Banks have long been advised to try and make better use of the data they hold on individuals to offer more tailored and personalized products. But as the banking industry evolves, the insight that banks hold on individuals’ spending, borrowing and saving habits will not only be useful for banks themselves in offering the relevant products, but also it will put them in a position to play an even greater role in society. As banks embrace digital transformation, they will be equipped to provide much more than mere banking services.
Many banks offer innovative products and initiatives that actively seek to help customers better save money and manage their finances. Swedbank and Belgium ING for example offer their customers a unique way of managing all of their subscriptions such as utilities, Spotify, Netflix etc. in their banking apps.
However, as banks digitally transform their systems and restructure their operations to better cater for individual customer needs. Through using automation, banks also have the capability to simplify complexities. Banks are in the position to ensure their customers are optimizing their finances and making the most of available government schemes. Beyond ensuring financial health, banks also have the capability to help enterprises and individuals better adhere to their own individual core values.
Ultimately, banks are faced with a unique opportunity to respond to the demand from customers. New entrants to the banking industry, such as Robinhood are bringing in new approaches to banking.