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How to Compete with Digital Banks

How to Compete with Digital Banks

Digital Banking is on the rise after necessary changes in 2020. You might be wondering—does that mean that brick-and-mortar banks are doomed to decrease? That’s a firm no! Community banking is all about catering the right products to the right audience. Keep reading to find out how you can compete with digital banks and continue to utilize your brick-and-mortar.

Let’s Define Digital Banking

The first way to compete in this new digital age is to define what exactly your bank is competing against. Online and Mobile Banking are associated with a brick-and-mortar bank, but Digital Banking is 100% online and has no brick-and-mortar. It relies on artificial intelligence (AI) to provide a personalized, digital experience to consumers. These banks have everything digitized, from money management services to opening a bank account or applying for a loan online.

According to Business Insider, “mobile banking is all but a requirement for consumers at this point.” Check out these numbers:

  • 97% of millennials use mobile banking

  • 79% of Baby Boomers use mobile banking

  • 64% of mobile banking users said that they would research a bank's mobile capabilities before opening an account

  • 61% say they would change banks if their bank offered a poor mobile banking experience

This tells us that every bank, no matter its size or location, needs to offer digital services. That doesn’t mean you need to get rid of your brick and mortar, but online and mobile banking are non-negotiable for banks in 2021 and beyond. These digital services will help you compete with Digital Banks, but let’s take it a step further to discuss how you can beat out the competition.

Take Advantage of Customer Service

Customer service is the biggest advantage community banks have over digital banks. While AI might be convenient for banking from start to finish from your phone, what happens when the chatbot algorithm can’t figure out what someone needs? The result: a very frustrated customer. Maximize your biggest asset by creating a hybrid online and in-person customer service program. This will help you cater to the crowd that prefers digital banking while also providing a superior customer service program to give them even more reason to choose you over a Digital Bank. Here are a few ways to take advantage of customer service:

  • Make it easy for customers to call you from anywhere on your website

  • Add a blog to your website to answer commonly asked financial questions and always add a link to contact customer service
  • Create an FAQ website page for questions your customer service team gets asked most often
  • Ensure your website has a mobile-first design
  • Consider adding an online chat option where they can speak directly to your team

If you need help capitalizing on customer service, just give us a call or fill out the form below! We have a team that specializes in web development and marketing for the financial industry, so you know you’re in good hands.