In some ways, consumers’ switch to digital banking is already complete. Satisfaction levels with the majority of banking transactions are falling, a direct result of the increasing demand for speed and convenience by consumers. As many today now see digital options as better, faster alternatives to physical banks, which are becoming more and more irrelevant to consumer’s lives.
Lifestyle banking turns this trend on its head a bit, going beyond simple digital tools to check balances, process transfers, and issue payments. It weaves financial institutions into consumers’ lives through new digital features and offers, personalized services, and timely insights that help consumers strategize and plan major financial decisions.
Two-thirds of banking customers say they would share more data if it led to new benefits, creating a large opportunity for banks to engage customers on a more personal level. But to seize this opportunity, banks will need a dedicated customer experience team to develop a customer experience strategy.
At a minimum, this team will regularly speak to customers to gather insights about desired features and services. They will also develop customer journey maps to help stakeholders understand how customers interact with specific service, offers, and channels, such as a bank’s
mobile app or branch locations. Paired with proprietary consumer data, this team can decide if chatbots, personalized advisory services (i.e. setting goals and tracking progress), or self-serve kiosks—among a number of other improvements—might be worth the investment.
In simplest terms, lifestyle banking uses technology and consumer data to identify new opportunities—ones that take a holistic view of a consumer’s lifestyle to solve timely pain points or create delightful experiences. Banks that have adopted this customer-centric approach to improve design, streamline processes, and automate for efficiencies have increased revenues by 25%.