How Can Banks Confront Digital Disruption?
Banking incumbents will need to attract and retain top digital talent and leverage digital technologies to improve customer engagement and experience if they wish to survive, reports Jim Marous in the Financial Brand. These are the findings of a new report by Accenture which draws upon research by Larry Downes and Paul Nunes. To be successful, digital banking organizations will have to advance an omnichannel customer experience, where consumers can choose how to engage with their bank or credit union. The adoption of a digital culture, driven by digital collaboration tools, and digital operational strategies, embracing open architecture that will allow them to integrate with third parties, will also prove imperative.
Square Pushes Ahead Despite Setbacks
The odyssey of Square, maker of the popular mobile device credit card reader, is chronicled by Fortune's Leena Rao as the company prepares to go public this fall. Despite shutting down flops like Wallet, Square's mobile wallet product, and Order, an app for restaurant orders, the company is rumored to be growing revenue three to four times faster — 50% year over year — than PayPal, which just spun off from eBay. Visa, which made an investment in the company in 2011, reports that Square is a top 10 merchant on its credit card processing system. Square has been reinvigorated by switching from a consumer product focus to business-focused financial services, including Square Capital, which offers cash advances to small businesses.
The History of Banking in One Chart
John Maxfield gives the history of banking in one chart and 13 slides.
Banks Struggle Have Low Brand Esteem
Of the top 50 Millennial brands, exactly zero are from banking institutions, writes Duena Blomstrom. "This needs to change," she asserts. "And soon." Blomstrom shows how if banks lose brand recognition to fintech companies, banks might not be able to recover in the long term. One solution, Blomstrom notes, is for financial institutions to partner with fintech companies that can enable brand empowerment and raise their net promoter score.
Big Banks See Big Gains from Pinterest
American Banker's Mary Wisniewski writes about Bank of America and Region's strategy to pin on boards such as "buying a home" and "travel plans." What's so exciting about this strategy is that it positions these financial institutions as financial advocates — institutions that care about their account holders on a personal level.