8CIOReview | | NOVEMBER 2021IN MY OPINIONTHE DIGITAL PARADOXBy Alex Carriles, EVP, Chief Digital Officer, Simmons BankNot too long ago, as a banker, it was easy to segment customers based on a few criteria such as where they lived, their life stage, and income. At the end of the day, there were only a few channels that could serve those customers: the branch or ­ for simpler tasks ­ an ATM or call center.Yes, there were more exclusive branches for high net worth or ultra-high net worth customers, and personal bankers for some of them, but really, there was only one place to serve them.Now, with the proliferation of digital channels, we have online, mobile, text, smart watches, and voice devices such as Alexa and others. I have even played with a smart TV banking app that has long been forgotten. But here lies the problem: not all users feel comfortable with these platforms, and many times financial institutions approach servicing the wrong way by trying to steer users to the lowest-cost channel (mobile) and away from more expensive ones, such as branches and call centers, without considering the preferences and needs of their customers.In recent years we have seen the relentless push towards mobile banking, given its ubiquity, low cost, and available services. However, the reception has varied across demographics. If we plot a graph between age and usage, we can see that mobile adoption is inversely proportional to age, while branch adoption is directly proportional. The interesting thing is that, for bankers, some of the most valuable customers tend to be older, with a well-established credit history, higher disposable income, and more complex financial needs. Despite this, few features in today's mobile banking apps are designed to give these older customers an appealing experience. Instead, banks often push aggressively towards digital channels in ways that attract younger demographics with limited income, and in many cases, incipient creditworthiness. Alex CarrilesAlex Carriles serves as executive vice president and chief digital officer for Simmons Bank, where he oversees Simmons' digital banking strategy, customer experience through digital channels and customer acquisition through digital tools.
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