Balancing tradition and transformation – the financial industry reinvents itself

The everyday life of our society is increasingly influenced by digitalization. While the baby boomer generation is becoming increasingly fond of digitization, digital natives are already used to being able to control all communication and business on the move from their smartphones.

Driven by the digital customer experience in other industries, customers’ expectations are rising in banking as well. They have long since become accustomed to the benefits of digitization. For example, 69% of German customers already used online banking in 2019. Due to the lockdown in the wake of the Corona pandemic, digitization recently received an enormous boost. As the spread of the disease was exponential, so too was the use of digital technologies to conduct banking transactions.

However, digital channels will not completely replace interpersonal interaction with an advisor. Especially for larger and more emotional decisions, personal interaction with an advisor is still valued. Although more than 90% of bank customers research a product online before buying it, only 25% of all purchases are made via digital channels.

To accommodate these changes, both branch banks and direct banks must transform themselves into hybrid banks. There is enormous growth potential in this – while at the same time increasing efficiency and saving costs. The prerequisite for this is a realignment of the business model in retail banking. Consileon is happy to support you in this digital transformation.