If there is a single word that encapsulates the appeal of the digital economy, it’s seamlessness. The facts are straightforward: customers like seamless tech experiences, whether that’s making a contactless payment at the supermarket or tracking their physical
wellbeing on a fitness app.

Naturally, they would expect the same ease of use from their online banking. However, many major lenders have historically lagged behind the times in terms of digitalisation. During the height of the pandemic, the drawbacks of paper-based systems in a remote
environment prompted a swift embrace of digital solutions. The change was sadly, long overdue.

However, even as many major banks embrace more granular and dynamic decisioning to remain agile in the lending space, financial institutions must invest more into their savings offering.

What are the challenges?

In essence, a savings platform is a marketplace where a user can browse through a range of savings products and select the option that is most suitable for them. But not every lender has the capability to offer a truly diverse range of products, especially
amid a backdrop of fluctuating interest rates. A limited number of options can pose a real obstacle to users with specific needs. The interface can also be a problem. If a savings platform is overcomplicated or inaccessible, the average customer may give up
on it before being able to benefit from its features. Useability can make or break a platform, and so lenders must embrace digital innovation not only for the mechanics of their platforms, but also for the presentation.

What makes a brilliant savings platform?

In short, product choice, accessibility and flexibility are the three main pillars of a successful digital savings solution. The most comprehensive savings platforms will offer easy-access accounts, bonus accounts, cash ISAs, tiered rate accounts, children’s
savings accounts and business savings accounts. This variety indicates agility; lenders are obliged to build a platform with a very diverse offering that can react and flex to the ever-changing demands of the consumer market.

This also brings us back to the theme of seamlessness. The best platforms will stand out because of their rapid deployment capabilities and low times to market, ensuring the product range is always timely and appropriate to the current needs of the consumer
audience. Some platforms may even feature cutting-edge technology such as biometric scanning for KYC verification, Open Banking for swift transactions, and a robust CRM for customer correspondence. All these elements enhance the customer experience and improve
ease of use.

It’s also important to allow for a considerable degree of flexibility and interactivity when building a savings offering. Some platforms are a little rigid and use unintuitive interfaces. The solution is to invest in technology that gives customers control
to directly manage their savings in a clear and accessible way. Ideally, a great savings platform will not only offer a wide range of choice but also enable customers to view and manage their savings in whichever way they most prefer, be it through a mobile
app or an intuitive portal. This means the customer gets an integrated and cohesive experience, and the same experience regardless of the device they choose to use.

Once the intuitive interface is in place, the next step is to ensure the savings platform can turn over effective results with speed. A truly modern savings platform will allow customers to complete essential checks and create an account to deposit funds
through Open Banking in mere minutes. Once set up, customers should be able to use their mobile banking app to check balances, make transfers and set savings goals on a 24/7 basis. The convenience of the customer must always be the priority. If they struggle
to use the platforms, they simply will not engage with it.

Finally, beyond the technology, it’s also paramount that savings platforms be sufficiently flexible in their design to keep pace with evolving regulatory standards like the Banking Conduct of Business Sourcebook (BCOBS) and the Financial Services Compensation
Scheme (FSCS), ensuring providers can adapt quickly to market changes and new regulatory demands.

Looking towards the future

The majority of lenders have indeed woken up to the manifold advantages of digital technology, especially in the lending space. However, the digital revolution cannot be siloed within a single area of business. Every product offering, savings included, must
be capable of providing a seamless and intuitive customer experience, instantly and at the customer’s convenience.

Those lenders which fail to invest in agile savings platforms risk being left behind by their competitors, because as we have seen in recent years, offering a top-notch digital platform is less a question of luxury than survival.

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• Source: https://www.finextra.com/blogposting/25688/why-banking-platforms-must-be-agile-in-savings-as-well-as-lending?utm_medium=rssfinextra&utm_source=finextrablogs