Despite being cornerstone institutions in the global economy, banks often lag behind in the digital arena, especially when compared to eCommerce veterans. Recent studies highlight this shortfall in terms of technical performance metrics critical to user experience and retention. With customer preferences evolving and new regulations like the Digital Operational Resilience Act (DORA) coming into effect, banks are under pressure to close this digital performance gap.
Understanding Performance Metrics
A recent analysis by Catchpoint of over 50 banking websites identified the top performers based on key metrics such as availability and webpage response times. Franklin Templeton, Bank of New York Mellon Corp, and Thrivent Financial led the pack, showcasing industry-standard performance by delivering fast-loading websites with near-perfect availability. This high level of digital performance is what today’s consumers have come to expect, informed by their experiences with leading eCommerce platforms.
eCommerce Strategies for Banking
The banking sector, much like healthcare, has been slow to adopt the fast-paced innovations seen in eCommerce. However, the significant impact of downtime during peak traffic periods, as observed during events like Black Friday in the eCommerce world, underscores the importance of resilience and performance. Banks are now looking towards eCommerce for strategies that could enhance their digital services, focusing on user experience, speed, and flexibility. Digital-first banks and innovative approaches, such as transforming banks into cafés, demonstrate the potential for enhancing customer interaction through digital optimization.
Regulatory Changes and the Future of Banking
The introduction of DORA and the growing trend of open banking are set to revolutionize the banking sector by promoting technological innovation and improving customer service. By mandating financial institutions to strengthen their cyber defenses and manage ICT disruptions effectively, DORA aims at ensuring digital operational resilience. Meanwhile, open banking presents an opportunity for banks to compete more directly with emerging fintech companies by leveraging third-party applications to enrich the customer journey.
As the banking sector navigates these changes, the focus on digital performance and user experience becomes not only a competitive edge but a necessity. The evolution towards more agile, customer-centric services highlights the industry’s potential for transformation, challenging traditional banks to innovate or risk obsolescence in the rapidly evolving financial landscape.
