The future of banking is not just the financial services it offers, but so much more! This new way of banking will become central to the customers financial and non-financial digital ecosystem. Read the article below to get more information on how the future of banking will change the products and services we use everyday.
Fintech firms and bigtech 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 foreseeable future. These new entrants pose a threat to banks by raising service expectations and coming between banks and their customers.
The response goes far beyond closing branches, improving online and mobile banking offerings or making current products and services “more digital.” Instead, banks need to move further into the daily lives of customers, providing assistance before, during and after the financial transaction.
Customer behaviors and expectations are quickly adjusting to a world where products and services are recommended based on past behaviors and where location-based offers are provided instantaneously on their mobile device. Customers don’t want to go to branches or do banking. They want financial information and the ability to transact fingertip-ready.
The Banking Organization of the Future
The banking organization of the future will leverage the vast amount of insight it possesses to become central to a customer’s financial and non-financial digital ecosystem. It will combine internal capabilities with external innovations to be a value aggregator, advice provider and access facilitator. Instead of a rear-view mirror perspective, it will provide a consumer with a GPS view of their financial lives in the future. Instead of overdraft notifications, there will be low balance warnings and recommendations.
Instead of ‘selling’, the banking organization of the future will interact similar to Amazon and Google, gaining insight and getting smarter with each interaction. Offers and opportunities will be presented in real-time, based on what is happening in the moment on mobile devices that are always on. Banking, as we know it today, will be both invisible and seamless, providing insight-based support for commerce, communication and making life easier overall.
By tapping into the wealth of transactional data consolidated on the consumer’s behalf, without sharing insights beyond permissions, the banking organization of the future will reach out to the right third-party providers and other key players to build a digital customer experience combining mobile, big data, analytics, digital marketing, ticketing and more.
As opposed to offering solutions to the consumer at a higher cost, they will be able to leverage the power of negotiation to lower the costs and simplify the access to products and services on behalf of the consumer. In addition, the banking organization 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.
The banking organization of the future will leverage APIs and the cloud to deliver a portfolio of solutions that are customized and personalized to the consumer’s individual situation in any given moment. This will include multiple options for the consumer to choose from, some of which may be provided by organizations that were once competitors. These solutions will also extend beyond just digital solutions, to include human interaction when appropriate for the customer.