Americans, whether crossing oceans to a new world, inventing the lightbulb, demanding their MTV, or creating new digital economies, are pioneers ready to build and embrace a better future. Sure, 2020 was a rollercoaster. But with multiple vaccines on the way, the economy looking up, and the Dow at 30,000, 2021 promises to usher in a fantastic new era.
And consumers are ready. From Teladoc to Zoom to Peloton, tech adoption has time-traveled seven years into the future! Digital interactions with businesses are up 3x since 2019. In real-world terms that mean 80% of customer interactions are now digital (McKinsey, 2020)!
We shouldn’t be surprised. Millennials are nearing middle age and Gen-Z’s entering the workforce. Together they represent nearly half of working-age adults and $350B in spending power (McKinsey, 2020). These digital natives have used Amazon and PayPal for decades, and have had iPhones glued to their palms since President Bush was in office.
To them, easy and secure tech isn’t new. It’s the norm. Even before 2020, one-third of new account opens happened online. More importantly, 75% of consumers will open an account online, but 23% will abandon if the process is difficult or inconvenient (ConsumerAffairs, 2020).
With an infinite number of fintechs at their fingertips, customers select the service that provides the best, fastest experience. New services like preferred GDS Link partner, Vouched, provide rigorous KYC and identity proofing in seconds. That means you can give customers the freedom to open a new account, apply for a loan, or get that new credit card at a time and place that’s convenient for them. Instant gratification is a powerful way to increase revenue and build loyalty.
Using GDS Link’s sophisticated decisioning engine means the cost of new customer onboarding is significantly less than old, traditional methods, while the speed and ease create happier customers. Moreover, GDS Link and Vouched customers experience lower fraud rates compared to human identity verification.
Hundreds of billions of dollars are up for grabs by neo and challenger banks. Even tech behemoths like Facebook and Apple are becoming fintechs. Nearly three-quarters of consumers say managing their money digitally is the new normal (Governing, 2020). The future is here and banks can easily win if they’re willing to give their customers what they want.