Banks need a complete app overhaul to remain generationally relevant

It’s not just technology that is changing at breakneck speed, how different groups of customers engage with new technology is also shifting. While banks have spent fortunes on protecting their customers against fraud, this has slowed down spending in other areas. And the cracks are beginning to show. 

Currently, banks release a single app for their entire customer base, ignoring the opportunity to adapt it for different market segments that each have their own unique preferences, technology inclinations, and financial priorities. A good example of this is the one-size-fits-all approach when it comes to catering for the shifting preferences of the different age demographics. 

According to a WP Engine report, the gap between how the generations respond to technology is widening. About 64% of Gen Z (those born between 1996 and 2015) believes that AI will positively impact the world, compared to 46% of Baby Boomers (those born in the 1950s). Gen Z also expects websites to be predictive of their needs, with 41% willing to leave a site that fails to do so. 

There should be a completely different app for the older generation where transacting is simplified, options are abstracted, and security is paramount. Banks should also consider a gamified kids banking app, or an interactive Gen-Z app for young adults. The problem is that banks are often tied into a solution they bought that they can’t customise. And the current stale user experiences are quickly becoming a real problem.

Inflexible and generic app experiences 

Banks are missing out on customer experience (CX) opportunities with banking apps that lack the ability for customers to personalise the interface and views to suit their individual needs and preferences. This can lead to cluttered and confusing experiences, especially for older or less tech-savvy customers, increasing the risk of accidental transactions and other issues.

Most banks will create hyper-personalisation around a specific product offering, but overlook cross-cutting customer experience concerns. User interfaces should be customisable to specific audience segments across all products and all features for a better overall CX. Very few big banks are getting this right. Some have created youth banking apps, but most have missed the mark completely, essentially just creating more basic versions of the parent app and not properly thinking through the experience. 

A complete overhaul needs to be undertaken by the larger banks to create entirely separate apps and channels for large, cross-cutting concerns, such as age, demographics and language, among others. From there one can start the hyper-personalisation process, and then within these broader segments developers can look to create more engaging experiences with the help of AI.