digital identification.
Are you able to keep logging in as simple and secure for your users as the Megabanks? Maybe your next innovation users notice is in improving security.
Use banking data to grow confidently
The Megabanks don’t just set market pace with technology – they also have lots of banking data and know how to use it. The more proficient you are with data, the higher performing you, your team, and your FI can be. But how do you start using data if your FI has been slow to adapt?
Even if your data comes from a spreadsheet or disparate sources, simply begin using data to do your job. To excel at using data, get to know and use major business intelligence (BI) tools like Microsoft Power BI or Tableau. Download a demo and start playing around. You’ll learn to think in a data schema-driven direction and begin to see the importance of the data structure. Getting hands-on experience will help you see how data must be organized and normalized. That will help you get through to whatever you determine your next step to be.
Build a thriving digital banking community
We estimate there are about 327 million digital banking users today across all U.S. banks and credit unions. This number will grow for a few reasons, one of which is the migration of customer preference to digital channels. Another growth driver: FIs focused on growth through a thriving digital banking community are adding new customers. Most of those customers will be digital users.
If your FI is ready, it could also see the percentage of existing customers who use your digital channels increase. The users who would make up your community are there. But only forward-thinking FIs with a digital platform can build and maintain a thriving digital community worthy of your brand.