Bigger Challenges & New Priorities Face Banking Industry
The Financial Brand’s @Jim Marous on the current period of unprecedented structural change facing the financial services industry.
“For the second consecutive year, the survey found that the industry’s biggest challenge was satisfying the demands of better-informed and less-loyal customers. This challenge is felt most acutely by retail bankers, with 34% citing waning customer loyalty as their biggest challenge.”
The Mobile and Online Banking Report: Mobile Is Pulling Customers Away From Branches and Online Banking
Business Insider’s @John Heggestuen on the tumultuous relationship between consumers and their banks.
“Worldwide, mobile banking is now more popular with bank customers than visiting brick-and-mortar branches. Fifty-seven percent of customers do their banking online on a weekly basis, while nearly one-fourth use mobile banking weekly (up 9 percentage points from 2013). Only 14% visit a bank branch every week. Mobile is completely changing the customer-bank relationship.”
“Look, if you ask me what the definition of banking will be in five to ten years my response will be, ‘pretty much what it is today.’ What I mean by that is, the core services that banking provides aren’t going to change. Money will be deposited, loans will be made, credit will be established, etc. What will change is how we go about these activities. Banking as a verb, as an engagement model, will continue to shift dramatically. New players will continue to encroach on the business model. The point of Moneyball isn’t that the game of baseball changed, it is that the way one strategically approaches and manages the game requires change.”
A Separate PayPal Still Must Solve the Payments Puzzle
The New York Times’s @Peter Eavis on the obstacles facing PayPal post emancipation.
“PayPal’s success might, therefore, also depend on producing a technology that is markedly easier for consumers to use than a credit or debit card. Right now, paying for something with a phone is often no quicker than paying with a card. PayPal would need to improve on that, but its recent record in setting up easy payments in stores is not strong. And Apple Pay, with its iPhone fingerprint authorization, may catch on quickly, making it harder for PayPal to compete.”
Wal-Mart’s Getting Into Banking, And It Makes A Lot Of Sense
FiveThirtyEight’s @Andrew Flowers and @Rueben Fischer-Baum on the logic behind Wal-Mart's move to offer checking accounts.
“At its core, offering better mobile banking is all about delivering better customer service for millennials. In fact, a recent TD Bank survey found that millennials:
- Leave institutions that don’t meet their mobile banking needs
- Reject solutions that are fragmented and inconsistent across different devices
- Accept personalized offers for banking services that appeal to them
- Use customizable budgeting tools
In other words, millennials have extremely high mobile banking expectations, and they’re willing to go wherever those expectations can be met.”