New ABA, Accenture Report on State of Digital Lending Provides Roadmap for Digital Transformation at Banks.
ENPNewswire-October 15, 2021--New ABA, Accenture Report on State of Digital Lending Provides Roadmap for Digital Transformation at Banks
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Release date- 14102021 - A new report released today by the American Bankers Association and Accenture provides a roadmap to help bankers speed up their ongoing digital transformations to meet rising customer expectations for hybrid experiences, bridging online and person-to-person options.
The report, titled 'The State of Digital Lending,' includes key considerations for banks, including how to identify pain points, select partners and develop a transformation framework.
'Digital transformation is not as simple as flipping a switch - it's a continuous process and this report will help banks define their goals and develop customer-centric solutions,' said Rob Morgan, senior vice president of ABA's Office of Innovation. 'Consumers expect to be able to get a loan online, move money instantly and even obtain financial advice any time on their mobile device or computer, and the pandemic has only heightened those expectations.'
The COVID-19 pandemic drove more consumers-even those who until 2020 lagged in digital adoption-to online and mobile banking. According to the report, baby boomers increased online usage with 68% skipping human interaction to make a decision about banking products compared to 55% before the pandemic. These changes in digital habits are expected to be permanent. The report cites a KeyBank 2020 Financial Resilience Survey, which showed 85% of respondents were likely to continue conducting some or all of their financial transactions digitally.
According to the report, the banking industry receives high marks for customer satisfaction in part due to its successful in-person relationship model. In a recent small business credit survey, large banks achieved a customer satisfaction rating that was 35 percentage points higher than online lenders, while small banks outscored them by 49 points. To satisfy consumer desire and compete effectively, the report suggests implementing a hybrid model-meaning banks offer both digital efficiency and a human touch when needed.
To achieve this hybrid model and drive the shift to digital, the report describes several actions bankers can take:
Get to know the landscape and adopt a mindset of continuous learning;
Get leadership buy-in;
Look at the ecosystem and understand how any changes will course through...
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