Omnichannel banking strategy focuses on a critical objective: creating an integrated, end-to-end banking customer experience. 

In the high-quality omnichannel experiences created by industry leaders, their various banking channels and customer touchpoints work seamlessly. The result? Providing customers with a consistent and personalized “banking as a platform” experience.

The increasing number of fintech applications used by the average banking customer justifies considering an omnichannel banking strategy—research shows that banking customers use between 3 and 5 financial applications to manage their finances. And, according to the same resource, 59% of customers expect on-demand, “anywhere-anytime” banking customer service.

The challenge banks, credit unions, and other financial institutions must address is this: their banking customers are likely already actively engaging across multiple platforms, and to retain their loyalty, delivering a seamless experience where they can interact with their bank through multiple digital channels is imperative. From online banking to mobile apps, physical branches, ATMs, phone support, and digital assistants, the onus is on financial industry institutions to provide a consistent, cohesive experience made possible by an omnichannel banking strategy.

Omnichannel Banking vs. Multichannel Banking

While multichannel banking and omnichannel banking offer a similar value proposition, there’s a key difference:

1. Multichannel banking provides multiple, siloed ways for customers to interact with their bank

2. Omnichannel banking unifies these digital channels to deliver a seamless and integrated banking as a platform customer experience journey. 

The value of investing in the latter despite its complexity is, according to McKinsey, worthwhile: their research team reported that financial institutions that offer and successfully implement an omnichannel banking strategy can realize an up to 20% increase in customer satisfaction rates. As banks and credit unions strive to build and maintain customer loyalty in the competitive industry landscape, omnichannel customers, who, according to the same research, are 30% more likely to remain their institution of choice versus single-channel customers, are critical to attract, acquire, and retain.

While a full banking channel migration to an omnichannel strategy is a daunting proposition, banks and credit unions who still haven’t started can begin with more robust multi-channel banking adoption. By offering more ways for your customers to take advantage of your financial services, you’ll check critical boxes while laying the groundwork for an omnichannel model when the timing is appropriate.

In the immediate term, banks and credit unions can still offer novel value to their banking customers as they continue larger-scale digital transformation.

Common Banking Channels and Financial Touchpoints

Banks can integrate a wide range of channels through omnichannel banking to deliver a seamless and unified customer experience. As they move toward an open banking model that enables greater interplay with fintech providers, banking channels that can be bundled into an integrated banking as a platform experience include:

Mobile Banking Apps

Mobile banking apps allow customers to perform critical financial tasks like managing accounts, transferring funds, and accessing services. The apps users leverage are typically not all offered by one bank, hence the importance of integrating with external financial services from leading fintech providers like Backbase, Temenos, Fiserv, and nCino.

Online Banking Portals (Websites)

Online portals (a priority for any bank or credit union if not in place already) provide access to banking services through desktop apps or browser-based web apps. Fintech providers that offer supplementary application services include Alkami, Q2, Temenos, and Finastra.

Physical Branches

How do your in-person branch banking services enable complex transactions or personalized banking assistance? Considering branch transformation is critical. Fintech partners that can provide the tools to support a smart branch strategy include NCR, Diebold Nixdorf (branch transformation solutions), and Glia (digital branch banking support).

ATMs

ATMs are prevalent industry-wide. They facilitate the critical self-service functions (cash withdrawals, deposits, and basic account management) central to traditional branch banking. ATM technology providers to consider include NCR, Diebold Nixdorf, GRG Banking, and Hyosung.

Call Centers and Phone Banking

Call centers and phone banking offer account inquiries, transaction services, and other common customer support services via phone. While one of the most traditional, tried-and-true methods of providing customer service in banking, innovation is happening in phone banking arena as well via providers like Genesys, NICE inContact, Five9, and Avaya.

Messaging Platforms

Messaging platforms include SMS, in-app messaging, and chatbots. These automation tools provide account alerts, notifications, and basic service request updates. Messaging platforms are another traditional area related to financial customer service; however, fintech innovators are providing deeper levels of innovation and customer experience strategy. Key players include Twilio, Sinch, LivePerson, Infobip, and Talkdesk (various omnichannel communication tools).

Email

Email is (and will continue to be) a key communication channel across industries. But when streamlining communication, providing statement information, and service update notifications, players like SendGrid (Twilio) and Mailgun offer tools and services that are worth considering to bolster your email technology suite.

Chatbots and Digital Assistants

Especially with the onset of AI and ML (machine learning), digital assistants and chatbots are becoming increasingly sophisticated. AI-powered query responses and self-service support are now the status quo in the banking industry. Chatbot and digital assistant options to consider include Kasisto, Glia (formerly Finn AI), Personetics, LivePerson, Cognigy, and Intercom.

