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How to achieve digital maturity in banking

How to achieve digital maturity in banking: Strategies for 2025

How to achieve digital maturity in banking

The banking industry is undergoing a profound digital transformation, driven by changing consumer expectations, advancements in emerging technologies, and increased competition within the financial sector. Digital maturity has become a strategic priority for banks, extending beyond simply adopting new tools: it involves the ability to coherently integrate technology into every process, improve operational efficiency, and deliver more personalized customer experiences.

In this context, banks that embrace a mature digital strategy will be well-positioned for 2025 and beyond, while those that do not risk falling behind.

Why is digital banking important?

Digital banking not only meets the demand for greater convenience and immediacy but also redefines how financial institutions interact with their customers.

The importance of this transformation lies in three key aspects:

  • Today’s consumers seek seamless, personalized experiences.
  • Digitalization reduces complexity in processes, increasing efficiency and reducing costs.
  • The digital environment provides an advanced level of security, crucial for protecting user data and transactions.

Additionally, by integrating real-time capabilities like alert notifications and personalized communications, banks can strengthen customer trust, enhance satisfaction, and respond more swiftly to their needs.

The Current Banking Sector: Level of Digital Maturity

The level of digital maturity in the banking sector varies significantly among institutions, with many entities at different stages of their transformation. While some banks have already implemented advanced technologies, such as artificial intelligence for service personalization and predictive analytics, others are still in the early stages, focused on digitizing basic processes.

Digital maturity in banking is measured across key areas such as process automation, data integration, user experience, and real-time responsiveness. Currently, many banks are in a “digital transition” phase, where they are beginning to unify systems, leverage data to personalize interactions, and establish agile and effective communication channels.

By 2025, the challenge will not only be to complete this transition but also to reach a level of maturity that enables banks to operate as fully digital organizations. This means aligning all processes—from customer service to security and risk management—with an advanced digital strategy adapted to today’s dynamic environment.

According to The Financial Brand, the Spectrum of Digital Maturity in banking is divided into four segments based on the degree of digitalization of the institution:

  • Explorers (14%): Small banks beginning their digitalization journey with a reliance on third parties.
  • Innovators (39%): Institutions with a basic digital presence, focused on enhancing the user experience.
  • Digital-Oriented (38%): Banks with a solid digital strategy that utilize cutting-edge technology to optimize processes.
  • Data-Based (9%): The most advanced segment, integrating digital technologies throughout all operations and prioritizing data-driven decision-making.

Key Strategies to Enhance Digital Maturity by 2025

To effectively compete with other institutions, banks need to improve in areas that impact customer experience and security.

Achieving 24/7 Service and Availability

Currently, all banking institutions have online platforms, so the challenge is no longer creating these tools but continuously optimizing them to meet customers’ banking needs, who expect to transact and manage their finances anytime.

To achieve this, banks must have robust, scalable systems that ensure constant availability, enabling uninterrupted operations 24/7. This not only involves keeping applications and online platforms active at all times but also providing automated technical support, such as chatbots and virtual assistants, to instantly answer questions or resolve issues, thereby reducing call volumes to bank call centers.

With 24/7 availability, banks can also respond to emergencies, such as account blocks due to potential fraud, which reinforces user trust.

Using Cutting-Edge Technology to Improve Digital Security

Cybersecurity is one of the biggest challenges in online banking, as threats not only endanger customers and their finances but can also affect the solvency and reputation of banks. Losses from cyberattacks are not solely financial; they also erode trust in financial institutions.

To progress toward greater digital maturity, banks need advanced technologies that not only strengthen security but also facilitate compliance with strict data protection regulations, like the General Data Protection Regulation (GDPR) in Europe and similar laws in other regions.

Artificial intelligence (AI) and machine learning play a crucial role here, allowing banks to analyze large transaction data volumes and detect suspicious patterns that may indicate fraud, unusual activity, or account compromise. These technologies also help identify synthetic identities and thwart advanced phishing attempts. As these systems evolve, they continually improve in accuracy and speed, enabling banks to anticipate sophisticated criminal tactics and maintain customer trust.

Additionally, banks must adopt advanced authentication systems, such as multifactor authentication (MFA), biometrics, and behavior-based authentication, to ensure only legitimate users access their accounts.

