Consumers are raising the bar on expectations for financial digital experiences. Here’s how companies can keep up.

• • One core aspect of creating best-in-class digital interactions is trust and helpfulness.
  • Financial institutions of all kinds will benefit from meeting their customers on the platforms they already use.
  • One-third of the population are more likely to explore new financial services if promised a better experience than their current provide.

When most people think of disruptive financial technologies, they picture payment apps like Venmo or Apple Pay and other tools that make it easier to bank and transact. But while tech companies sometimes appear to corner the market on delivering convenience, many companies can do the same by building digital experiences that meet consumers’ expectations for speed, ease, and helpfulness.

According to a recent Google study on digital disruption, 75% of household decision-makers are using disruptive payments-related technologies, in large part because of how easy they are to use and understand. While the definition of digital experience will depend on the company, it usually involves a combination of an easy user experience, access to differentiated offerings, and seamless interactions between the platform and its consumers — particularly on mobile devices.

As Google’s study shows, companies that can provide these kinds of experiences are the ones attracting new customers most.

“The trend toward digital first experiences has been driven by the 37% of financial decision-makers who are open to trying new things, proactive in seeking out better financial opportunities, and more likely to be a source of financial recommendations to family and friends,” Mike Henry, managing director of financial services at Google, said.

“This is a group that evangelizes brands they love and challenges traditional notions of consumers’ trust of financial institutions,” he added. “They place their trust in financial companies that deliver really useful experiences. They’re not particularly impressed by a company that boasts tall skyscrapers and stadium sponsorships.”

Creating better experiences

With more disruptive fintechs putting a spotlight on the importance of digital experiences, traditional institutions are now seeing the benefit as well. According to the study, 70% of consumers who use innovative banking technologies say their experiences with disruptors has caused them to expect more from other providers.

Indeed, many traditional institutions are creating new tools, and revamping old ones, with better digital experiences in mind. For instance, robo-advisors, which are automated digital platforms that take in client information and then recommend investment options based on algorithm-driven outcomes, are taking chat-bots to the next level by providing an increasing degree of personalization.

One US-based bank recently announced a new focus on creating better digital experiences. It’s launched a mobile app that combines savings, checking, and retirement accounts into a single user interface. Its chatbot can now offer portfolio and trading insights, while clients can also trade stocks directly from its app.

Other banks are offering video-related education content. What’s more, AI-generated content can be tailored to a customer’s banking habits, going beyond their last transaction to make use of more of their financial data, providing a better banking journey.

Raising the bar

A core aspect to creating better digital experiences is trust and helpfulness. By helpfulness we mean demonstrating that the organization cares about making the individual’s financial life better. The survey showed that 80% of the decision-makers who are open to trying new things, described by Henry above, said that fintechs care about making their financial lives easier, compared to 73% for traditional institutions.

As consumers demand better experiences, it’s important for fintechs and incumbents to deliver value in new ways as consumers’ needs evolve.

“Security and risk management are already baked into products, so expand focus to tech and experiences,” said Jeff Kingsley, president and COO of Known, a marketing and research firm that worked with Google on its digital disruption study. “Lean into integrating these products and experiences into their everyday lives.”

One company that’s always looking to up its experience game is Square. When COVID-19 hit, Lauren Weinberg, Square’s chief marketing officer, said, “we put ourselves in our customers’ shoes and we knew that they needed more. We knew that they needed relief, with so many businesses being forced to close, so we took a portion of our marketing investment and redirected to provide refunds and free software to our customers.”

This kind of compassion, of meeting customers where their most urgent needs are, is a key part of a positive consumer experience in financial services, she said.

Ultimately, financial institutions of all kinds will benefit from creating better experiences for customers on the platforms they use most.

“My recommendation is that every financial marketer take a few minutes to experience your brand as a consumer,” Henry said. “Try opening a checking account, try getting an insurance quote. Think to yourself, ‘how can we make this experience even better?’ These days consumers expect every brand experience to be fast, frictionless, personalized, and helpful. That bar is high and it continues to get higher.”

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This post was created by Insider Studios with Google.