Social Media Channels

Social media channels provide an immediate, exceptionally relevant means of engaging customers. From offering support to enabling marketing strategy via the platforms users spend time on, social media strategy is critical to consider. To automate the time-intensive undertaking of building and maintaining a social media presence, financial institutions can leverage best-in-class tools such as Hootsuite, Sprout Social, and LivePerson (for social messaging integration).

Multichannel Banking — Channels are available, yet siloed

Multichannel banking offers customers multiple independent channels to access banking services, from physical branch-based services to ATMs, internet banking, mobile apps, and call centers. Each banking channel operates separately, sharing data in most cases but lacking the kind of seamless customer journey that banking customers will have come to expect via their experience performing tasks across other industries. The lack of a truly seamless banking as a platform experience could result in a lack of real-time data or in a customer having to repeat tasks when switching from one channel to another. 

Any fragmentation in a digital experience is an opportunity for a frustrated user to drop off, which banks and credit unions can’t afford.

Key characteristics of multi-channel banking:

• Multiple channels are available for customers to choose from (e.g., branch-based, ATMs, mobile apps, web apps and web portals, and phone)
  
• Channels aren’t truly integrated, operating independently, with limited interplay and real-time data sharing
  
• Customer data and interactions are not seamlessly shared across channels, which can result in the kind of inconsistent, disjointed experiences that lead valuable customers to go with a competitor

Omnichannel Banking — Channels are optimized for a fully integrated experience

Integration of various banking channels into a unified platform enables customers to start their transaction or inquiry in one channel (such as a mobile app), continue it in another (for example, a connected branch that communicates with the app in real-time), all while receiving consistent, highly-personalized service throughout the banking customer journey. The omnichannel banking approach also enables banks to centralize customer information into a secure customer data platform (CDP) and provide a truly customer-centric experience based on real-time information.

The banking industry is rapidly moving towards greater adoption of omnichannel strategies. Talkdesk’s 2024 CX in Banking Survey purports that 91% of financial institutions expect to have integrated channels by the end of 2025. This shift is driven by changing customer expectations, particularly among younger generations who demand a personalized and seamless experience across multiple digital channels.

Financial organizations can’t afford to be the 1-in-10 that fail to integrate their channels and fall behind in the increasingly competitive banking industry. 

Omnichannel banking benefits for banks, credit unions, and other financial institutions

Plaid, a leader in the Fintech space, reported that 69% of Americans would consider switching banks if their primary bank couldn’t connect to their preferred applications and financial accounts. For banks and credits unions striving to acquire new customers and retain existing customers, considering omnichannel capabilities is imperative.

Beyond satisfying foundational customer expectations, other key customer benefits include:

• Seamless digital integration: All channels are interconnected, allowing banking customers to start a transaction on one unified platform and complete it on another without any disruption or loss of information.
  
• Enhanced and consistent customer experience: By providing a convenient and personalized experience, banks can increase customer satisfaction and loyalty. Regardless of the channel used, customers receive the same quality of customer service, accuracy of information, and user support.
  
• Increased Customer Retention: In a world with an ever-expanding volume of digital channels, offering a seamless omnichannel experience can set banks apart from their competitors.
  
• Personalization: By centralizing customer data from various touchpoints, banks can leverage the power of automation to provide tailored recommendations, products, and support based on individual preferences and behaviors.

Non-customer-facing benefits include:

• Data-Driven Insights: Omnichannel banking enables banks to gather and analyze customer data across all interactions, leading to a better understanding of customer needs and improved service delivery via CRM tools.
  
• Improved Operational Efficiency: Centralized real-time data management allows for more effective utilization of customer information and streamlined processes.

5 guidelines for omnichannel banking implementation & change management

As you consider the transition to an omnichannel banking model, it’s vital to identify your organization’s existing strengths and areas of growth. However, all of the items below must eventually be addressed to build a world-class omnichannel banking experience.

#1: Build a strong technology infrastructure

Banks must invest in modern digital infrastructure to facilitate real-time data sharing and integration across channels.

Questions to ask:

• “Is our current technology infrastructure capable of integrating all digital and physical channels for real-time data sharing and seamless customer experiences? Where are we lacking and what can we address in the short, medium, and long-term?”
  
• “Are we positioned to complete seamless channel migration to a new banking experience platform? What must we address to do so?”
  
• “Which of our core banking legacy systems may hinder integration? How can we modernize or replace them without disrupting operations?”
  
• “Are we currently leveraging APIs, microservices, and cloud-based solutions? Do we need to adjust which ones we use to ensure scalability, flexibility, and future-proofing of our omnichannel platform?”

