Digital technologies are more powerful than ever and they continue to grow, transforming the way we see the world. Artificial intelligence, big data, block chain, digital payments, robot advisors, are just a few examples that are going to ease consumers’ financial experience. However, digital transformation is not just about introducing more technology, it is also about reimaging the relationship between financial organizations and customers.
Nowadays, most banks fail to capitalize on their investments in digital marketing and digital channels. Research shows that only 66% of personal banking products were deemed ready for online sale and fewer than 25% of wealth and business banking products were found to have online applications. Bankers have also unwittingly erected barriers that prevent certain customer categories from fully utilizing mobile and online banking services. Three big categories which must be taken into consideration when redesigning digital strategies, are seniors, non-native people and also Generation Z.
Globally, the number of elderly people is growing faster than are all younger age groups. According to data from World Population Prospects: the 2017 Revision, the number of older persons, aged 60 years or over, is expected to more than double by 2050 and to more than triple by 2100, rising from 962 million globally in 2017 to 2.1 billion in 2050 and 3.1 billion in 2100. Seniors represent 16% of the whole world population and they are about to become one of the most significant drivers of social transformations in the twenty-first century, being seen as increasingly important contributors to development.
Seniors perform less well than younger adults in complex tasks that require them to learn new skills or new information. Also, because people change cognitively as they age, the financial decision-making capabilities change as well, so ease of use and client experience go hand in hand. In other words, the easier you make it, the better their digital experience. Redesigning a website to give seniors the same user experience quality as for younger users, could easily result in a 35% lift in business. Research shows that by 2020 different business models (including Fintech) could impact up to 80% of existing banking revenues.
As a conclusion, banks have a number of obstacles to overcome. In a society where technology progresses at an exponential rate, banks should investigate all issues, understand older users, their engagement and level of effort with retail banking and design solutions around people’s specific needs. With EAS now you can assess the impact of effort on the overall customer experience and diagnose specific pain points throughout the customer journey, delivering actionable customer insights that increases your customers’ loyalty and retention rate. Read more about EAS here.
Are you ready to embrace the new digital wave?
Unites Nations. 2017. World Population Prospects – Key Findings and Advance Tables: 2017 Revision
Big Window® Consulting Ltd. 2017. The Aging Population: Aging Mind Literature Review Report
The Financial Brand. 2017. Building Banking Websites for Boomers (and Millennials too)