Our CEO Brian D’Arcy talks with Todays Bankers Digest about Digital Transformation

Luna Connect’s CEO and Founder talked with Larry Grant from Today’s Banker Digest about digital transformation and financial institutions, discussing,

  • Key parts of digital transformation for financial institutions
  • Luna Connect’s approach and methodology for digital transformation
  • Benefits of adopting a digital transformation strategy

Use the link below to access the full interview recording to learn more, Today’s Banker Digest.

See Where You Stand With Luna Connect’s Exclusive Lending Automation Assessment

Automation and other forms of digital transformation may seem overwhelming at first glance for Community Financial Institutions like Credit Unions, Community Banks, and Non-bank Lenders.

The term ‘Digital Transformation’ has become a cliché, with software vendors and consultants beating the DT drum without defining exactly what it means or acknowledging that digital transformation comes in stages, rather than being a single event. It seems as though either you have digital transformation or you don’t.

See where you stand with Luna Connect’s exclusive lending automation assessment

From our experience working with local financial institutions, we have observed that lending automation comes in sequential stages, starting with totally manual processes and advancing through total automation without any human involvement.

To that end, Luna Connect is pleased to launch our innovative Lending Automation Assessment. This free tool enables lenders to complete an online set of questions from which we’ll determine the level of automation you are at today. We then will provide recommendations to get you to the next level of automation. If you are Level 2, for instance, we will explain what you need to do to get to Level 3. We can even provide you with a roadmap to get you to the highest level of automation that is reasonable for your organisation.

In our recent industry article titled, Benchmark Your Lending Operation Using the 6 Levels of Lending Automation, we define the Levels as follows:

  • LEVEL 0: No digital lending or automation capabilities
  • LEVEL 1: Digital loan application capabilities for borrowers, no automation for lender
  • LEVEL 2: End-to-end digital capabilities for borrowers, process automation for lender
  • LEVEL 3: End-to-end digital capabilities for borrowers, process automation and decision support for lender
  • LEVEL 4: End-to-end digital capabilities for borrowers, process automation and automated assessment and decisions, with human intervention
  • LEVEL 5: End-to-end digital capabilities for borrowers, process automation and automated assessment and decisions, with no human intervention

The end objective is not to have the highest level of automation possible, but rather to grow your loan book as cost effectively as possible while complying with banking regulations. Luna Connect can provide you with expert advice on how to navigate the automation process.

About Luna Connect

Often local lending institutions want to be online but don’t know how to go about it. Luna Connect has taken conscious steps to empower lending institutions by assisting them in their digital transformation journey from start to finish. Through Luna Connect, local lending institutions such as credit unions, banks and asset finance firms can leverage AI-driven insights, automate repetitive tasks, and provide a personalised customer experience in just a few weeks. They automate key aspects of the lending journey using our digital platform and provide AI-driven analytics for better-informed decisions and dashboards for performance. In addition, with Luna’s professional services division, clients can get started with customer journey mapping and ensure success with project implementation advisory services. 

See more at www.lunaconnect.io

Contact us at hello@lunaconnect.io or +353 91 398117

Luna Connect Is Now SOC 2 Type II Certified And More Secure Than Ever

At Luna Connect, data privacy and security are vital. Each individual and the team as a whole work continuously to make sure the platform is safe and secure for our customers. Our commitment to providing a secure, safe experience is one of the reasons why Luna Connect has attained SOC 2 Type II Compliance. With our SOC 2 certification, we have proven to our customers their data is safe with us.

What Is SOC 2?

SOC 2 audits are used to ensure that the data managed by service providers is managed securely to protect the interests of organisations and the privacy of their customers. When evaluating SaaS (Software as a Service) providers, security-conscious businesses will always value SOC 2 compliance. The American Institute of CPAs (AICPA) developed SOC 2 and defined standards for managing customer data based on five fundamental trust service principles, namely privacy, security, processing integrity, availability and confidentiality.

According to specified business practices, each organisation designs its controls for complying with one or more of the trust principles. This report provides you (as well as regulators, business partners, suppliers and such) with important insights into your service provider’s data management processes. 

There are two types of SOC reports:

  • Type I refers to the vendor’s systems and whether or not their design complies with relevant trust principles.
  • Type II describes the systems’ operational effectiveness.

How Is SOC 2 Certification Issued?

Outside auditors issue SOC 2 certifications by assessing whether a vendor adheres to one or more of the five trust principles based on the systems and processes in place.

