Around-the-Clock Access and Emerging Financial Products Are the Future of Digital Banking

Servicing accounts has evolved far beyond standard banking hours and, to some, may still feel like a massive overnight shift from the standard operating model. In what has become an incessant digital culture, we have experienced incredible growth from neobanks and fintechs, where speed and convenience matter most to consumers. The expectation of 24/7 access to financial services is a response to the availability consumers have become accustomed to across more than just the financial industry.

To remain competitive and appeal to a new generation of account holders, banks and credit unions must integrate innovative financial products like digital account opening, card and loan origination, along with buy now, pay later (BNPL), investment exchanges and digital wallets into their core services. These money movement and account access methods work together to create an inclusive digital sales and service experience that satisfies account holder needs and drives long-term growth.

Customers expect the ability to seamlessly open an account, transfer funds, pay bills, make instant person-to-person payments, check balances or access customer service for common questions and account management tasks, thus banks and credit unions must offer improved mobile and online experiences to provide real-time access anytime, from anywhere in the world. Financial institutions that fail to offer such conveniences risk being left behind as more tech-savvy competitors step in to fill the gap​.

This level of real-time access is not just about speed. It’s also about ensuring reliability and security. Account holders need to trust that their financial institution can process their transactions efficiently while keeping their data and funds secure. Layered security measures like multi-factor authentication (MFA) and biometric login options should be implemented, as they can enhance account holder confidence in this area, while also protecting the institution​.

As account holders demand more real-time access, they are also gravitating toward innovative financial products that cater to their desire for flexibility when managing their finances. These products can include:

• Buy now, pay later. BNPL has quickly become a favorite financing option for consumers, particularly among younger generations. By letting account holders break down purchases into smaller, more-manageable payments, BNPL has become an attractive alternative to traditional credit. Financial institutions that integrate BNPL offerings into their digital platforms stand to gain greater wallet share and enhance account holder loyalty​.
• Digital wallets. With the rise of Apple Pay, Google Wallet and Samsung Pay, account holders increasingly prefer the convenience of tap-and-go payments via mobile wallets. Financial institutions need to ensure that they not only offer digital wallet integration but that it’s part of a broader, seamless digital banking experience including opening new credit and debit cards that can be push provisioned into the digital wallet of their choice​.
• Investment exchanges. Through a transaction data cleansing process, insights will be revealed into the types of investors that make up your account holder ecosystem. This knowledge can inform the types of investment tools and partnerships that should become part of the institution’s strategic roadmap.

The financial institutions that succeed in the coming years will be the ones that recognize the synergy between providing 24/7 access and offering emerging financial products. It’s no longer enough to provide excellent customer service during business hours. The modern banking consumer wants instant access to both their funds and financial tools that help them manage their financial life.

Strategic Growth Opportunities for Bank Leaders
This creates tremendous opportunity for financial institutions leaders. By optimizing digital platforms to offer both 24/7 access and emerging financial services, banks and credit unions can deepen engagement, attract new account holders and increase share-of-wallet from those who are already part of the financial institution. Leaders should focus on the following key strategies:

1. Prioritizing digital infrastructure. Ensure that the institution’s digital banking platform can handle the demands of real-time transactions and instant payments while maintaining a secure and reliable experience for users​.

2. Integrating emerging products. Leverage partnerships and new technologies to offer services like digital account opening, BNPL, investments and digital wallets. Such products are not only in demand but offer an opportunity to differentiate from competitors.

3. Personalizing the experience. Use transaction data and artificial intelligence predictive modeling to offer personalized financial products at the right time, whether it’s recommending in-application services for paying friends and family or providing educational content on digital wallets.

4. Investing in security and trust. Ensure the financial institution has the latest fraud detection and prevention measures in place, such as biometric authentication and real-time alerts for suspicious transactions. Trust is the cornerstone of account holder retention​.

Building the Future of Digital Banking
Banking leaders must act swiftly to integrate both 24/7 access and emerging financial products into their digital strategies, particularly to capture the next generation of account holders, including millennials and Generation Z. These audiences will not settle for legacy platforms and tools, and instead want instant access to their finances combined with innovative tools to make managing money easier and more flexible.

By creating a cohesive strategy that alchemizes real-time access with cutting-edge financial products, bankers can ensure financial institutions are not only meeting the needs of today’s customers and members but also build a culture and reputation of being data-driven, progressive and secure.