[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2017\/07\/21\/challenges-facing-banking-industry\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2017\/07\/21\/challenges-facing-banking-industry\/","headline":"Top 4 challenges the banking industry is facing","name":"Top 4 challenges the banking industry is facing","description":"How is the traditional banking industry keeping up with today\u2019s constantly changing technology landscape? Read up on the top 4 challenges banks are facing.","datePublished":"2017-07-21","dateModified":"2022-12-03","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/jessica-schubert\/#Person","name":"Jessica Schubert","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/jessica-schubert\/","identifier":234,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/9820f143795b84914a6ab7f68b5c01fdafff6961815523bdd4c0925414927d54?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/9820f143795b84914a6ab7f68b5c01fdafff6961815523bdd4c0925414927d54?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Commerce","logo":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","width":172,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2018\/10\/thumbnail-031e7349c2a0c1deed1888edb29c8588.jpeg","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2018\/10\/thumbnail-031e7349c2a0c1deed1888edb29c8588.jpeg","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2017\/07\/21\/challenges-facing-banking-industry\/","about":[{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/","name":"Commerce","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Commerce","http:\/\/www.wikidata.org\/entity\/Q26643"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/finance\/","name":"Finance","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Finance","http:\/\/www.wikidata.org\/entity\/Q43015"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/industries\/","name":"Industries","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Industry","http:\/\/www.wikidata.org\/entity\/Q2976602"]}],"wordCount":460,"keywords":["Banking","Banking Industry","Digital Banking","Finance","Finance Technology","Retail Banking"],"articleBody":"What are the top challenges that the banking industry is facing, and how is the traditional banking industry keeping up with today\u2019s constantly changing technology landscape?The answers aren’t pretty, and prove to be worrisome for the stalwart big banks that believed they were immune to needing to update their CX or modernize how they do business. After all, banks have been around forever, and are a necessary component of keeping economies going, right?Not so fast. The banking industry is in desperate need of digitalization and expansion into different areas, as younger generations are signaling a willingness to complete their financial transactions and house their money outside of the traditional system.Banks are facing challenges in several areas, but there are four that stand out in today\u2019s customer-focused market.      Top 5 banking industry challenges and strategies for success                A decade of unprecedented change has altered the landscape of the financial sector. Learn the top banking industry challenges and their opportunities for success.      The top 4 challenges facing the banking industry and financial institutionsNot making enough money: Despite all of the headlines about banking profitability, banks and financial institutions still are not making enough return on investment, or the return on equity, that shareholders require.Consumer expectations: These days it\u2019s all about the customer experience, and many banks are feeling pressure because they are not delivering the level of service that consumers are demanding, especially in regards to technology. As mobile phone usage soars and younger consumers expect simplification, the banking and finance industry need to adapt.Services like Venmo, Apply Pay, and Google Wallet have made it a customer expectation that banking services – from bill pay to deposits to purchases – can be completed on mobile phones, and financial institutions must offer simplified banking services to compete.Increasing competition from financial technology companies: Financial technology (FinTech) companies are usually start-up companies based on using software to provide financial services. The increasing popularity of FinTech companies is disrupting the way traditional banking has been done. This creates a big challenge for traditional banks because they are not able to adjust quickly to the changes \u2013 not just in technology, but also in operations, culture, and other facets of the industry.Regulatory pressure: Regulatory requirements continue to increase, and banks need to spend a large part of their discretionary budget on being compliant, and on building systems and processes to keep up with the escalating requirements.These challenges continue to escalate, so traditional banks need to constantly evaluate and improve their operations in order to keep up with the fast pace of change in the banking and financial industry today.  It’s not your father’s CRM.Boost customer relationships.Win loyalty.\u00a0Drive revenue.The future of business starts\u00a0HERE."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2017","item":"https:\/\/www.the-future-of-commerce.com\/2017\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"07","item":"https:\/\/www.the-future-of-commerce.com\/2017\/\/07\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"21","item":"https:\/\/www.the-future-of-commerce.com\/2017\/\/07\/\/21\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"Top 4 challenges the banking industry is facing","item":"https:\/\/www.the-future-of-commerce.com\/2017\/07\/21\/challenges-facing-banking-industry\/#breadcrumbitem"}]}]