Organisations that are SOC 2 compliant maintain a high level of security. Strict compliance requirements (conducted through on-site audits) ensure that sensitive data is handled responsibly. Keeping up with SOC 2 guidelines can help organisations protect themselves from cyber-attacks. SOC 2 compliance also provides a competitive advantage because customers tend to favour service providers with strong security practices, especially in IT and cloud services.

Assisted By Vanta 

To ensure a smooth audit process and continuous compliance monitoring, Luna Connect recognised that there could be no better partner than Vanta. As a leader in compliance automation, Vanta was our top choice in assisting us with the collection of our audit evidence.

Luna Connect: A Company Committed To Security

As a team, we at Luna Connect could not be more pleased for our customers to have yet more evidence of our commitment to safety and security. We are proud of our SOC 2 certification and will continue to do great work while safeguarding our customers as much as we possibly can in the future. Luna Connect will continue to set a high bar for excellence when it comes to industry technology, innovation and security.

Contact us today to find out how our secure platform can help you https://lunaconnect.io/contact/

Using Luna Connect’s Technology Tools To Benefit Your Financial Institution

Digitise or fail. It’s that simple. Traditional banking methods are just not powerful enough to keep up with the demands of today’s digitally shrewd customers. 

Keeping digitally current can be difficult, and expensive. It is easy to be intimidated by the sheer volume of options available, and it’s difficult to know which one is right for you and your business. Luckily, the experts at Luna Connect have compiled five innovative digital tools for your financial institution to use to ensure that you reach your potential, and skyrocket your growth, and unlike other digitisation plans, these tools are designed to make your life easier, and running your business much simpler.  

Luna Connect Technology

Digital Tools

Luna Connect’s GDPR compliant Digital Tools are the perfect platform for online lending, onboarding and new account registration. In other words, Luna’s Digital Tools fully modernise your clients’ application process, by making it completely digital. It all happens online.

This gives your business access to many benefits, including rapid online access, a fully online digital experience that can be used from any device all over the world and the added benefit of an increased online presence without any capital investment. See short video on Digital Tools here. 

Luna Connect Digital Tools

Marketing & Management Tools

Luna Connect’s Marketing And Management Tools integrate your marketing and lending data giving end to end visibility of campaign efficacy. Never miss an opportunity with better pipeline management from enquiry to decision. Keeping in contact with your clients has never been easier with automated communication and followup technology. 

The Marketing & Management Tools provide you with more resources to find more customers in previously untapped markets, while a real-time AI lending platform helps your teams make better decisions, increasing workplace efficiency and productivity. See short video on Marketing & Management Tools here. 

Luna Connect Marketing and Management Tools

Integration Tools

Knowledge is power. The more you know, the better off you and your financial institution will be. Luna’s Integration Tools allow you to quickly and seamlessly obtain the necessary banking data, credit checks, address verifications, and KYC to properly conduct business and reduce risk while providing your customers with an unparalleled customer experience. See short video on Integration Tools here. 

Luna Connect Integration Tools

Cloud Tools

Luna Connect’s Cloud Tools are perfectly suited to managing the security, availability, and scalability of your financial institution. Our Cloud Tools enable secure remote access to data and processes, no matter where you are, and gives you a platform that encourages innovation and successful product launches. 

Cloud Tools scalable architecture supports businesses of any size, and grows with your business, enabling you to expand freely. It’s also compliant with data protection legislation like GDPR by hosting data in your own region.

It also allows your employees to be more flexible about the way they work, onsite, remotely or in a hybrid model. See short video on Cloud Tools here. 

Luna Connect Cloud Tools

Compliance Tools

Financial institutions are responsible for the security and safekeeping of the client and member funds.. This responsibility requires you and your financial institution to seek the best data compliance tools possible. Luna Connect’s compliance tools are state of the art, providing your company with powerful, certified end-to-end financial and data compliance processes that provide peace of mind with regards to security and data protection. 

Trust is a commodity your financial institution cannot afford to lose, and thanks to Luna Connect’s Compliance Tools, you never will. Your clients will rest peacefully, secure in the knowledge that their financial data is in safe hands. See short video on Compliance Tools here. 

Luna Connect Compliance Tools

Conclusion

In the 20th century, core banking software became a standard piece of infrastructure for all lenders. As the 21st century has brought us into a world of online banking, a digital lending platform has become just as important, if not more important, component to grow your client and member base as well as your loan book as a whole.

