You can’t be a successful person if you don’t take lessons from 2020. In 2020 we faced so many unexpected challenges. So, a wise person learns from hardships. But it’s a reality that we can’t predict life; we shouldn’t shut our doors to new ideas. If we look around, then technology is everywhere, and a wise businessman is the one that continues the learning journey. For instance, every day, try to find creative solutions that can change the economic environment. However, like other industries, financial brands need to reshape their ways according to the digital and social media revolution.
Why is digital transformation necessary for financial brands?
Earlier, we discussed how different industries changed their business methods during a pandemic. For instance, during COVID, everything went online, and companies adjusted according to a new normal. Apart from this, the following stats are enough to prove the importance of digital transformation:
“In 2021, we saw a massive surge in the demand and usage of digital means. More than 97% of executives formed their tech adoption strategy.”
But this digital transformation needs to happen soon, and employees need to re-skill themselves. In the banking sector, 65% of firms are waiting for skilled employees, and it’s a big hurdle in their growth. If employees are well informed, it will help financial brands make informed decisions.
Best key learnings for financial brands in 2022:
Financial brands are one of those industries that faced so much anxiety during the pandemic. So, now it’s critical to bring rapid changes because of the needs of the markets. Here are the following key learnings that are crucial for financial brands to adopt in 2022:
Financial brands should focus on reputation:
The financial industry needs to understand that now customers are everything. For instance, one wrong word of mouth can ruin a whole reputation in the market. So, it’s crucial to bring a more customer-centric model. Now the markets are captured by Generation Z and millennials; that’s why financial brands will have to change practices. According to a survey now:
“64% of Generation Z and 55% of millennials are ready to spend on institutes that provide more sustainable services.”
So, people prefer companies ready to take responsibility for their products and services. But financial institutes are way behind in these qualities; they should start working on goodwill urgently.
Focus on self-service & digitization:
Now baby boomers also have entered the market and made the industry fascinating. Apart from this, generation Z and millennials are looking for self-service and digitization in financial brands. Now people don’t want to get physical with customer representatives. So, setting up online portals for customers and employees is a good idea. For instance, banks can take the help of paystub makers to keep track of employees’ income and tax deductions. These are small yet vital things that can boost trust. Recently independent sources conducted a survey and found these results:
So, the stats indicate that the industry needs incredible innovation and creativity urgently. If the trust level is higher, financial brands can easily track imputed income.
Evaluate your team:
Everyone knows that the workforce plays the leading role in boosting growth and profitability. So, it’s crucial to ensure that you have a good team that can handle challenges and management. However, you can take the help of different online assessment tools to make these evaluations. In this way, you make your brand inevitable and can freely design customer-centric strategies. According to the Deloitte:
“More than 80% of financial brands are now focusing on employee safety and well-being.”
In addition, 52% of banking firms are ready to spend on employees’ mental health and well-being support.
Use AI in the processes:
We know it’s time-consuming to see a revolution in any industry. But now, it has become crucial to add Artificial intelligence to the procedures. AI has the potential to add $1 trillion in annual sales. So, it means there are no signs of slowing down in the future, and more than 50% of respondents said their companies are adopting AI. Apart from this, here are the following benefits of practicing AI in the financial business:
AI helps in smart risk management by automating the tools and processes. Moreover, it is backed by real data that help to build a more effective business structure.
The POINT of SERVICE LENDING (POS) uses AI to complete the transactions on time. Besides, it helps in quick lending approvals and insurance quotes and boosts customer satisfaction.
Furthermore, artificial intelligence enables you to offer personalized services in the financial industry. The AI technology analyzes data faster, and later, you can use this information in designing customized offers.
Don’t ignore social media:
If we look at the stats, around 81% of the US population uses social media. The baby boomers, millennials, and generation Z spend about 4-5 hours using social media apps. So, while making the marketing strategy as a financial institute, you shouldn’t ignore this vital stream. Social media apps help build brand trust, create marketing opportunities, and grow the customer base. Apart from this, the online mediums cut down the cost of customer service by up to 70%. So, it could bring a disastrous change in organizational growth and profitability. But you need a few things like storytelling ability, content writing, and creative humor to add value to customer life.
It is another life-changing tip that helps to make processes easy and quick. Today, many industries use automation tools to make life easier and less time-consuming. For instance, JP Morgan uses bots to respond to IT access requests. In this way, the organization cut the cost of 40 full-time workers, which is a great thing. Many banks now use automation to create customized solutions, data, and dashboards for customers.
If there is one life-changing technology, it’s safe to say it’s artificial intelligence. AI has given the banking sector and financial industry the urge to creatively meet the customer’s needs and demands. Moreover, the technology helps save time and money, making it more convenient and safer.