Establishing Immediate Communication with Customers

Increasingly, real-time communication is not just an added benefit that enhances customer satisfaction; it is becoming an essential requirement. Customers expect immediacy in all aspects of their banking experience, from managing finances to resolving potential issues.

Through multichannel notifications like push, SMS, or email, banks can send payment reminders, suspicious activity alerts, or transaction updates instantly. This immediacy not only offers customers greater transparency but also enables them to make informed decisions on the spot, enhancing their sense of control over their finances.

Furthermore, real-time communication plays a critical role in security. Combined with advanced detection technologies, it allows banks to quickly identify unusual activities and proactively notify customers. This not only reduces fraud-related risks but also improves customer satisfaction by transforming a potentially negative event into a positive experience through quick, efficient action to protect their interests.

To achieve this, banks need to invest in real-time event processing technology and flexible technology architectures that effectively integrate these communication systems.

Leveraging Transactional Data to Improve Service Personalization

Transactional data analysis is one of the most effective ways to advance toward greater digital maturity. By processing data generated by customer financial interactions, banks can gain a much more detailed understanding of their clients, allowing them to offer hyper-personalized experiences.

This approach enables banks to tailor their products and services more precisely to the specific needs and behaviors of each customer. For instance, they can offer savings programs or loans that match individual spending habits and financial goals, creating a unique and highly relevant experience for each user.

Additionally, transactional data analysis is key to identifying cross-selling opportunities, enabling banks to recommend complementary products that address customers’ financial needs. This not only increases satisfaction but also strengthens loyalty and long-term relationships with users.

On the other hand, transactional data plays a crucial role in risk analysis and fraud prevention. Unusual behavior patterns detected in transactions can alert banks to suspicious activities, allowing them to act quickly to mitigate risks and protect customer funds. This type of continuous, proactive monitoring strengthens security and enhances customer trust in the bank.

To fully leverage transactional data, banks should invest in advanced analytics platforms that enable them to process and segment large volumes of information effectively. Doing so not only enhances service personalization but also strengthens the ability to offer products that meet the evolving needs of their clients, advancing their digital maturity.

Combining Technologies to Improve Customer Experience Beyond Platforms

The real challenge for banks today is not only improving the experience within platforms but also creating continuous customer engagement in the real world, when they are not using banking apps. A bank achieves digital maturity when it not only optimizes digital interactions but also extends the experience beyond the platform, where customers make critical financial decisions.

For instance, after a major purchase, transactional data analysis can detect the transaction, and through a decision engine based on past spending behaviors and the customer’s financial goals, offer personalized payment options, such as installment plans. This recommendation is instantly communicated via a push notification, enabling the customer to receive advice at the moment of making critical decisions.

These off-platform interactions, powered by advanced technologies, allow banks not only to stay present in their clients’ financial lives but also to provide timely, relevant solutions without the customer needing to open the banking app.

Conclusion

As we approach 2025, digital maturity will be a decisive factor in the success of banking institutions. Banks that embrace emerging technologies, such as artificial intelligence, real-time data analytics, and personalized experiences, will be better positioned to meet their customers’ evolving needs and compete in a highly digitalized environment.

In this context, Latinia plays a crucial role, offering advanced technological solutions that enable banks to improve customer interaction with agility, personalization, and real-time responsiveness:

  • Latinia’s NBA engine identifies the most relevant action the bank should take based on real-time customer behavior.

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  • The subscription engine enables the creation of dynamic communication and service rules based on customer preferences.
  • The Critical Events Gateway ensures that crucial messages, such as fraud alerts or payment denials, reach the customer immediately, enhancing trust and security.

By integrating these solutions, banks not only improve the customer experience but also optimize their internal processes, reducing costs and improving operational efficiency. Latinia not only facilitates the transition toward more digitalized banking but also helps banks maintain closer, more effective relationships with their customers, both within and beyond digital platforms.

The path to digital maturity is not simple, but it is essential for banks that wish to thrive in the future. Those who successfully integrate technology into all their processes, from security to customer service, will be the ones leading the banking sector in the years to come.

Discover how Latinia can transform your bank’s customer interactions. Contact us today to learn more or to request a demo of our powerful real-time messaging solutions.

Categories: Strategy

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