Announcing: Luna Connect’s Partner Program

Here at Luna Connect, we pride ourselves on our passion and affinity for creating mutually-beneficial relationships with all of our partners. In these partnerships, we help our partners build great relationships with their clients. To achieve this goal, we are thrilled to introduce Luna Connect’s partner program. The aim of our partner program is to help us expand into new markets globally and introduce the world to our innovative offerings.

At Luna Connect, both partnership and collaboration are top priorities. We partner with third-party technology providers, core banking, consultants and other experts to provide local and regional financial institutions and alternative lenders with best-in-class solutions and services. For example, Luna is partnered with consulting and implementation firm Next Wave Africa as its go-to-market partner for the African continent. Next Wave provides Fintech firms with instant access to the African market as well as consulting services such as customer journey mapping and project implementation and training. Luna is also partnered with tech firm Folio, who helps Luna Connect process Know Your Customer (KYC) with their sophisticated facial recognition biometrics software.

Why Partner With Us?

Partnering with Luna Connect means developing a mutually beneficial relationship with a company you can trust. You can expect to benefit in many different ways, including:

  • Your solution stack is improved by our technology

The Luna Connect Digital Lending Platform offers the most advanced digital lending solution for local and regional financial institutions. 

  • New revenue, more stickiness

By implementing complementary technologies, you can create new revenue streams and improve relationships with your customers by growing even closer to them.

  • We understand your process and interests

Our significant experience in banking technology enables us to provide dependability, integration and speed.

  • Security

By using the latest platforms and frameworks, Luna Connect ensures that its systems are secure and not susceptible to cyber-attacks.

  • Financial institutions expect the right tools and a seamless user experience

Our compatibility with core banking and other technologies ensures seamless integration and personalised digital customer experiences.

How We Engage With Partners

At Luna Connect, we see a future in which our partner network thrives and provinces business development as well as professional services to each of our clients. Because Luna’s technology is so advanced, it has the advantage of being quickly and easily integrated with any of the services offered by our esteemed partners. Luna intends to provide product training and work closely with each of our partners to develop any required demos, proposals and scopes of work documents when needed. The professional services typically provided to our customers include digital assessments, online customer journey mapping, and project implementation plans.

Pricing Structure To Benefit Partners And Customers

Luna Connect’s pricing model is based on alignment with the digital transformation journey of a financial institution from a commercial and strategic perspective. With the design of our SaaS-based (Software as a Service) subscription model, our customers will see significant growth in their online businesses. Using Luna’s cloud-based infrastructure and SaaS, our clients have the benefit of not having to incur any costly capital investments. Digitally transforming operating models along the lines of Luna’s Digital Lending Platform exponentially reduces the cost and risk for our partners. As a result, a symbiotic model is created that keeps the right incentives in place, ensuring that the best commercial outcomes are achieved while improving your digital customer experience.

Why Luna?

It’s often the case that lending institutions have a desire to be online, yet they just don’t know how to get started. Throughout your digital transformation journey, Luna Connect can assist you. In addition to automating essential facets of the lending process, our digital platform uses AI to enable knowledgeable decisions and performance dashboards. Using our professional services division, you can commence with customer journey mapping and secure success with various project implementation advisory services.

Luna Connect makes your digital transformation journey simple with our innovative platform. You can expect advantages such as:

  • Identify pain points, create solutions and develop an implementation strategy by mapping customer interactions and internal processes.
  • Optimise your marketing budget by integrating marketing analytics with the loan application process.
  • Automating internal processes will reduce costs and speed up application processing.
  • With integrated KYC and ID&V checks, you can onboard new customers remotely.
  • Artificial intelligence and machine learning allow for better-informed decisions.
  • A visual representation of applications by stage, turnaround times, demographics, and trends.
  • Continual monitoring of KPIs to ensure the migration from offline to online is successful.

About Luna Connect

With Luna Connect’s digital lending platform, local financial institutions can enhance member and customer relationships and combine them with a personalised online experience. In just a few weeks, community banks, building societies and credit unions can provide digital lending experiences that imitate the amiable branch experience in a convenient online setting. What’s more, there is no capital investment!

In addition to our world-class digital platform, Luna Connect places great importance on staying abreast of the latest technologies and being innovators in our field. Our team has substantial experience in developing digital lending capabilities, including internal processes, customer journeys, onboarding, user experience and AI-driven analytics. While digital transformation journeys can be challenging, we strive to make them as uncomplicated as possible.

