Embracing Emerging Technology as Payment Options Take Stage

PYMNTS asked industry executives across the payments and digital commerce landscape to give us their take on the pivotal shifts, technological advancements and strategies that have shaped business in 2023. Their responses show critical trendlines to watch in the new year. NCR Voyix President of Digital Banking Doug Brown says real-time payments, AI and personalization are key to optimizing the customer experience.

The year 2023 has been a rollercoaster for the financial services industry. From bank closures and regulatory shifts to economic uncertainty and shifting consumer behavior, banks and credit unions have had to adapt quickly. In response to a tumultuous year, financial institutions and FinTech partners alike accelerated digital transformation efforts. Mobile wallets and contactless payments took center stage, data remains paramount and AI dominated conversations across the board.

As we look ahead to 2024 and beyond, banks and credit unions continue to grapple with how to best meet evolving consumer demand while optimizing margins and continuing to keep up with technological advances. Partnering with leading financial institutions, NCR Voyix is looking at the following as being key differentiators to successfully meet customer experience demands.

Payments Take Center Stage: As money movement options such as mobile wallets, real-time payments, the FedNow® Service, etc., take center stage, banks and credit unions face the challenge of facilitating choice. While not every institution can or should immediately adopt various innovations, they must develop a strategic plan to determine which payment methods are crucial for their unique user base and seek opportunities to deliver immediate value through real use cases. Regardless of which (or all) they choose to implement, ease of use and simplicity throughout the entire experience will be paramount to success.

More AI Use Cases Emerge: Despite ongoing discussions and concerns surrounding artificial intelligence, tangible AI-powered applications will continue to infiltrate banks and credit unions. AI possesses the capability to enhance efficiencies and make data more actionable than ever before. Rather than replacing individuals, AI will serve to augment them, enabling them to redirect their time and energy toward growth-focused and strategic initiatives. Similar to payments, immediate implementation is not required, but a “wait and see” approach won’t work either. Financial institutions need to have a roadmap that is focused and backed by data based on the needs of the community it serves.

Hyper-Personalization Becomes a Requirement: It’s no longer enough to suggest similar products based on past purchases or broad demographics. Hyper-personalization has to go beyond the obvious, tapping into a wider range of data points to create a truly individualized experience. Embracing hyper-personalization and building a genuine connection with customers and members, regardless of channel, will lead to increased engagement, improved conversion rates, unwavering brand loyalty and, ultimately, a more profitable consumer. 

Gig Work Continues to Gain Momentum: With an increasing number of Generation Z individuals expressing a preference for self-employment, and economic hardships pushing people to seek additional income sources, gig work is experiencing a significant rise. However, this often entails various financial intricacies that may go unnoticed until an issue arises. For financial institutions, there is a great opportunity to better serve this unique segment by providing gig workers with the tools and education to better navigate some of these potential pitfalls and maximize their profits.

To navigate successfully, bank and credit union executives should prioritize flexibility, continuous innovation and a customer-centric approach. For continued success and to best meet consumer demands, embracing emerging technologies and collaborating with leading industry partners will be a must.