The 411 On The Digital Banking Evolution

As the banking shift brought about by the rise of FinTech startups continues to disrupt the traditional brick-and-mortar banking experience to make it seamless, convenient and richer, we’re seeing all sorts of interesting partnerships and technological adoption. Traditional banks seem to realize that their vibrancy, let alone their survival, hinges on embracing technology, to do what they already do — but better, faster and more securely – while also adding new features and offerings that will allow their customers a next-generation, all-in-one bank experience.

The March edition of the PYMNTS Digital Banking Tracker^TM, powered by Urban FT, features the latest industry news from the FinTech and consumer banking space, along with the profiles of 38 players — including 10 new provider profiles — as well as the latest news and expert commentaries.

News covered in the Tracker includes the rollout of PayPal’s FIS Cardless Cash to 28 banks (reaching more than 35 million customers), which may just be the kind of innovation that has the potential to universally change the banking experience. The innovation enables users to withdraw cash at ATMs using their bank smartphone apps, without a card or a PIN. And like cards, the days of passwords may also be numbered; case in point, HSBC recently announced the U.K. rollout of new voice biometric and Touch ID security. These innovations are about ease and security for customers. After all, nobody wants to have their information hacked and sold on the open market, as was highlighted with one recent notable case with about 1 million stolen debit and credit card numbers sold on the open Internet. 

Does the digital banking evolution require a customer-first approach? 

This month’s Digital Banking Tracker cover story features an interview with Matthew Lehman, KeyBank’s SVP, Head of Online and Mobile, who discusses the evolution of digital banking and how a full-service bank is embracing digital and evolving along with its customers. The biggest challenge for the bank, Lehman said, is knowing where to focus, but starting with the customer seems to be a positive approach.

Here’s a sneak peek: 

When it comes to bill payments, Lehman said, ease is a value he is focused on delivering to his bank’s customers. And they are finding ease in small increments — like removing clicks in individual payment transactions or enabling customers to add, modify and change payees through the bank’s mobile banking app, which are both examples of changes the bank has made and continues to refine.

“If we can make it easy and we remove that friction, it’s logical that a client would want to pay through a single source, rather than have to go to each of the biller sites individually and either set up those payments or make those payments on a one-off basis.”

Recently, Lehman said, KeyBank has been focused on offering a mobile full-service bill payment experience, similar to what’s available on the bank’s full online offering. The response, he said, has been extremely positive. “We’ve seen overall growth in the amount of bill payment activity,” he said. “And it very much fits with the standard use case of how many of our clients’ lives are changing today.” Time, he said, is a valuable commodity. Realizing that clients are on the move and enabling them to add payees quickly and make a payment, he said, “we’re trying to provide them time.”

To download the March edition of the PYMNTS Digital Banking Tracker^TM, powered by Urban FT, click the button below.