By partnering with Luna Connect, you are choosing to nurture a mutually beneficial relationship that will help you grow your business. You will also be assisted in fostering closer relationships with your customers with an individualised online experience. 

If you’re interested in partnering with the Luna Connect team or would like to learn more, visit our website or contact us.

Using Digital Marketing to Grow Your Loan Book

Digital marketing, in particular social media marketing, is the best, fastest and most cost effective way to acquire new customers and to offer new products and services to your existing customers. Instagram, Facebook, Google, TikTok, YouTube and other social networks all provide digital advertising to consumers and businesses, but these platforms are different in many ways.

Facebook owns Instagram, but their respective user bases are very different. Facebook attracts older and Instagram focuses on younger audiences. Google is used by almost all of us, but their subsidiary YouTube’s users are more than 80% male. TikTok may seem like a teenage distraction, but they are the most powerful social network for Millennials and the GenZ crowd to such an extent that musical artists launch new music on TikTok, and if they go viral, they are successful. 

Some financial institutions have resisted digital marketing, or don’t quite get it right. But it’s easier than it may seem, and it doesn’t need to ‘break the bank’, so to speak.

As a local or regional financial institution, it’s imperative that you ‘go digital’ to fend off large banks and their massive marketing warchests. Most major banks make it their business to drive costs out of their businesses. This often comes as a consequence of customer relationships and customer service. Branches are closing, call centres are understaffed, and often it seems impossible to talk to a human being when you really need to.

Conversely, credit unions and other local financial institutions have built relationships with families over a period of years, if not generations. There is a branch in your community. Somebody is always reachable by phone. 

By adding digital marketing and digital communication channels such as Instagram and YouTube, and Instagram, local financial institutions have a clear advantage over major banks. There are four steps you can take to quickly acquire new customers using digital marketing tools:

  • Identify your target audience
  • Improve your customer experience
  • Use tailored messaging
  • Segment your audience

1. Identify your target audience

There is no greater waste of resources than pushing your advertising campaigns to the wrong people at the wrong time with the wrong product. Data-driven marketing helps brands avoid this by cutting through the clutter to reach the eyes interested in your product or service. 

Moreover, once you have succeeded in identifying those online users, you’ll want to build a basis for acquiring them as repeat, loyal customers. The best way of doing this is by having insight into who those individuals are and to target them. 

Instagram, Facebook, Google, and even TikTok know their audiences better than they know themselves. They know who is looking for loans, for example, and what they need the money to buy. Furthermore, they know the window for which they will be making a borrowing decision. The social media platforms know where they live, what they do for a living, and how much money they make. And this is just one digital channel. Email marketing is, generally speaking, the most cost effective channel for communicating with customers and subscribers.  

By utilising social media, you can easily identify target audiences and grow your loan book.

2. Improve Your Online Customer Experience

Credit unions and local financial institutions have built strong relationships with communities, often spanning generations. After all, it’s human experiences that people hold on to – even cling to – especially in the Covid era. Sure, digital technology can handle transactional tasks better, cheaper, and faster than people can manually, but the human touch still matters. That’s why just 15% of US consumers bank exclusively with a consumer fintech.
Successful financial institutions of the future will effectively blend traditional relationships with digital efficiency, speed, and convenience. This is especially true when it comes to borrowing, which has more of an emotional component than, say, savings or investing..
The truth is, most major banks have outsourced so many processes and driven so much cost out of their business that, unless you are a high value client, their service levels have fallen dramatically. This is the opportunity for local financial institutions like credit unions to augment strong relationships with really great digital experiences. The secret is to always be customer centric at every step of the customer journey.

3. Use Tailored Messaging to Build Highly Targeted Campaigns

With highly targeted, unique campaigns consisting of personalised messaging for each customer, businesses can build solid customer relationships and a loyal customer base. 

Organising your data will help you create all your content with greater intent for better engagement. With information about your customers’ interests, lifestyle, and online activity, you can craft content that they would like to see. Your messaging should be unique and consistent across your chosen channels to capture your audience’s attention and to position your brand as a reputable source. Tailored messaging will make you memorable over your competitors fighting for similar customer recognition.

4. Segment Your Audience

In the digital age, offering a personalised customer experience is achievable by segmenting your audience. Segmenting your audience tends to every interested pair of eyes at various stages in the sales funnel. As an example, perhaps several potential customers have not completed their applications; a friendly prompt to consider completing the purchase is appropriate targeted messaging at this phase. 

