7 Community Banking Trends in 2023

Achieving Financial Wellness in the New Year

As we head into 2023, several trends focused on technology and improved customer experience are emerging. Banks are keeping a close eye on the economy after record-breaking inflation, rising interest rates, and the cryptocurrency cooldown. But they are laser-focused on the fast-developing technologies that are fundamentally changing the banking experience.  Digital innovation is making financial products and services more accessible and convenient for a broad range of customers.

All great relationships are built on trust. Creating trust is critical for community banks and that trust begins with the customer experience. Customer experience refers to the collective experience of a customer interacting with various touchpoints, such as online and mobile banking, as well as face-to-face interactions. Customers need seamless experiences that are easy, convenient, and consistent.

 

Organizations are moving from financial prosperity to financial wellness as a priority. They are driven to deliver growth and efficiency while tightening up cybersecurity and customer privacy. This article will take a close look at the trends that are shaping the modern banking experience.

 

Top 7 Trends in Community Banks in 2023:

1. Customer self-service – Thanks to mobility, customers are able to fully access a bank’s resources from their mobile app. As more customers are becoming comfortable with digital wallets and payment apps for day-to-day transactions, the use of paper currency and plastic cards are gradually phasing out. Banking apps will utilize smart data to understand a customer’s needs and preferences based on financial behavior over time.
2. Paper Checks – Checks have maintained their status in the payments industry.  Banks will continue to use innovative technologies to automate check payments. Checks have staying power because many industries continue to see checks as a preferred payment. PYMNTS.com reports that 81% of businesses still pay other firms with paper checks.
3. Digital transformation – Digital transformation is prioritizing the focus on customer experience, ensuring the solutions meet all customer needs in terms of ease of use, security, convenience, and engagement, setting banks apart from their competitors. The more comfortable and confident a customer feels interacting with digital channels, the better their overall customer experience will be. Internet banking, mobile banking, and remote deposit capture services play an important role in enabling community banks to better serve their customers. While big banks are driving technology for scale, efficiency and cost improvement, community banks are leveraging technology to improve customer intimacy.
4. Human Interaction – Although artificial intelligence and digital transformation are key to the customer experience, so is human interaction. Successful community banks offer a mix of AI and live support for customer service. This allows for efficiency while providing customers with the kind of personal touch that they crave. With the rise of digital banking, customers are coming into the bank because they want to, not necessarily because they have to. Most transactions can be completed through other channels, so consumers walk into the branch for connection and engagement.
5. Automation – Customer experiences are being enhanced with the use of automated processes. This enables banks to find new ways of interacting with customers. The automation of the customer interface and the application of artificial intelligence have greatly improved the efficiency of banking. This has led to faster transaction processing times, lower operating costs, and improved customer satisfaction. Digital technologies have enhanced the development of mobile payments and digital lending. The use of mobile phones to make financial transactions, such as payments or transfers, is expected to continue to grow in popularity.
6. Cybersecurity – Banks are investing in advanced cybersecurity measures with the increasing prevalence of cyber threats. These measures protect against attacks and data breaches. Biometric authentication, such as fingerprints or facial recognition, is used to prevent fraud and protect customer data. This has significantly reduced the risks associated with online banking services. Banks will continue to fortify themselves from both cyber threats and fraud to provide a secure banking experience.
7. Omnichannel banking experience – Customers can move seamlessly between their actions (mobile, online or face-to-face) without needing to initialize the action each time. Personalization of the user’s experience allows for a deeper relationship with the bank and provides insights that help the bank understand the customers needs better.

Active customer engagement is foundational for the trust that community banks need to build with customers. That’s because trust and quality relationships lead to more profitable business and customer retention. Without good customer engagement, levels of trust are lower, relationships are weaker and customer loyalty is at risk.

In order to focus on the customer experience at the same time as this digital transformation, banks will need to provide solutions that provide convenience, comfort, ease of use, and engagement. Customers want more from their financial institutions than ever before. So, banks must work to both attract and retain customers. First-class customer service is essential in 2023.

Community banks can provide a differentiated, intimate customer experience on top of a good digital offering, which, for many, make them the better choice for a financial institution.

Jarrettsville Federal Savings and Loan put down roots in the community in 1869 as a strong, stable financial institution. Over the years, we have developed relationships that span generations. Our 154-year tradition of community banking helped us to grow. Today, we continue to thrive, with checking, savings and loan products that meet our customer’s needs, technology that brings us into the future, and community service that gives back to our customers.

At Jarrettsville Federal, doing your banking electronically is fast, easy, secure, and convenient.

• It’s available 24 hours a day, 365 days a year.
• Internet banking gives you more control of your finances. You can:
  • Monitor your account activity;
  • Transfer funds;
  • Stop payments;
  • Feel confident it’s secure.

Jarrettsville Federal knows security and privacy are especially important to our customers. Our online banking allows you to select a unique password of your choice.  All messages are encrypted, and “firewall” technology prevents others from gaining unauthorized access to our computer system. For additional information on Internet safety please see our Consumer Awareness Guide.

Start online, contact us by email, or walk into our branch any time to learn more about checking, savings, home loans, and commercial loans.