Table of Contents
5 Most Common Banking Problems and Their Solutions
Without any further ado, let’s look at the most common banking problems and the technological solutions to them.
Understanding Customer Expectations
Problem:
Customer expectations are always shifting, but never before have they been so diverse as they are now. Modern banks need to be attractive to both, the clients who grew up in the pre-internet era and might still struggle with digital banking and those who prefer to manage their finances only with their mobile devices.
Solution:
The best way to understand customer expectations is to research your data. With new technological solutions, such as our platform for personal banking, you can easily collect data about your customers and analyze it using AI to extract the most accurate insights about your clients’ problems, needs, and preferences.
Cybersecurity
Problem:
Cybersecurity in banking is paramount, especially with the industry switching towards the digital. New technologies open new opportunities, but also new attack surfaces, and with data being stored mainly digitally, it becomes crucial to outdo cybercriminals if you want to maintain your clients’ trust.
Solution:
You need to constantly upgrade your systems. Collect threat intelligence, conduct regular penetration testing, and use robust authentication methods and reliable databases. Cybersecurity isn’t a one-off; it’s not even a process—it is a race in which you need to overtake the criminals.
Competition
Problem:
With digital technologies and FinTechs, the world of finance is getting much more crowded. You need to be exceptional to stand out and attract customers; otherwise, they will move to your competitors.
Solution:
The key here is customer experience. You need to ensure that it is as personalized as possible and that your clients’ interactions with your bank are positive. Your organization needs to become proactive, offer optichannel services, and improve its customer service to a level that is simply better than that of other banks and FinTechs.
Rising Customer Acquisition Costs
Problem:
Customer acquisition costs reached abnormally high levels, making getting new consumers to banks extremely costly.
Solution:
You need to invest in systems that make your customer acquisition more effective and can increase your lead closure rate. For instance, you should improve your customer onboarding (since this is the most abandoned stage) by making it fast, easy, and digital—our LiveBank platform’s eKYC module can help you with that. You should also go the extra mile to ensure high customer loyalty—it’s still less expensive than acquiring new clients.
Legacy Systems
Problem:
Many banks operate on legacy IT solutions that not only hinder their operations but also make them prone to cyber-attacks.
Solution:
You need to invest in the latest technologies. Sometimes, it is good to develop a new mobile banking app or website from scratch rather than stick to an outdated technology trying to fix it. Moreover, you should invest in additional platforms, for instance, for customer engagement, document processing, or quick searches in the internal documentation.
LiveBank—Your Solution to the Most Common Banking Problems
Our LiveBank platform was designed to be the ultimate solution to the most common banking problems. It is a highly secure software that will protect your clients’ data, while providing you with multiple features that will help you take on the other challenges, namely:
- An AI prompter for easy internal information searches.
- An AI-powered document processing system that will enable you to extract data even from unstructured documents easily.
- Robust data integration and processing capabilities to let you connect all your channels, understand your clients, and predict their behaviors.
- Cutting-edge features like fully automated (or partially autonomous, depending on your choice) customer onboarding, sophisticated customer service chatbots, intelligent product recommendations, and many more.
Contact us today, and let us take your bank to the next level.
The Takeaway
Modern banking problems require modern banking solutions, such as LiveBank. With the right technology, you will overcome all the challenges and emerge as an industry leader. What are you waiting for? Test our solution and discover how it can help you become a true bank of the 21st century!
You might also read: Future Trends in Digital Banking: What to Expect