• “How will we ensure consistent and synchronized migration of customer data across all channels to support a unified customer view and compatibility with our existing CRM tools?”

#2: Craft a customer-centric approach

Understanding customer preferences, behaviors, and pain points is crucial for designing an effective omnichannel strategy. Even with approaches like guided selling strategy (combining sales processes with technology to create customized buyer experiences), building an empathetic and authentic customer journey should remain the primary guiding vision.

Questions to ask and answer:

• “Do we have a comprehensive understanding of our customers’ preferences, behaviors, and pain points across all channels? Are we positioned to use those insights to create a best-in-class customer onboarding experience?”
  
• “How are we collecting and analyzing customer feedback? How can we use it to inform our omnichannel design and ongoing improvements?”
  
• “Are we delivering a consistent and personalized experience at every touchpoint, regardless of the channel used? If not, where are we lagging?”
  
• “How will our omnichannel marketing strategy enable increased adoption of our products and services?”
  
• “What mechanisms are in place to measure customer satisfaction and identify gaps in the customer journey?”

#3: Address the complexities of data security and privacy

As data is shared across platforms, robust security measures must be implemented to protect customer information, especially in the banking industry where regulations are strict and customer trust and loyalty are fragile. 

Questions to ask and answer:

• “What security protocols and technologies have we put in place to protect customer data as it moves across channels?”
  
• “How are we ensuring compliance with regulatory requirements for data privacy and cybersecurity in every channel?”
  
• “Are we currently conducting regular security audits, risk assessments, and updates to our security infrastructure? Which will we need to adopt as we pivot to an omnichannel banking strategy?”
  
• “What is our plan for responding to and recovering from potential data breaches or cyberattacks as we pivot to an omnichannel banking environment?”

#4: Educate your staff and perform omnichannel training

Change management is vital to consider for any new strategy, especially one as sophisticated as omnichannel strategy. Your employees will likely need to be trained to navigate the omnichannel landscape and provide consistent service across all touchpoints in light of digital transformation.

Questions to ask and answer:

• “What training programs are needed to equip our staff with the skills to operate new automation technologies and deliver consistent service across all channels?”
  
• “How will we support staff during the transition, address resistance to change, and foster a culture of innovation and collaboration?”

• “Are there ongoing learning resources and feedback channels for employees to continuously improve their omnichannel competencies?”
  
• “How do we ensure our staff understands the benefits and core value of omnichannel banking, and can effectively communicate those talking points to customers?”

#5: Embrace an ongoing effort for continuous improvement

Banks should regularly gather feedback and analyze data to refine and improve their omnichannel offerings.

Questions to ask and answer:

• “What processes do we have in place to regularly gather and analyze customer and staff feedback on omnichannel experiences?”
  
• “Do we have an appropriately agile operating model, regarding product development and customer service, to pivot, adapt, and iterate?”
  
• “How do we use analytics and performance metrics to identify areas for improvement and track progress toward strategic goals?”
  
• “Are we prepared to iterate on our omnichannel strategy based on emerging technologies, evolving customer expectations, and competitive trends?”
  
• “How do we ensure that improvements are communicated and implemented effectively across all channels and teams to create greater channel consistency, despite increased technology ecosystem complexity?”

What’s next with omnichannel banking strategy?

As banks and credit unions strive to modernize the banking customer experience, proactively planning how to implement an effective omnichannel strategy is crucial. By focusing on seamless integration, personalization, and data-driven insights, financial institutions can enhance customer satisfaction, improve operational efficiency, and maintain a competitive edge.

In 2025 and beyond, trends and technological advancements to keep an eye on include:

1. Increased adoption of machine learning (ML) and AI in banking to build personalized invisible banking experiences and predictive customer service, via generative AI, financially-focused propensity models (tools that predict the statistical likelihood of customer behaviors or events occurring), and other cutting-edge AI and ML capabilities
   
2. Expansion of real-time, cross-channel data sharing that enables seamless transitions between digital and physical touchpoints and more sophisticated banking as a platform experiences
   
3. A continued (and increasingly greater) emphasis on cybersecurity and data privacy, especially as omnichannel ecosystems become wider, and as integration deepens across new and existing channels
   
4. Growth in digital adoption, and the need to respond to that digital-first banking experience, with more institutions focusing on investing in the innovative tools and technologies entering the arena
   
5. The availability of advanced analytics tools to drive targeted marketing and product recommendations across all channels, which can be integrated seamlessly into your omnichannel offering

Are you looking to learn more about omnichannel banking strategy? Does your organization need help diving into the ecosystem or building a unified platform that integrates various fintech tools and technologies into a seamless banking customer journey? 

Let’s connect.