Several digital banking vendors have emerged to meet the need for dynamic customer experiences. These new wave vendors are fast and innovative, using rapid iterations and customized integration. However, not all vendors are suited for complex banking solutions.
The digital banking ecosystem is undergoing a rapid transformation, and vendors must make continuous improvements to software value propositions. These updates should support emerging technology trends, such as artificial intelligence and machine learning. These capabilities enable personalized customer experiences, behavioral analysis, and contextual sensitivity. These capabilities also support the needs of banks for a 360-degree unified customer visibility.
Banks should consider investing in a scalable, omni-channel digital banking platform that provides the flexibility and scalability to support their needs for years to come. By using one system to manage multiple channels, banks can reduce unnecessary costs and offer a frictionless digital banking experience. The platform should also provide advanced analytics and unified customer visibility.
A digital banking platform should also offer a robust technology strategy that addresses emerging technology trends, such as machine learning and artificial intelligence. Banks should also evaluate the level of vendor integration and monitoring. Banks can also choose to license multiple products from an assortment of vendors, but this practice can limit their cost savings.
While there are several core vendors that offer digital banking solutions, many of them have long-term contracts that limit their ability to respond to emerging products and technologies. Additionally, separate vendors for various solutions create silos of data, which can hinder the comparison of data from different channels. This results in a limited ability to identify revenue growth and fine-tune marketing strategies.
Banks should consider partnering with several vendors to provide a holistic digital banking solution that addresses their customer’s needs. This can also enable banks to better adapt to changing customer needs. Moreover, the combination of a variety of vendors can improve the user experience and allow the bank to monitor performance. This strategy can also reduce operational inefficiencies.
Digital banking vendors should pay attention to user feedback and use it as a source of product improvement. For example, if a user experiences a problem with a specific functionality, the vendor should stop delivering that function. This can be done by creating a user failure map.
A digital banking solution should also offer an open platform, which allows banks to easily integrate with their legacy core banking systems. Banks should also consider whether they want to invest in a scalable, cloud-based digital banking platform that can scale to meet their evolving needs.
When selecting digital banking vendors, banks should evaluate a variety of criteria, including functionality, cost, and simplicity. While these factors are important, banks should also evaluate the level of vendor integration, monitoring, and contract term dates. These factors can determine the performance of the digital banking platform and the level of customer satisfaction.
Another key metric to consider when selecting a digital banking vendor is experience and engagement. This metric measures the vendor’s ability to deliver personalized digital experiences, including digital discovery, personalization, and sentiment applications.