I spent yesterday recapping security… today; let’s look at the general market.
Forrester is reporting on an increase in the use of digital banking as the pandemic accelerated adoption. According to Forrester analytics data, in 2021, 76% of Spanish banking customers used their mobile banking app at least monthly, and 34% of UK online adults who applied for a loan in the past 12 months did their research on a smartphone. Digital (online and mobile) is now the top channel for US borrowers to purchase home loans.
Bank of America, too, with some insights here. More than 85% of its small business clients utilize digital channels, and digital engagement is up overall by 15% over last year. Nearly 50% of all sales made have been digital, with an almost 300% increase in digital sales for small businesses over pre-2020 levels.
Related, some new predictions on eCommerce trends and that acceleration from 2PM and Deloitte. Quoting from the Hustle:
- Brands to drop 3rd-party retailers: To better control inventory and customer experience, brands will focus on their own distribution channels (“Nike will be 70% direct by 2027”).
- Digitally native brands will open more stores: Why? Physical locations “heighten the brand’s online halo.”
- Apple’s privacy changes will have a long-lasting effect. The iPhone maker has already stymied Facebook’s ad tracking and is on track to build its ad empire.
- Rising customer acquisition costs force companies to invest in their content to reach future customers.
- Payment is a battleground: The US is only 8th in mobile payments adoption. Increasing adoption is a considerable biz opportunity.
- Big retailers like Amazon and Walmart will continue to buy up planes and ships to avoid future supply chain disruptions.
- The future of malls could be as logistic hubs for eCommerce, especially as product return sites.
- Web3 more than a fad: Brands will have to figure out their metaverse and blockchain strategies.
The acceleration of digitization is a big deal – and an opportunity for technology companies for sure. That said, everything here is about the business outcomes of the use of technology, not just keeping the lights on.
I’ll also point to this trend as further evidence of my stance on e-commerce for providers themselves. Customers buy digitally. Does your online presence allow for that? Or are you hiding behind a contact us form?