Because your customers are at different stages of the buyer’s journey, you must craft separate messaging to help urge them forward. Personalization is another integral part of successful customer acquisition as it aids the automatic updating of customer data. Personalization also provides direction regarding which platforms are most suitable to yield the best possible results for your offerings. 

How Luna Connect Tracks Digital Marketing Success

Your website analytics will tell you the ‘lead source’ of visitors to your website, for example, how many people came from Google, etc. Once the visitor arrives at your website, Luna Connect will tell you what happens once they are on your system. You will be able to see how many started a loan application, how many submitted, and every step in-between. With this data, your lending institution will be able to fine tune advertising spend by online channel to improve effectiveness and grow your loan book!.

Luna Connect Disrupts Lending Industry Incumbents

Legacy systems hold back local financial institutions from digitising and stifle innovation with outdated technology. Luna Connect combats this by staying at the forefront of technological advancements and delivering a digital lending platform cost-effectively with no capital investment. 

Luna Connect goes beyond offering just another loan origination system (LOS). They leverage the cloud, AI, data analytics, automation, and other advanced technologies to disrupt the lending industry. Indeed, credit unions and community-based banks have something the big banks and startups may never have – close relationships with individuals, families, and communities. Now they have access to the technology that enables a superior digital customer experience as well.

Legacy systems rely on old, insecure software versions that make customer data difficult to access and vulnerable to cyber-attacks. Furthermore, legacy systems simply don’t have the infrastructure required for true high availability, scalability, and resilience.

Luna Connect utilises the Google Cloud Platform to ensure continuity and high availability by utilising multi-site replication and failover. Ensuring clients are always on the latest version avoids the security holes and other legacy system limitations. Cloud hosting and modern software development techniques such as agile, and DevOps utilisation enable rapid innovation and high-velocity delivery.

Furthermore, lenders have been accustomed to laying out large amounts of capital for technology, but it doesn’t have to be that way. Luna’s clients do not incur capital investment due to Luna’s Software as a Service (SaaS) model. This approach reduces the cost and risks of digitally transforming banks, credit unions, and other lending institutions.

About Luna Connect

Often local lending institutions want to be online but don’t know how to go about it. Luna Connect has taken conscious steps to empower lending institutions by assisting them in their digital transformation journey from start to finish. Through Luna Connect, local lending institutions such as credit unions, banks and asset finance firms can leverage AI-driven insights, automate repetitive tasks, and provide a personalised customer experience in just a few weeks. They automate key aspects of the lending journey using our digital platform and provide AI-driven analytics for better-informed decisions and dashboards for performance. In addition, with Luna’s professional services division, clients can get started with customer journey mapping and ensure success with project implementation advisory services. 

See more at www.lunaconnect.io

Contact us at hello@lunaconnect.io or +353 91 398117

What Is UX And Why Is It Important for Digital Lending?

User Experience (UX) is a common term in the realm of technology and design. Despite the term’s popularity, many still don’t appreciate what it means or how to use it correctly. In today’s world, anything created within the digital space (including websites and mobile apps) should be designed with user experience in mind. You could lose customers before you’re able to show them how wonderful your business, service, or product really is without a thoughtful UX design. 

UX plays an important role in ensuring the success of your product and business, and you are more likely to acquire more customers and build a loyal customer base who will spread the word about your offering.

What Does UX Mean?

User Experience refers to the way people interact with a product or service. A real-world example of user experience outside of the tech landscape would be a restaurant.  The user experience here would be made up of reservations, menu choices and appearance, dishware, lighting, tablecloths, employee uniforms, service, etc. All these factors would influence how the customers feel about their interaction with the restaurant. In the digital world, UX refers to all the design elements that affect the way the user interacts with a digital product.

What Is UX Design?

UX is rarely referred to as a standalone term. You will more frequently hear the phrase “UX Design”, with people who work in the field referred to as “UX Designers”. That said, a UX designer is not a person who designs user experiences. Since UX deals with a user’s impression of a product, their experience cannot be designed. Rather, a UX Designer designs for UX. A UX designer creates products (either digital or physical) that are easy to use and practical. 

UX can be directly tied to the human experience, specifically human behaviour and psychological trends. How the user perceives each step of the experience can make or break any design. A successful UX designer must go beyond simply understanding how to create aesthetically pleasing designs, they need to understand the psychology behind the user experience.

