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Banking Customers Expect Technology Innovation

We have to acknowledge that 2013 was the year of innovation in retail banking. We witnessed huge growth that exceeded industry expectations from the online-only banks. In a recent study, “online-only” stood out as the only category of banks to gain share in the past decade among customers establishing (or moving) their primary banking relationship. While new relationships captured by big banks remained flat, online-only banks increased share from 3.5 percent to 8 percent. Deposits at Ally Bank increased 23 percent to $43.2 billion last year, while Discover reached $27.9B (up 5 percent).

The continued customer adoption of new technology has, without question, increased the demand for mobile and online banking services – leading to the emergence of a new segment of virtual customers. However, the value of human interaction still exists, especially when resolving service issues. The personal attention that consumers value when they walk into a branch is continuing to drive the debate around how much to invest in virtual banking services versus traditional brick-and-mortar locations.

Read more on this topic in a recent Bank Systems & Technology article, where I explore the rapidly evolving online customer, and the importance of integrating innovation into the customer experience.

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