Banks urged to facilitate ‘digital financial lifestyle’ of consumers

More financial institutions and consumers alike are choosing to ‘go paperless’ and focus on digital platforms to send correspondence, manage financial accounts and engage in financial transactions. The benefit for banks is lower costs for drafting and mailing bank statements and notifications. Many consumers are going paperless as a way to reduce their carbon footprint and avoid the clutter of several statements and bills that they can view online.

A new survey released by Javelin Strategy and Research shows that the banks that continue to facilitate consumers’ “digital financial lifestyle” are more likely to boost customer loyalty and achieve their paperless initiatives. However, in order to accomplish these goals, banks cannot simply displace paper, but must create something better than paper, Bank Systems and Technology reports.

The Javelin study highlighted seven core areas that banks will need to improve on in order to fully realize their paperless initiatives. According to the study, banks must recognize that 1) customers are always “on,” or have full access to their accounts, 2) interactions will be in real time, 3) there will be transparency, 4) the customer decides how they want to receive information, 5) information will be integrated, 6) interaction will be secure and 7) the relationship with the bank will help fulfill the customer’s goals, BankTech reports.

Javelin senior analyst Mark Schwanhausser says that while banks have made significant strides in achieving some of these factors, they have yet to fully realize each aspect of this plan, BankTech reports. However, once banks are able to hit these seven points, they may be in a position to build a stronger relationship with consumers as not only a service provider, but as an advisor.

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