What Makes A Good UX Design?

A good UX design ensures that people have the best experience possible with products and services. Poor UX will cause users to feel confusion, hesitation, and frustration and will ultimately reflect badly on the product or service. A good UX design incorporates the following principles: 

  • User-Centred Design: first and foremost in any UX design is to focus on the user. Focusing on efficiently combining form and function and focusing on the user experience from the very beginning stages will yield a well-designed, user-centric end result. 
  • Prioritised Consistency: the basic functionality and design of products should be the same across the board. Many popular and successful apps and websites utilise similar techniques and placements for their user interfaces. Consumers have grown used to such designs and expect new products to work similarly. 
  • Give The User Control: before, there was widespread fear that users would break the web pages and applications they used when given too much control. We now understand that the more control a user has, the better experience they have. 
  • Accessibility Is Crucial: Making your designs easy to use for everyone, including those who interact with products differently, is an important aspect of UX Design. Prioritising accessibility allows for more of your users to have a positive experience. 

Benefits Of Good UX Design

UX design is about solving problems so users don’t have to worry about what they’re doing. They can use a product intuitively without putting an overwhelming amount of thought into it. Prioritising the user is always at the forefront of UX design, a better product is always one that focuses on the end-user. Products created with great UX design will enjoy many benefits, including:

  • Increase conversion rates: effective UX design can make the difference between your users successfully completing your call to action or not. UX can help you increase conversions, thereby generating more revenue.
  • Reduce costs: giving users more control and empowering users to complete tasks independently with less support from you.
  • Inspire customer loyalty: creating positive, meaningful user experiences, UX contributes to customers wanting to stick by your business and continue using your product.
  • Stay ahead of the competition: UX being such an important feature and a popular topic of discussion, you’ve likely fallen behind the competition if you’re not already implementing it. Providing an excellent user experience is a competitive advantage.

UX Design and Digital Lending

At Luna Connect, we have made creating the best possible user experience a priority for our digital platform, for both borrowers and lenders. The platform’s digital layer offers your clients an easy-to-use digital lending and digital onboarding experience. As we know, ease of use is a crucial element in good UX and, ultimately, customer satisfaction. Users will find the entire online experience seamless and convenient. The platform is compatible with all device types, including mobile, tablet, laptop, and desktop. It also supports multiple financial products. At Luna Connect, we are proud of our reputation for both innovation and client satisfaction. By prioritising the user experience, we make the digital experience more enjoyable for your customers, allowing you to reap the many benefits of a good UX design.

To find out how you can delight your customers with user-friendly online processes talk to us today.

5 Top Benefits of Digital Transformation For Local Banks

Has your company undergone a digital transformation?

Especially in the financial sector, digital transformation is crucial to the survival of businesses. In a nutshell, it is the up-gradation of existing processes or introduction of new ways of carrying out business activities using digital technologies that enhance a customer’s experience, leading to higher conversion rates for the company. 

In banking, this integration of digitisation leads to fundamental changes in how financial institutes operate and deliver value to their customers. 

Moreover, it refers to the process of transforming an organisation into a digital business. It is not just about digitising the existing processes. It is also about the integration of new technologies and a new way of thinking that will help financial institutions to more effectively serve their customers, generate new opportunities for innovation, and stay ahead of the competition.

The main goal of digital transformation is to stay relevant and competitive in a world that has become predominantly digitised and where anything and everything can be done online.

So, what exactly are the benefits that digital transformation can offer those in the local banking and lending sector? We uncover five of these benefits below,

  1. Customer Experience
  2. Online Trust
  3. Efficient Customer Acquisition
  4. Personalisation
  5. Innovation & Agility

1. Customer Experience 

Customer Experience (CX) is by far one of the most essential aspects to ensuring the success of a business. And with AI, customer service can be more personalised and efficient than ever before.

AI can improve the customer experience by providing more relevant content for customers, giving them more accurate answers to their queries, and predicting what customers are looking for within the business offerings. 

Artificial Intelligence can have a positive impact on the customer experience by understanding their wants, needs, and habits. Moreover, it can analyse the data collected by the business to improve the customer experience in various ways. 

For example, it can provide more relevant content for customers who are looking for information about a given topic by analysing their social media posts, monitoring their queries to provide them with accurate answers and predicting what they are looking for before they even ask. 

