Key Takeaways About Insider Intelligence’s Panel Channel Strategy

Insider Intelligence launched its second Bank Insider Panel on October 15, one of a two-part series (see part one here) that explores how banks are adjusting channel and marketing strategies in light of the pandemic.

adoption of digital and smartphone banking services is on the rise

Trading Insider Information

These brief data-driven presentations, followed by panel discussions, coincide with the upcoming launch of Insider Intelligence’s new market intelligence platform for financial services. In “Adjusting to a New Reality,” Research Director Dan Van Dyke discussed channel adoption and customer engagement and moderated a conversation with

digital bank

and strategic executives from BMO Financial Group, M&T Bank and First Horizon Bank.

Here are four key takeaways from the panel:

  1. The pandemic quickly accelerated banks’ digital transformation plans, but many short-term digital plans were shelved. Adoption of digital and mobile banking in the United States, defined over the past month, will increase by 6 percentage points year-over-year in 2020 to reach 73% and 55% of American adults, respectively, according to our forecast. As transactions, customer support, marketing and account opening go digital, banks are making tough choices to keep services running. For example, Brianna Elsass, who leads U.S. digital at BMO Financial Group, noted that an internal focus on reducing outages – a “Zero Outages” policy – ​​resulted in the postponement of two long-term improvements to the bank.
  2. Vendors are focused on equipping front-line bank employees with new tools to help and interact with customers. For example, Ben Hopper, who leads regional banking strategy at First Horizon Bank, said that in a pre-pandemic departure, “instead of the contact center, we’re saying ‘here’s your banker and your local branch, with an open drive-thru. ‘But call if you have a question.'” Elsass noted that “with the onslaught of customers requiring assistance, it’s driven call volumes up, and we’ve taken advantage of that to design a temporary solution to allow associates in the branch to respond to secure messages… Associates in corporate jobs have even been put to work. »
  3. The PPP has shown that partnerships are a key approach to moving with agility. “When the Paycheck Protection Program (PPP) launched, we had fintech partnerships for platforms and scale,” said Mary Kate Loftus, who heads digital at M&T Bank. “In the weeks leading up to PPP, we already had a Blend and Salesforce partnership. We were able to set up the platform in 72 hours, bringing together bankers, account managers and technologists. forgiveness phase.
  4. Consumer priorities amid the pandemic have shifted from bricks to clicks, as physical channels have taken over digital. “Nearby branches” was the second priority considered by mobile banking users when choosing a bank in 2019, with 39% of US mobile banking users indicating this was a major factor in choosing a bank, according to data from Insider Intelligence. This figure dropped to 33% in 2020, making it the fifth highest priority for respondents in 2020. Instead of traditional channels, consumers showed an increasing preference for monetary factors such as tariffs and fees, and channels digital, including online and mobile banking.

Click here to see the full presentation and panel discussion.

Tanya J. Hill