Banks are a financial institution that deals with people’s money, banks are in charge of managing people’s money and in some cases managing the finances of the entire country. Banks are tasked with accepting deposits from the public and different companies and creating credit for the end-user. Banks have been playing an instrumental role in the country’s economy and there have been many events in which a single error from the banks costs countries billions of dollars.
Banks are an integral part of the country because they manage the wealth and income for the people and the state as well. Without banks, the interconnected world as we know it would end and the world wouldn’t be the same. Even though banks play such an important role in the development of the country and its people, they are still outdated and most banks still work by the rules written decades ago which do not apply to the modern-day scenarios.
Here are a few things that the banking sector needs to adapt to survive the changes that are coming.
The most important part of a bank is to manage the cash flow of its users, and as of today, many banks take up to 3 business days to make transactions. Due to this constraint, many small business owners don’t prefer banks as a means of transactions. Banks need to implement methods to provide their customers with real-time payments sending and receiving options. Now many banks are creating new ways to make this happen but still, some banks have not implemented such methods and data from studies have shown that banks that do not provide their customers with fast payment methods are losing new customers regularly.
Offer Better Communication
There always has been a significant lack of communication between the bank and their clients, and in this age of Gen Y, Gen Z and millennials, the younger audience cannot stand by the lack of communication there is between a bank and its customers. In the older days, there were not a lot of fast options that banks and their customers had for interactions but in recent years a client is just a call or an email away from establishing communication and banks are still not adopting it. A recent interview between Eyal Nachum of Bruc-Bonds discussed the lack of communication between a bank and its clients and how their company is working on a method to reduce the lack of communication.
Using Tech in Banking
Let’s face it technology has been improving day by day and new methods of interacting with the latest technology are appearing day by day. But if we look at the banking sector, they are still working on technology that was outdated a decade ago. The banking sector needs a complete overhaul to match the current technological era. Again many companies have stayed true with the advancements in the technological realm but still, a few are running command-line software to date and causing a lot of inconvenience to the users.
Give Users More Control
If we ask a random stranger walking down the street you will find that he will only know a little bit about the bank accounts he holds. This goes for the majority of people. The customers don’t know what is happening to their money, most people including me, don’t trust banks for the same reason. Most banks don’t provide enough information to their clients about their money and what it is being used for. Banks need to change this behavior to attract more people and build a stronger relationship with them.