In his American Banker article “There Will Be Blood: The Era of Engagement Banking,” thought leader Bradley Leimer discusses the future of the banking industry. Leimer suggests the next big challenge facing the industry is the full-on shift to a mobile platform. He goes on to say that the economic imperative to innovate and shift has finally come to an industry not known for innovation. Inspired by signs of mobile adaptation, an entirely new financial market and business model emerged — financial technology, or fintech for short.
The call to move online (and now mobile) has tapped the shoulders of dozens of industries in the last few decades. Consumers have watched as some industries flourish in the brave new mobile world while others flounder. Observing entertainment, e-commerce and other industries reveals a key to success in the mobile space: know what the customer wants, when they want it and how they want it. Essentially, it all comes down to meeting expectations — understanding the needs and behavior of a user base well enough to meet and exceed expectations.
Unlike the still-struggling digital journalism and advertising industries, the roadmap to managing expectations while still making a profit is already known to the banking industry. But this has recently become more vital as mega-banks continue to swallow their smaller competitors. In today’s “innovate or die” industry, how can small and mid-size financial institutions hold their ground?
The solution is simple: offer a convenient, engaging and complete digital money management experience that exceeds user expectations. More and more, account holders are going out of their way to do business with financial institutions that make it easy to track and manage their finances, preferably in just one convenient place.
According to Leimer, the banking industry is “face-to-face with an engaged customer base that expects a completely frictionless [mobile] experience.” He also says “[the traditional banking] model simply must change to … keep up with the simplicity, usability, and transparency customers now demand.”
Financial institutions who either develop new technologies or partner with fintech developers have the best chance of getting ahead of users’ expectations. Fintech solutions that enable responsible financial management and offer state-of-the-art software will be crucial in winning market share in the age of mobile banking.
No Country For Old Men
The coming age of mobile banking is a country that banks and credit unions need to enter with carefully chosen fintech plans. The old ways won’t do in this new country, but requires innovative digital banking tools that help manage and exceed customer expectations. In this new country the digital banking experience must be on par with the customer’s experience on the other parts of the web and on the latest mobile apps.
Financial institutions have a small window of time to adapt early and jump ahead of user expectations. Providing the most up-to-date fintech solutions is a vital step in staying ahead of the online and mobile shift. There is market share to capture and loyalty to win, and the right fintech solutions can help financial institutions have it all.
And that’s why change is so crucial.