Shifting Focus to the Retail Banking Customers
In their review of the banking industry for 2015, McKinsey & Company suggested that 60% of retail bank profits could be wiped out by fintech...
FinExtra recently posted a story about how banks are using omni-channel, with a focus on the importance of managing customer data effectively. But the real story here is that customer expectations have changed dramatically – they expect service across many different channels, and every mode of delivery has to be equally good.
For banks, there is an additional challenge: financial technologies, or fintechs. Not only are customers expecting more from the service provided, they are now used to consumer technologies that facilitate access to banks 24/7 from anywhere. Now banks need to manage all of these changing expectations just as fintech reshapes the entire industry.
These new, start-up financial service companies have many advantages over traditional banks:
Although times are challenging, smart use of data can help traditional banks fight back. They have decades of customer history and behaviour to draw on. If they use this knowledge in a smart way then they have one big advantage over the nimble fintechs – their own history.
What do you think about the way that data and analytics could transform the customer experience in retail banking? Leave a comment below or get in touch with me on LinkedIn.