The American Banker Annual Digital Banking Conference in Austin, Texas, June 13-15 brings together industry-leading banks, credit unions, fin tech companies, payment service providers, merchants and regulators on this day. from.
From the tech talent competition to the rise of mobile banking scams, here are 10 topics banking industry leaders are focusing on at this year’s event.
The current state of digital transformation
Digital transformation remains a top priority in the world of finance and professionals, but organizations are constantly trying to keep up as each new development is quickly followed by the next.
However, while technology is seen as the key to competitive success, less than a third of financial institutions and professional organizations consider themselves leaders in this field.
However, organizations are keen to take advantage of new technologies and recognize that if they do not want to be left behind, the most important step towards the future is to develop a clear technology strategy.
Take advantage of income diversification
Oregon Bancorp continues to be the top US community bank in the American Banker’s Top 200 Annually Listed Banks with less than $2 billion in assets.
Oregon’s position at the top of the rankings for the fourth consecutive year is based on key average capital gains. Banks recorded an ROAE of 32.84% in 2021, well above the median of 13.40% among the top 200 companies.
According to President and CEO Ryan Dumpster, it is important to combine a local commercial bank with a local mortgage business that generates significant fee and commission income. “This diversification has really helped us over the last couple of years,” Dumpster said.
Prospects for a commercial bank
Strong demand for commercial and industrial loans led to annual growth of about 3% in the first quarter for local banks with total assets of less than $10 billion, according to S&P Global.
While some banks, such as Third Coast Bancshares in Hamburg, Texas, are enjoying positive economic growth and strong demand in regional markets, rising inflation is a major concern.
The Fed responded by raising benchmark rates and borrowing costs in March and May. However, demand for C&I loans remains strong, with inflation above 6% for the seventh consecutive month, and cautious optimism is the watchword on both sides.
Take advantage of the latest technology
“We need a bank, but we don’t need one,” Bill Gates said in 1994. The emotions expressed may still have some truth to them, but both the banking industry and the banks themselves continue to evolve to meet the needs of today’s customers.
At present, senior community leaders face many challenges. Most important is finding answers to some of the industry’s biggest digital transformation questions, such as the role of integrated finance, how to enable more personalization, and how to take advantage of the latest technologies.
Improving the quality of customer service
According to the EY Future Consumer Index, 40% of respondents plan to switch to online banking within the next 24 months.
This shift in customer behavior means banks must quickly move from a traditional product-centric approach to a customer-centric approach that delivers intelligent, personalized experiences to meet new customer expectations.
To succeed, banks must focus their digital transformation initiatives on delivering a full, real-time digital experience with their customers.
Intensifying battle for talent
The quest for talented developers, programmers and data scientists is intensifying as financial institutions compete for the best new hires, as well as regular fintech and non-bank tech companies.
Birdy Fanning, Head of Banking and Organization at Accenture, said:
Traditional banks may not be able to provide technicians with a culture of innovation and more flexible compensation options, training existing employees in new roles, hiring from a wider variety of sources, and becoming a trusted brand. Take advantage of your reputation and status.
Digital banking with an emphasis on user experience
For regional banks and regional banks, customer-member relationships are a major difference from major banks and Fin Tech competitors.
Recognizing the need to provide world-class online banking experiences to digitally savvy customers, 73% of banking and credit union executives ranked user experience at the top of the digital banking platform requirements list in a recent survey. Did.
Based on responses from 795 US digital banking customers and participants, as well as 150 regional and regional banks, this survey shows that the user experience is becoming more important in digital banking.
Introduced on Defy
Non-fungible tokens (NFTs) are part of the revolution that is taking place in the crypto world. Still, 70% of Americans don’t know what they are, and only 2.8% have them.
NFT is an alternative currency system that uses the same block chain technology as crypto currencies to store value and exchange goods and services based on mutual agreements of counter parties, not governments or banks, decentralized finance or Defy. Is the driving force behind.
As an existential threat to existing financial systems, Defy is becoming more popular in parts of the world where existing financial systems are less profitable. Very few Americans own NFTs, but 32% of Filipinos own them, followed by Thailand, Malaysia, United Arab Emirates, Vietnam, Nigeria, Brazil, Hong Kong, Venezuela and Peru. is.
How to Achieve Customer Satisfaction
According to a US Direct Banking Satisfaction Survey conducted by J.D., electricity, consumers rank fast customer service and easy-to-use interfaces as the highest quality they expect from their providers.
In particular, “fundamentals are still important,” said Paul Macadam, senior director of banking and payments research at the company. “The efficiency of money transfer, money transfer, and availability of funds is very important to consumers. How banks handle this type of customer interaction is how these brands operate. I’m talking a lot about. “
In this year’s survey, the best checking accounts are Charles Schwab and Discover, with 715 out of 1,000 and American Express at the top of the list of savings accounts.
Evolution of mobile banking
Consumers have recently found that 86% of millennial, 83% of millennial, 72% of generation X, 38% of baby boomers, and up to 17% of older people use mobile phones. After finding out, I agreed that mobile banking was well established. .. For private banks.
However, the growth of mobile banking has been accompanied by a corresponding increase in the amount and complexity of mobile banking scams. According to reports, the most common types of cyber-attacks include malware, account hijacking, and personal information theft.
In response to higher levels of threats, financial institutions are focused on ensuring that mobile apps can operate safely in the face of higher risks and more complex banking transactions.