Digital Banking Maturity 2024

In this edition, we have surveyed 349 banks in 44 countries on six continents and obtained nearly 4,500 answers.

5 key conclusions and considerations for Finnish finance sector operators with Mikko Helin and Tommi Mäenpää

1. Banks’ motivation to provide customers with full service in digital channels is a trend that is slowing down. More emphasis is put on the improvement of digital experience through redesigning channels used to reach customers. The strategic change indicates that the refinement of interfaces, simplification of processes and making digital banking more intuitive may significantly improve customer satisfaction and involvement.

When engaging with customers in the digital domain the key is quality over quantity. The expectation bar is set naturally high, and delivering a satisfying experience requires thinking end-to-end; from key moments to journeys to processes and back, Tommi Mäenpää says.

2. Banking leaders concentrate their activity on two key areas. The first group is involved in offering their customers a full range of key banking operations and fulfilling all financial needs, at the same time providing perfect user experience. Intuitive design and smooth interactions are prioritized to ensure customer satisfaction. The other group focuses on adding many new functionalities and providing comprehensive “super applications” that meet a broad range of needs on a single platform.

Regardless of which group you identify, the key question to ask is what creates you the competitive advantage with the target customer segments, and through that lens identify what the experience is you need to deliver and through what means. Many times, still banks end up developing their digital channels without a clearly articulated "north star" that is rooted in concrete business value to be captured, Mäenpää points out.

3. Currently banks are using Personal Finance Management tools to help their clients to effectively manage their funds. Additionally, they utilize personalized content and messages to adjust banking experience to individual needs. Besides, banks provide their customers with valuable advice prompting well-balanced finance management. These initiatives are intended to increase customer awareness, competencies, and satisfaction, enhance relations between banks and their customers, improve loyalty and increase the frequency of use of digital banking channels.

We see many local banks having basic personal finance management capabilities, yet this has been an area where there is little differentiation on how these are applied, brought forth and adopted into building a more intimate relationship with customers, Mikko Helin contemplates.

4. New areas, such as digital mortgages, are taking their place in the focus of current development initiatives. Although the process is often accompanied by manual analyses and real-world interactions, many supporting functionalities are introduced to digital channels throughout the customer journey, beginning from the development of the funding need, all the way through long-term post-sales support.

Digital touchpoints creating value for the user and for a bank are always dependent on the capabilities within middle- and back-office processes. Certain benefits can be introduced to end-users by utilizing “manual automation” behind the scenes, but to gain sustainable results the full chain of services needs to be digitalized, Helin says.

5. Checking cost optimization opportunities is now of key importance. Although improved customer experience remains crucial, efficiency of operations and cost reduction are necessary for sustainable growth. By increasing efficiency and using new technologies, such as GenAI, to reduce costs, banks may remain competitive at the same time ensuring long-term financial health.

As we see banks continue to provide even more (hyper) personalized services to customers, it is a fact that the current ways of working are just not viable. Processes need to be intelligently automated for added efficiency while balancing with necessary checks and controls. This will require new ways of approaching how work gets done and here we see, for example, LLM’s playing a role, Mäenpää concludes.

Do you want to learn more?

If you are interested in discussing in-depth analyses, or transferring the digital banking experience to other industries, you are welcome to contact us.