2. Online Trust

Nowadays, people choose their banks depending on how they perceive the establishment. And how financial institutions position themselves online will shape the way their potential customers perceive them as a business. Social media platforms, websites, and ads all bolster influence on those using the internet. Therefore, if banks can deliver the right kind of digital marketing, it will help them build trust in people’s eyes online.

There are several ways to build a relationship with a customer but one particular strategy that has produced promising results – Online Reputation Management (ORM). ORM is a multi-faceted concept to create a positive public perception of a brand, business, or person. It includes monitoring reputation, handling any client feedback that could harm the brand, and using tactics to contain and solve concerns that could damage the reputation. 

3. Efficient Customer Acquisition

Banks need clients just as much as clients need banks. Therefore, these organisations can no longer be stagnant regarding how they choose to attract their consumers to their services. The good news is, there is a more affordable and easily accessible way to attract these customers to your institution. 

The online sphere provides fantastic platforms to reach out directly to these possible consumers, right on their devices. This access makes influencing them easier, which in turn, leads to an increase in the possibility of them coming to you. This system is also called Content marketing and is basically contemporary word of mouth. Content marketing helps to encourage engagement and attains trust with both candidates and clients.

4. Personalisation

Digital transformation allows financial businesses to foresee and understand what the people want, and they can develop their services and offer according to customer prerequisites rather than playing the game of guessing. Contemporary innovative technological evolutions allow banks to boost customer engagement with personalised offerings.

5. Innovation & Agility 

Digital Transformation helps banking organisations to embrace technology and market trends and scale these efforts with incremental triumphs. Only if an establishment can upgrade itself will it be able to cater to the needs of the new-age clients. Sophisticated digital technologies have changed the traditional way that banking operated. 

The emergence of shopping outlets, social media channels, and integrated mobile apps has opened several doors for banks to reach out to their customers.

Those in the banking and lending sectors need to welcome this new digital world by moving towards a digital transformation. For example, many people today are more likely to watch a short explanatory Youtube video than read a long pamphlet. What does this tell us? It tells us that videos are becoming increasingly popular as they are straightforward and promote engagement.

The lending sector is one of the most important aspects of the banking industry, and they both heavily benefit from implementing innovations such as digital transformation. Because this sector provides essential services to customers by providing loans and other financial services,  it has become increasingly difficult for the lending sector to keep up with its pace of growth. This has led to an increased demand for automation to maintain efficiency.

Top 5 Industry Trends That Will Shape 2022 For Digital Banking

Increasing capital and improving the customer experience have been the focus of banks and credit unions’ efforts to catch up with their competitors. Advanced analytics, innovation and modern technology, as well as a new approach to the workforce, have been the focus points. 

Due to the rapid development of technology, the competitive landscape continues to expand, offering simple engagements and seamless experiences, causing existing relationships with banks and credit unions to crumble. For any organisation, there are a variety of options available for partnering with third-party providers to quickly deploy solutions to meet customer demand instead of developing them internally. Institutions can proactively modernise their existing systems and processes alongside partnering with fintech and big tech competitors.

In this digital age, it is more important than ever to ensure that financial institutions are digitally future-ready. As the supply of technology increases, the demand for innovation grows. The more technology is available to consumers, the more they expect that technology to be used to serve them. For instance, APIs, especially faster payments, and easier unbundling have enhanced APIs, services and payments. APIs have improved service delivery, especially payments, and have simplified unbundling. Originally regarded as high-tech, they are now becoming the standard for Digital Disruption in Banking and its Impact on Competition for data sharing in open banking applications. 

Each organisation must make the decisions in light of their existing and desired business models. If a traditional financial institution decides to follow a certain path, there will definitely be pressure to act quickly and decisively. As leaders in the finance and lending space with our digital lending platform, Luna Connect has put together predictions of five trends that will strongly influence 2022.

Quick Wins Are Top Priority

Solutions are Quick Wins if they are easy, fast, economical, and can be easily reversed. A quick win is a visible change and is expected to have immediate effects.

In order to ensure a positive customer experience, banks and credit unions should invest heavily in digital banking transformation. Investing in the right areas depends on each institution’s maturity level of digital transformation.

Success in digital banking transformation hasn’t changed fundamentally; however, strategies and tactics have shifted to focus on ‘quick wins’ that can set the stage for future improvements.

A reimagined back office, combined with process automation, is part of the toolkit to improve customer acquisition and retention. Making account opening and loan applications more user-friendly is part of the effort, with the goal to reduce the time from 10-12 minutes to under three minutes, Professional Bank launches new digital account opening.

