R.R. Donnelley & Sons Company (RRD) today unveiled five trends expected to shape financial services institutions for the second half of the year. RRD is the leading trusted advisor to securely deliver communication and transactional documents for the financial services industry, giving the company unique insight into the challenges and opportunities.
“Since the pandemic, the financial services sector has experienced enormous advancements in technology that have helped propel the industry forward, but also introduced new complexities,” said Al duPont, Chief Commercial Officer, RRD. “Today’s tech-savvy consumers expect financial institutions to service them online, in-person, and on mobile devices. Firms are choosing RRD to partner with because of RRD’s careful monitoring, understanding, and leveraging of consumer preferences as the financial landscape evolves.”
RRD has identified five trends leading the transformation of the financial services industry, including:
Trend #1: Growing Consumer Demand for Mobile, Self-Service Transactions Drives Tech Investment
The pandemic increased the appeal of self-service offerings, with customers expecting a minimal touch, mobile-based solution to meet their financial needs. However, meeting this demand remains a pain point for the sector: according to a Microsoft and Worldwide Business Research (WBR) Insights survey, 63% of financial services leaders say they are challenged to provide enough self-service options for customers.
The financial services industry is likely to continue to invest in digital platforms, such as incorporating one-time transactions like mobile-guided loan applications as well as on-demand transactions tying payments to payment reporting and reconciliation, which translates to transparency for the consumer.
Trend #2: Attracting Customers in a Competitive Banking Space Means Meeting Them Where They Are
A crowded banking industry creates tough competition for attracting and retaining customers, therefore knowing your customer and their channel preference is critical to reaching them successfully. One way to do this is leveraging multiple data sets to identify how effective one marketing treatment is from the next for each individual. For instance, consumers may be more receptive to promotional materials they receive at their home mailbox instead of their already overflowing email inbox. The same could be true for receiving brand messaging through out-of-home (OOH) advertising or social media.
In fact, a survey conducted by RRD found 51% of consumers were more excited to receive direct mail in 2021 than they were in the year prior. Banking clients, both emerging and well-established, are working with RRD to deploy personalized and strategic direct mail campaigns that complement digital marketing strategies, which can lead to increased response rates and ROI on initiatives.
Trend #3: Bringing Insurance Annuities Up to Speed in 2022
Outdated manual processes in the insurance industry can lead to inaccuracies, potential legal issues, and missed opportunities for new product offerings within a highly segmented broker-dealer network. Insurance clients are looking to navigate the adoption of new technology by developing customized self-service, tech-forward options that adhere to regulatory requirements.
Streamlining operations brings a greater ease of doing business by saving time and resources, improving compliance, increasing efficiency and speed to market. It also ensures distribution accuracy and increases the likelihood of user adoption and client conversion.
Trend #4: CX is the New Battleground for Financial Institutions
Engaging with customers to foster a more personal and lasting relationship is key for increasing customer retention and customer portfolio expansion. In fact, according to BDO, improving the customer experience is the second-highest digital priority for financial institutions, directly after optimizing processes to create operational efficiencies.
Financial organizations should leverage CX technologies, including data-powered personalization, customer onboarding and feedback automation to capitalize on this trend. Institutions investing in an enhanced digital experience are best positioned to deepen customer relationships, boosting customer retention and customer lifetime value.
Trend #5: Maintaining Compliance Amidst Regulatory Change
Compliance requirements and regulations are updated constantly, and professionals in all areas of financial services are under severe pressure to ensure they remain up to date. Wealth management professionals, for example, are being forced to carry out more compliance-related tasks than ever in various areas, including customer protection, security, transparency, and governance.
Within retirement services, state and even firm regulations must require sales channels to have the right products with the proper regulatory approvals to remain compliant. RRD enables clients to navigate state, local, and national regulations to ensure that all business communications are precise, controlled, secure, and compliant. For example, SOC 2 and AICPA Trust Services Criteria are imperative to engaging with an advisor.
For almost 40 years, RRD has closely monitored financial trends, in order to strategically advise clients through an evolving marketplace. This summer, RRD refreshed its Financial Services and Insurance offering to align with today’s tech-savvy client and refined its market sectors to encompass Asset & Wealth Management, Banks, and Insurance.
For more information on the solutions RRD provides, please visit: www.rrd.com/industries/financial-services
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