Portions of this article originally appeared in CBinsight.
Where there are consumers, there is technology. The two are essentially inseparable. Much of consumers’ day-to-day activities are facilitated through mobile devices. Consumers shop online, tap to pay and control their thermostats from these devices. Banking is just one more facet to consumers’ digital lifestyles.
To meet, and even surpass, consumers’ increasingly greater demand for digital solutions, community financial institutions (FIs) must understand the value of technology and its uses. FIs should focus on how they can leverage technology to supplement their existing expertise. In fact, technology may just be the edge FIs need to turn good consumer experiences into great ones.
When planning their technology strategies, FIs should keep the following things in mind:
- Recognize your true north. Your strategic aspiration and value proposition should be central to any new plans. Look at technology as a means to solve complex problems aligned with your core competencies.
- Collaborate to innovate. Start by engaging your technology team in strategy-planning sessions. Then explore resources beyond your own organization. Participating in events and discussion groups, like Filene’s REACH Innovation Group, can spark new ideas. One of TMG’s Client Business Executives, Chris Olson, was recently awarded the opportunity to participate in this group.
- Work wonders with immersive technologies. Technologies such as robotics, augmented reality and geofencing help create “chemical memories” with consumers, making them more apt to return to your FI.
- Anticipate consumers’ needs. Optimal consumer service revolves around the ability to provide products and services consumers want or need before they realize they want or need them.
As an added incentive for FIs to offer a variety of digital services, recent research correlates tech capabilities with asset growth. A study by MagnifyMoney found FIs with the highest digital adoption scores grew their assets much faster (16 times faster, in fact) in six months than those less likely to adopt new digital technologies. This is good news for tech-savvy FIs.
WHAT IT MEANS:
To truly make the most of technology, FIs should avoid the temptation to offer the latest “cool” apps or widgets. They should instead focus on their strategic aspirations and then invest in the technologies that will help them reach the right consumers.