Additionally, a focus will be on introducing innovative products, improving financial management tools, expanding access to relevant and compelling content, and increasing proactive recommendations using data and artificial intelligence to improve customer engagement overall.

Developing a digital banking strategy is an ambitious long-term endeavour that can present some challenges on the way. Much of the time, it takes at least twice as long and costs twice as much to transform an organisation as originally anticipated, in part because of challenges in cultural readiness, as mentioned Gartners IT Roadmap for Digital Business Transformation. In many organisations, digital transformation is not yet tested, so their ability to transform is uncertain.

Winners And Losers Will Be Determined By Data And Artificial Intelligence

Data and analytics are the backbones of digital banking transformation. By 2022, artificial intelligence and data will be the main differentiators in the banking industry according to McKinsey, Next-gen Technology transformation in Financial Services. Microsoft outline The top five things a customer needs from their bank, including customers expect their financial institutions to understand them, reward them, and know their daily lives and financial profiles in real-time. Many consumers have become accustomed to intelligent experiences during the pandemic, such as those offered by Netflix, Google, and Amazon. Financial institutions can replicate this by leveraging their internal resources and partnering with third-party providers.

With AI-powered virtual assistants, many basic banking interactions will become even more human-like with conversational AI. Bank of America has a substantial lead in this area with their AI-powered virtual assistant, Erica. These interactive enhancements go beyond simple functions like checking balances to also perform more involved tasks like acting as a financial concierge. The latest financial reports from Bank of America show that more and more customers are using its virtual assistant, Erica, more frequently than ever before. Erica’s presence and the AI’s capabilities have greatly improved in the last year and the last quarter, so that now they are a key part of the bank’s digital strategies.

Many organisations are already using artificial intelligence to simplify back-end operations, and banking is set to follow suit. The innovation process will improve as more employees get involved. Achieving real-time insights into product performance, service levels, and customer needs will add significant internal and external value.

Mobile-First Design with Cross-Device Support

Most financial institutions are transforming their digital banking operations to start with mobile-first methods. Mobile-first transformation includes improving products, services and experiences through a mobile lens, while other channels benefit as well. This requires a rethinking of everything, both internal and external, that has an impact on the customer, including business models to more accurately reflect consumer and business mobile banking trends.

In a world where more consumers access the internet using their smartphones rather than their desktops, mobile shouldn’t be considered as a channel to add to digital transformation strategy. Rather it should be a driving force behind customer-centric applications and future development.

Taking a mobile-first perspective opens doors to innovative new solutions for increasing customer acquisition, engagement, relationships, and loyalty. A mobile-first approach will also contribute to increased efficiencies through the integration of artificial intelligence, robotic process automation, and biometrics. These enhancements are not so much about the device as they are about how to make the most of the device’s capabilities.

Taking a mobile-first approach to digital banking means that you can align your business model around your customers’ needs as well as support digital banking solutions in the future. Financial institutions are increasingly bypassing legacy branch processes, deploying digital devices to staff for improved internal and external experiences. Generally, applying a transformation to both online and physical channels is relatively easy.

A New Approach To Back-Office Processes

Despite increased consumer demand for experiences powered by digital devices, many financial institutions still use outdated back-office processes and processes based on people and paper that impede the implementation of fast, simple and seamless solutions. 

To increase efficiency and improve customer experiences, financial institutions should not simply digitise their existing back-office processes but rather start from scratch, using new technologies and automation.

Financial institutions could employ much smaller departments to run value-added tasks, such as deal origination, KYC validation, data collection, and distribution.

Robotic process automation results in cost reduction, increased efficiency, improved accuracy, and improved customer experiences. 

A New Workforce Model

Many jobs have seen their skills change from 2016 to 2019. While new technologies and the shift to digital banking are driving the demand for new skills, many new jobs require soft skills, not just hard skills. Employees of financial institutions should have the ability to thrive in the face of a disruptive business environment through collaboration, innovation, adaptability, and perseverance.

Many workers are abandoning the traditional work environment in favour of either hybrid options or the gig economy or abandoning the active workforce altogether, as shown by the term “The Great Resignation“.

To be competitive in the digital banking era, financial institutions will need to recognise that many of their employees will consider flexible working arrangements when selecting an employer. The shift will require many banks and credit unions to rethink their existing workforce models.