Financial Institutions Unprepared For Digital Future
The Financial Brand’s @Jim Marous on the transformation banks and credits unions need to undergo or risk extinction.
“It’s impossible to build a strong solution on a weak foundation. Unfortunately, this is the case at most financial institutions that are trying to deliver a ‘bank of the future’ solution with a core processing system that is decades old. Bottom line, to deliver a differentiated, seamless experience to customers, most banks will need to make substantial improvements to their IT infrastructure to eliminate data silos, duplicative and/or incomplete customer data files and incompatible systems.”
“The best approach to channel optimization is to be very strategic in breaking down technology and organizational silos, and to evaluate painstakingly customer wants and desires. Make peace with the fact that these wants and desires will change over time as demographics shift and new technologies are introduced. But no matter what the delivery channel looks like, integrating the different channels to create a consistently great customer experience will cause revenues to surge.”
“Many of the comments made by the dozens of participants in the discussion revolved around simplicity of design, the removal of friction and the ability to improve the customer experience. Yann Ranchere, Director at Anthemis and Finance 2.0 blogger, put his perspective as succinctly as anyone by saying, ‘It’s making banking more human.’ Brett King, CEO of Moven, author, speaker and radio host also provided a quick insight when he added, ‘Banks don’t need a head of digital, that’s the CEO. Therefore, digital in banking should just be best practice banking.’”
“...51 percent of smartphone owners have used mobile banking in the past 12 months (up from 48 percent a year earlier), showing that mobile banking adoption continues to grow, and that that a majority of smartphone owners now use mobile banking. The report also notes that 12 percent of those mobile phone users who are not currently using mobile banking think that they will probably use it within the next 12 months.”
“Bain Capital Ventures’ Matt Harris told Bank Innovation, ‘What’s been surprising and dramatic is the entrance of corporate players. There’s now over $1 billion in strategic venture capital, which is a tenth of what it was. There’s also somebody at almost any firm that’s the FinTech guy.’”
9 Reasons to Scrap Your Marketing Plan for Millennials
The Financial Brand’s Kevin Tynan explains how the marketing plans used on Gen X’ers and baby boomers just won’t work on millennials.
“Current banking practices may be unrecognizable ten years from now. New entrants, mobile payments, and cloud services will disrupt the financial services industry. Banks must learn to respond quickly and nimbly to innovation. It won’t be easy. Consulting firm Accenture thinks full-service banks could lose 35% of their marketshare by 2020 and millennials will be leading the revolution. Meet their needs and you’ll be well positioned to survive.”