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The next few years are set to bring exciting challenges and developments in the realm of technology. Much attention has been focused on how technology usage varies among the generational segments, but we may be at the point where technology and user experience begin to remove generational segmentation. The Scientific & Technical Publishing Association (STM) has put out an insightful report on the trends that will have a major impact in 2024. Specifically, the focus will be on offering more personalized user experiences by connecting multiple technologies together. The study is interesting because it is an “inside out” approach. Instead of focusing on individual technologies to improve the experience, the study focuses on the personalized needs of the user and the technologies which can support those needs. Let’s take a look at how the study connects the dots between technologies and user needs.

The STM study identifies seven different user needs, and those identified needs are not generational segment specific. Let’s examine the seven identified needs from the study.

This user need focuses on personalized educational and informational resources. However, instead of just providing information, these resources need to provide instant gratification. Consider financial wellness, for example. Educational content and information resources would be generated to address an individual’s specific financial wellness needs, and actionable solutions made available to them. If the financial wellness education describes refinancing a credit card, the ability to refinance their card (based on the review of their credit report) would be included in the presented content. Instant gratification.

With the proliferation of mobile tablets and phones, all generational segments have digi- natives. Digi-natives prefer visual and interactive features. They don't have the patience for lengthy text-based interfaces. Everything must be accessible on demand and available across devices with an emphasis on mobile. Visual and interactive features reduce the amount of time to understand the information presented and to act. A graphic depicting the weather is more efficient than reading a synopsis about it. A graphic depicting an increase or decrease in credit score is more efficient than reading the detailed credit activity for the month. Embedding visual content within digital banking makes the information presented easier to understand, enabling better utilization of the platform by all generational segments.

Trust is non-negotiable; it’s table stakes. If a consumer does not trust a solution or provider, they won’t even get in the door. Not a day goes by without a story about a data breach, hack, or identity theft incident. In this era of rampant cyber-attacks, data security is a matter of utmost concern. Two-factor authentication (2FA) has emerged as a crucial element in this regard, offering an additional layer of security to the traditional username-password model. By requiring a second form of verification - such as a unique code sent to a mobile device or an email address, 2FA significantly decreases the likelihood of unauthorized access to personal data. Other advanced security practices, like biometric security, make the authentication process even more efficient. As new authentication methods are released, such as facial recognition, consumers expect those to be easy for all generational segments to use. The device’s camera (already in position as the user enters their credentials) verifies the user’s identity and completes the 2FA requirement. No texts or emails are required to receive a code.

The study defines research integrity as establishing trust between researchers, institutions, and the general public. Agreement among the various resources proves the integrity of the information. In digital banking, the information presented needs to be consistent among all the information sources available. If the information included in the transaction history is different from the information on the account statement, the integrity of the data and the providers is called into question. If the 2FA process is down, prohibiting the user from accessing their account information, the integrity of security is called into question.

When considering product purchases or acquisition of services, word of mouth is often the most trusted resource. The primary trusted source for information is a friend or associate who uses the product. They can answer the hard questions about what works and what doesn’t. That recommendation will often make or kill a sale. Refer a friend campaigns are the perfect example.

Consumers want control and transparency of their personal data. That's where the concept of FAIR (findability, accessibility, interoperability, and reusability) data comes into play, offering a set of principles for how data should be managed and shared to ensure maximum accessibility and usability. Open banking is the perfect example of controlling data within financial services. By enabling a consumer to access all of their data across all of their financial services providers, and restricting what information is shared - down to the product level, the consumer has the ultimate control over their data. In the past, if the consumer wanted to share information among their various providers, they needed to use screen scraping - which provided no control over the data being shared.

All the user needs we have discussed can benefit from AI including personalization, trust, and control over data. Would consumers let AI run on autopilot to manage their affairs? It seems like a dangerous proposition. But consider the amount of information consumers already entrust to pseudo-AI-like systems (Alexa and Siri come to mind). Both of those assistants have access to vast amounts of information about their users. Purchase behaviors and multi-media content preferences are just two examples. Consumers tend to overlook that this information is being used to make product recommendations and media content suggestions. Let’s take that type of information and make a giant leap: What if offers and information were on a global level? What if AI used purchase behavior on a global scale and could tell you when to make a purchase based on the exchange rate, or better yet, make the purchase if you previously approved the price at which it should be acquired. AI could defend against cyberattacks and identity theft, and instantaneously thwart malicious attempts by a hacker. What is the tradeoff between efficiency and control? That is the consumer’s choice, but AI could have a profound positive effect on the user experience.

The technologies included in the final user need of being “easy” are always on the future trends list in some fashion. Many of these easy technologies are part of the previous user needs we discussed. Streamlined authentication processes, including 2FA, help to enable easy and simple access to data. Open banking enables consumers to share and control their information among their financial service providers, and insights provide recommendations without the need for the user to wade through data. This final user need is about simplicity of use, but not at the product or system level. By establishing a unique personal profile, the information gathered and presented meets the specific needs of the user. The 360-degree view of the user’s entire financial picture we described in a previous blog is available in real time and continuously updated. The traditional definition of open banking and embedded banking no longer applies. Financial management is neither proactive nor reactive. This is the end game. Value creation is continuously being refined and updated. And this makes things easy for the consumer.

If you look at the content of our previous blogs (and we hope you do) we describe technologies that make the user experience more personalized and efficient. By improving the access, security, and use of financial information among multiple providers through open banking, protecting against fraud, or using service tools such as chat, the member experience is incrementally improved. We also discuss how the future-forward use of AI serves to improve the accuracy of insights and recommendations, thereby increasing the personalization and efficiency of financial management. And we discuss how disparate systems can impair the user experience. The 2024 STM study encapsulates all of those concepts into seven user needs with the ultimate goals of hyper personalization and continuous value creation. We are so close.