Big-tech organizations are capturing more and more of the banking value chain, providing services such as payments, checking and even savings accounts that could erode much of the traditional bank revenues in the future. These new entrants pose a threat to banks by raising service expectations and coming between banks and their customers. So, who want to embrace the future of banking? The response goes far beyond making current services “more digital.” Instead, banks need to provide permanent assistance. Today customers don’t want to go to branches, they want the ability to transact fingertip-ready.
Instead of selling, the bank of the future will interact like Amazon and Google, gaining insight and getting smarter with each interaction. Opportunities will be presented in real-time, based on what is happening in on mobile devices. By tapping into the wealth of transactional data consolidated on the consumer’s behalf, the bank of the future will reach out to the right third-party providers to build a digital customer experience combining mobile, big data, analytics, digital marketing, ticketing and more.
In addition, the bank of the future will be able to do this while reducing back-office costs, improving speed of solution delivery, increasing revenues and building fewer of these solutions in-house. They will leverage APIs and the cloud to deliver a portfolio of solutions personalized to the consumer’s situation. This will include multiple options for the consumer to choose from, some of which may be provided by organizations that were once competitors.
Consumers enjoy an improved experience that saves them time and money, with a much more personalized relationship. They expand their relationship because no other bank possesses the right insights. Service providers also benefit from the bank’s customer insights through improved offer targeting and increased sales volumes. By acting as a digital value aggregator, the bank is rewarded with deeper relationships, increased loyalty and improved profitability due to a higher volume of lower-cost transactions and additional service fees.
Banks need to develop the digital partnerships to deliver new services and enhanced engagement for the consumer. By collaborating with partners as opposed to competing, the bank can be re-positioned at the center of the customer’s daily life, becoming integral to both financial and non-financial needs. The bank of the future could have relationships with more segments of consumers at an efficient cost.
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