3 Banking Technology Trends Every Bank and Credit Union Needs To Know
In a nutshell 🥥 Banks and credit unions are under pressure to do more with less—and the tech that truly moves the needle falls into three buckets: hybrid banking experiences that blend digital convenience with human advice, tools that increase staff efficiency to offset staffing shortages, and data-driven decision-making powered by appointment, queue, and in‑branch traffic analytics. Together, these trends help FIs grow revenue, boost loyalty, and deliver better experiences for both customers and staff. Today’s banks and credit unions are facing immense pressure to do more with less. This is driven by several factors, including an industry-wide talent shortage, budget cuts, and an increasingly competitive industry landscape. As a result, FIs are increasingly relying on technology to help them operate more efficiently than ever. Global banking IT spending will reach $715 billion by 2025, according to Statista, and banking software spending will make up the bulk of this growth—with a 13.5% increase this year. The market for AI in banking alone is expected to reach $64.03 billion by 2030. With so many banking technology options available, how can you determine which trends are worth the hype? In this article, we’ll help you cut through the noise. We’ll highlight three trends that will help your FI drive growth, loyalty, and a better experience for both customers and staff. 1. Hybrid Banking—The Key To Winning The Customer Experience Race The last several years have seen an accelerated focus on digital experiences. More than 65% of FIs have partnered with at least one fintech company over the past three years, and 35% invested in a fintech startup. As of 2021, 30% of banks and 44% of credit unions planned to launch a banking chatbot. And that’s just the beginning. FIs are also revamping their digital banking strategy adding robo-advisors, implementing video banking, and so much more. These digital tools have many advantages, helping to meet customers where they are and delivering more convenience at a lower cost to the FI. But there’s a danger to this digital-only approach: if you’re not careful, it can come at the expense of customer experience. Most fintech partnerships have fallen short of their FI’s goals, with just 28% saying they’ve seen a 5% or better increase in loan volume. Likewise, many banks say chatbots lack a crucial “human element,” and 42% of all businesses say their main priority is to connect on a deeper digital level with consumers. Worst of all, only 21% of customers say their FI has helped them improve their overall financial health. The Benefits of Hybrid Banking Clearly, FIs are struggling to give customers the financial advice they need in a way that’s both efficient and effective. But a hybrid banking strategy can help bridge this concerning gap, giving customers the human support they need when making critical financial decisions. When FIs make it easier to connect with real humans (in additional to digital touchpoints), they’re more likely to attract new customers, sell more products, and improve the overall experience. Today’s consumers live fast-paced, busy lives. They don’t want to spend hours in line and they don’t want to spend hours Googling for answers to their financial questions. Instead, they want quick, simple, and direct solutions. Banks and credit unions can meet this demand by making it easy for customers and members to book with financial advisors in just a few clicks. Self-service appointment scheduling tools are easy to use, so clients are more likely to use them. Advisors can even send personalized links to proactively reach out and offer appointments at scale. When advisors have more face time with their clients, they can offer the type of personalized support that makes clients want to stay loyal to your institution. 2. Increasing Staff Efficiency To Overcome Staffing Shortages  In the past few years, banks and credit unions have faced a drastic increase in staff turnover and employee dissatisfaction. On average, banks had a turnover rate of 25% in 2022, and one credit union study revealed a 131% increase in dissatisfaction rates related to staff training. So it’s no surprise to learn that 80% of banks and credit unions name staffing efficiency as one of their biggest concerns. How Staff Inefficiency Hurts FIs Staffing shortages are a key driver of FI inefficiency and staff burnout, which poses a very real threat to customer service and overall growth. Here are just a few of the scenarios that can play out when FIs aren’t focused on staff efficiency: Long in-branch wait times. When branches are short-staffed, customers and members often face long wait times for even the most basic services, such as withdrawals or deposits. If they have to wait too long, clients leave before getting the help they need. This can lead to frustration, resentment, and decreased loyalty. Long lead times for pre-scheduled appointments. If customers and members have to wait several weeks to see an advisor in person, they may lose patience with the institution and look elsewhere for services. This creates missed opportunities to sell products and bring in revenue. No qualified staff to help with products and services. Nearly 60% of banking customers expect their financial institution to help them improve their financial health. These customers often want to speak with qualified staff for advice about specific products and services. When these staff members aren’t available, they may look to a competitor for faster services. These circumstances all lead to missed revenue opportunities and missed changes to build important relationships with customers and members. Tools to Increase Staff Efficiency To combat this risk, FIs must make sure their staff is equipped with an end-to-end platform that empowers them to do their job well. An appointment scheduling platform can help staff prepare for appointments ahead of time, share documents, collect signatures, and note follow-up tasks from one user-friendly interface. Ultimately, they offer the tools needed to deliver the same quality customer experience, whether in person or online. Video banking solutions also allow advisory or frontline staff to meet with clients from