By Stephen Fournier, President, Central New York Market, KeyBank
For quite some time, we’ve heard that more and more people are choosing to bank digitally, as opposed to inside a branch. While mobile and digital banking has become a convenient, popular and growing transactional option, today’s bank branches are far from an endangered species. In fact, today’s branches already look like the bank branch of tomorrow—technology-laden resource centers focused less on processing transactions and more on leveraging technology to personalize the banking experience.
A perspective on technology
Digital banking presents a classic case of competing priorities: clients’ enthusiasm for easy to use online and mobile banking tools, matched only by concern that using online and mobile banking puts their identities and assets at risk.
Consider this: in 2011, there were 419 data breaches—a number that climbed to 1,579 in 2017. More alarming, the breaches in 2017 exposed 179 million records.
No wonder online banking clients place a premium on security. According to Idology, who recently conducted research on data breaches and consumer sentiment, nearly 90 percent of those surveyed stated they either strongly agree or somewhat agree that companies have a responsibility to protect their personal information. By that same token, 96 percent of those surveyed also feel they are personally responsible for protecting their personal information.
Perhaps this explains why the branch—and a personal relationship with your bank—still matters. Technology and service have to be a partnership. Technology can’t be developed in a bubble. Customer needs and concerns need to drive innovations.
This is why forward-thinking banks like KeyBank are constantly evaluating security processes and working with clients to help them protect their personal information and assets. Biometrics, such as fingerprints, facial or voice recognition, are considered extremely or very secure, followed by knowledge-based and authentication. Account alerts, sent via text and/or email, have also emerged as a powerful tool to combat fraud.
It’s ironic that the answer to resolving the competing priorities of convenience and security is another layer of technology. But the importance of a trusted relationship with a banker should not be minimized. For many, the people behind the technology are as important as the technology itself.
Technological developments
Today’s banking customers have higher expectations than ever. Convenience, access and reliability are a necessity—especially when it comes to people and their money. For many, that’s not enough. They’ve experienced market disruption in so many aspects of their lives—often for their betterment—that they expect the same from their financial service providers.
Two trends that have emerged over the past couple of years offer a hint at what this disruption looks like to banks.
- Smart data. Technology is driving new tools that help banking customers create personalized banking profiles, define goals, track progress and set corrections so they can improve their financial wellness.
- Person-to-person (P2P) payments. Consumers now want diverse payment options, including a digital platform that can be an easy, fast and safe alternative to checks and cash. Banks, including KeyBank, have answered this demand by incorporating P2P payment solutions into the mobile app and online banking experience.
Both of these developments take consumers away from the bank branch and empower them to do more with their money. They also prove that today’s leading banks are technology companies as they are financial service providers. More innovations are sure to come.
The changing bank branch
Technology obviously is an integral part of branch operations. At KeyBank, it is driving our commitment to deliver ease, value and expertise through all of our interactions.
Ease and value are easier to quantify than expertise. However, expertise is where today’s banks need to differentiate themselves—and that expertise, as much as ever, can be delivered more broadly and deeply in the branch than ever before.
Today, the average bank customer has access to tools and resources to grow their wealth in ways that simply did not exist in the past. In most cases, these tools and resources are available to them for free. However, as much as these tools can help bridge experience and knowledge gaps, gaps remain.
Bank branches are the ultimate bridge between these gaps. As much as technology empowers the customer, it can equally empower the banker by providing data points and behaviors that, when understood, can inform decisions and improve financial outcomes.
As Benjamin Franklin said, “Tell me and I forget, teach me and I may remember, involve me and I learn.”
Is the traditional brick-and-mortar branch in danger? Time will tell. However, what will likely stand in its place may ultimately be better—the modern branch, where learning and involvement intersect and people of all financial backgrounds are empowered to thrive.
About the author: Stephen Fournier is president of KeyBank’s Central New York Market. He may be reached at either 315-470-5096 or [email protected].
The power of proper protection
It is not surprising that consumers expect companies to be responsible with their personal data. What may be surprising is that, according to an Idology survey, consumers hold themselves even more accountable for protecting their data than the companies that hold it.
This is a positive statistic, because consumers are effectively the best defense against fraud and identity theft. The following is a list of effective tips you can follow to actively prevent and protect yourself and your finances from identity theft and fraud:
- When in public, don’t provide credit card numbers or other personal identification numbers (PIN) over the phone.
- Don’t carry important documents, including your birth certificate or Social Security card, unless necessary.
- At home, install a mailbox with a lock, and pick up mail quickly. If mail containing personal information, such as your bank statement, doesn’t show up on time, call your financial institution immediately.
- Get a shredder. Prior to throwing out financial mail or paperwork, such as preapproved credit card or loan applications, shred them.
- Change passwords and other online credentials regularly, and make sure they are complex.
- Don’t use the same password and login credentials for multiple financial sites.
- Avoid clicking through to online financial management accounts via emails sent to you. Instead, directly visit the financial institution’s website.
- Pay attention to statements and billing schedules. If a check or other payment does not clear when expected, consider placing a stop payment. If an account statement or bill seems late, check to see if there’s any reason to believe it could have been stolen from your mail.
- Never, under any circumstances, reveal verifying personal information (name, social security number, address, date of birth, account numbers, etc.) to anyone who has reached out to you—whether by phone, email or text.
If you suspect fraud, act
If you believe you have been a victim of identity theft or fraud, report it to local police and your financial institutions immediately—before further damage is done. You should also check government-run sites, including identitytheft.gov and consumer.ftc.gov, to know all channels that might be compromised.
It’s important to understand that everyone—regardless of finances—is a target to cyber criminals, whether you are an active online user or not. With a little work, and the support of your financial advisor and bank, you can protect yourself from becoming a victim.
