Key Banking Trends Transforming Financial Services

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As technology has changed the world around us, the banking industry has undergone a transformation of its own. From automated banking to mobile deposits, we’ve seen many changes designed to keep up with the demands of the times. By taking a look at history, we can make a better estimation of what the future holds for the industry as a whole. Purepoint Financial seeks to bring the most innovative solutions for our clients and while we offer some of the services mentioned, some may be farther on the horizon. Here are some of the key trends poised to transform the retail finance industry for years to come.

Mobile and online banking

To deposit a check or pay bills, many of our customers join the rest of the country in taking advantage of mobile banking. Where does mobile banking fit into peoples' lives? According to a recent survey by Accenture, the top three reasons for using mobile banking are to make a payment, deposit a check and view a past transaction. But, mobile banking hasn't caught on for everyone. Accenture found that 35% of consumers don't use their smart phone for their banking needs.
Using a computer instead of a phone is also a big trend in banking, and 60% of those surveyed go online weekly for personal banking purposes. Clearly, using alternative means of banking will continue to grow as a trend in the future.

Getting more value

The simple fact is that people want to know they're getting good value for their money. In banking, for example, consumers are willing to stay loyal in exchange for the bank providing extra value. In general, that might materialize through discounted loan rates and excellent reward programs. Of those customers enrolled in banking loyalty and rewards programs at various banks, Accenture found that 41% want cash back or open loop pre-paid cards, which are branded cash cards that can be used at any merchant, not just a gift card valid at one store. You can expect to see more of these types of programs throughout the market as online banking evolves further.

Personal touch and service

While the convenience of online banking is here to stay, banking customers are also expecting more from the services they receive. Of those, the option for a personal interaction is still key to many people. In fact, 87% want human interaction, according to Accenture's study, proving it is still an important part of the banking experience. Our Client Support Specialists provide our clients with the exceptional experience they deserve and expect.

Data-driven services

By law, banks started sending privacy notices to you in 2001, allowing you to opt out (subject to certain exceptions) of sharing your information with companies outside of the bank's corporate family. While some customers find this advantageous, 63% of banking customers want their personal data to work for them, according to Accenture. These customers find value in having banks use their data to provide them with relevant financial offers. This trend may continue in the future to allow banks to offer better pricing, customized services, personalized advice and offers based on location.

Chip card technology

You may have received a new credit card from another bank recently and noticed a small metallic chip on it. This technology provides greater financial security, and decreases the risk of fraudulent use of the credit card. Every time you use the chip in the card, it sends individual transaction data to the credit card company, which can't be used again by anyone, including a thief.
It's clear that banking will continue to evolve as trends change in society. What hasn't changed, however, are the staples of how institutions can help meet your financial needs. Whether it's putting your money in a high-yield account where it will work harder for you, or finding the right personalized services for your needs, the banking industry is here to help you stay on the best financial path possible.

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