Pub. 11 2020 Issue 1

www.wvbankers.org 14 West Virginia Banker I t’s an exciting and challenging time for financial institu- tions. Banking has officially entered a new decade, spurred by innovative technologies, a digitally-focused consumer and the age-old benchmark of becoming competitive, com- pliant and profitable. But how exactly will banks get there? To understand how bankers will prioritize their digital and in-branch strategies, compliance concerns, cybersecurity defenses and technol- ogies in 2020, CSI, a leading provider of fintech and regtech solutions, polled banking executives from around the country, representing 227 financial institutions from across the as- set-size spectrum. The data from this survey was then collect- ed and used to create an executive report to help bankers get a pulse on the industry’s hot topics and strategies. Bankers’ Self-Assessment Bankers were asked to kick off the survey with a reflective question: how would you rate your bank’s 2019 performance in key areas on a scale from 1 to 5, with 5 being the highest. • Customer Retention and Compliance: Above Average Bankers gave themselves high marks on two of the most im- portant areas for bank profitability and safety and soundness: customer retention (4/5) and compliance readiness (3.9/5). • In-Branch and Digital Experience: Room for Improvement At 3.5/5, bankers think they are providing a good (enough) in-branch experience for their customers. However, fewer (3.3/5) say the same about their digital experience, by which more and more customers prefer to bank. David Albertazzi, research director for Aite Group, says: “It’s good that bankers recognize that the digital experience they are providing their customers is not fully mature or where it needs to be yet. If they want to meet the challenge of attracting a younger de- mographic, they must be able to deliver an exceptional and personalized customer experience on a digital platform.” • Customer Data Management: Less than Stellar Collecting and utilizing customer data is by far the greatest challenge for bankers in 2020 (2.5/5). Recognizing this defi- ciency should drive institutions to more effectively leverage customer data — whether held by themselves or their ven- dors — to create new revenue streams. Attracting Customers Through Technology More and more retail and commercial customers are de- manding a seamless banking experience. And it’s not just the centennials and millennials; Gen Xers and baby boomers also want immediate access to bank products and services. Fi- nancial institutions will need to leverage technology to meet these expectations if they want to retain existing customers and attract new ones. The CSI survey asked bankers to rank the technologies their institutions will use to attract new customers. The results? Bankers are digitally focused: 1. Mobile Banking Apps: Bankers know their mobile app is the best way to attract new customers. Given that A Banker’s Guide Through the Top Strategies of 2020 By Steve DuPerrieu, CSI