Banks have historically played an important part in people's lives. While consumer demand for financial services will continue, it is unclear to what extent traditional banks will provide these services in the future.
While most consumers still consider a traditional bank with branches to be their primary financial services provider, an increasing number of consumers are beginning to express both decreased dependence on their bank and increased excitement about what alternative companies can provide.
The threat to the relevance of traditional financial services providers comes from the expectations being set by non-bank digital-first organizations, the burden of legacy systems and organization structures and the impact of new fintech players.
Digital native companies are changing consumer behaviours and expectations by showing them what a great customer experience looks like. Customers are expecting instant gratification, outstanding service quality, simple, intuitive processes, 24/7 availability, self-service, transparency of products and pricing, personalization and tailoring, and a consistent experience across channels. However most incumbent banks are burdened by legacy technology and operations that make it difficult to deliver change quickly. This is exacerbated by a traditionally siloed organization structure and cultures characterized by heavy governance and avoidance of risks. On the other hand, credible players are entering the market that do not have such legacy issues and are able to deliver what customers are hoping for. While the market share they are taking away from banks remains limited in most cases, such players are becoming material in payments, lending and foreign exchange.
Hence in order to grow market share and deliver higher returns, banks needs to increase relevance with their customers and reclaim their central place in people's lives by learning to be digital with a human touch.
IoT, robotics, cognitive, AI, blockchain, cyber security, virtual reality and augmented reality are part of an impressive list of technology-based disruptors which are lurking behind every aspect of the customer experience. But at the heart of the digital revolution is a customer, and it is organizations that are developing digital to solve real life needs, wants and problems will resonate most with customers. To be a leader, banks need to focus intently on anticipating disruptive forces defining the needs of tomorrow’s customer, and then developing these ideas for operation. As the customer agenda becomes more and more central to organizational thinking, we might see the principal organizing philosophy move from a functional focus to a customer journey focus. Banks also need to adopt a new, more integrated organizational lens where Digital is no longer a Technology function or a walled department, but rather a central driver of enterprise-wide plans and strategies.
FinTechs to radically simplify products and deliver exceptional customer experiences, possibly by collaborating with like-minded partners to deliver practical solutions and high-quality products.
security, virtual reality and augmented reality are part of an impressive list of technology-based disruptors which are lurking behind every aspect of the customer experience. But at the heart of the digital revolution is a customer, and it is organizations that are developing To be effective in engineering a human touch into their digital future, banks need to embrace new technologies, design journeys around the customer, adapt organizational structures to best meet customer needs, develop company culture and engage employees in a way that will drive customer experience improvements. Finally, banks need to innovate like in order to meet our clients’ needs in the digital ecosystem of today and tomorrow, a collaboration between the financial and technology sectors will lead the way forward. Hence we have actively reached out to the FinTech community to scout for the high-quality solutions and have already implemented collaborative projects around risk warning systems, data analytics and customer on-boarding.
