The last several years have been a whirlwind of change in the banking world, and this trend will only intensify as we move into a new decade. Technology advances are occurring at breakneck speed making it virtually impossible to keep up with. Who really heard of the terms “data analytics” or “cybersecurity” 10 years ago? Now they’re at the forefront of business planning. While the challenges to FI’s will be many, insurance on your loans doesn’t need to be.
According to a recent poll conducted by PwC of banking executives, the 3 top challenges facing US banking in 2020 are regulatory compliance, attracting new customers and increasing customer profitability, in that order. The same poll also noted that less than 20% of the executives responded they are “very prepared” to tackle what they identify as priorities of success.
It should come as no surprise that banks and credit unions list this as the top challenge for them in 2020 since they are one of the most highly regulated industries in the world. A lack of adherence to the many compliance areas faced by Financial Institutions can be devastating to bottom lines because of stiff penalties, not to mention customer dissatisfaction in many instances.
Attracting New Customers
The lifeblood of any business depends on its ability to retain customers and add new ones. How financial institutions incorporate technology to enhance the customer experience will be a huge determining factor for success in this area.
Increasing Customer Profitability
With interest rates still near record lows, margins for profitability remain very tight. Again, technology and the use of data analytics to determine where each customer’s profitability can be maximized will be very important. For example, does it make sense in this day and age to offer free checking if you can provide products and services that provide value to these customers for a nominal fee?
With these important challenges--just to name a few--having the proper coverage on your mortgage, auto and equipment portfolios doesn’t need to be another obstacle. This is a great time to review the programs you have in place to see if they are the best fit for your organizational needs. At Golden Eagle Insurance, we can help you navigate the many different kinds of coverage available and do a complimentary comprehensive review with you.