Creating a Bank of the Future

The financial services industry has been impacted by the increased use of technology in our everyday lives, from smartphones to even wearables. Many banks today are facing a serious challenge– banks must create a new, digital organization that has great human experience to meet the needs of the increasingly, demanding tech-savvy customers.

 The bank of the future will shift its focus from traditional products and services onto creating a customer experience that uses next-generation technology.

 Creating a digital organization is necessary to address the changing demands and needs of customers. This drastic shift will provide customers with a genius and more transparent and seamless digitally connected experience. With this drastic shift requires a proactive business plan that will be able to quickly adapt to the rapid changes of customer needs, and an effective change management plan.

 New banking strategies

 First, organizations must rethink their business strategies. This will involve getting marketing and business leaders together to define the organization’s new strategic goals. They can find inspiration by looking at innovative leaders outside of the industry. They can also consider emerging technologies and competitors.

 Each bank strategy will need to be evaluated on how realistic it can be achieved. Some banks might just need to digitize their current business while others might need to create a whole new business segment. Some banks may even consider creating an entirely new bank.  There is no right and wrong goal, the chief marketing officers (CMOs) just needs to make sure that the organization’s strategic goal is aligned with initiatives accordingly.

 The new business strategy must be able to link to customers’ wants while also supporting customers’ expectations. The population that many banks will try to reach is the Millennials. According to Deloitte’s “Creating the bank of the future”, Millennials account for 80 million of the population and spend $600 billion annually and by 2020, will spend $1.4 trillion. Millennials are looking for a fast and easy to use digital service like Amazon or Uber. They are not looking for just a bank; they are looking for a simplified experience that makes their lives easier.

 Marketing leaders must focus on design thinking of the customer experience, but tactics such as focus groups and surveys can only go so far. Banking leaders that have a desire to significantly change their organization must go beyond and step into the customer’s shoes. This can involve in-home observations to get an understanding of where money flows within the lives of consumers

 Once banks have an understanding of their new business strategy and the experience they want to provide to their customers, banks will want to shift their focus on the development of the technology platform. Here are some key designing principles to follow for the technology platform.

 Automated and digitized processes

Having an automatic process can reduce the turnaround and delivery time and improve customer service delivery and consistency across all channels.

 A highly secured system

Banks remain the biggest target for cyber attacks. Organizations can limit their chance of being hacked by segregating sensitive data and using the highest level of encryption technology.

 Customer centered data

Customer data should be personalized, consistent, and in real-time.

According to a Deloitte debrief poll, respondents cited that the main focus of the bank’s journey to being a digital bank should be the integrated platform, followed by an exceptional user experience.

 Starting early with change management plans

The problem with change management plans is that they often happen when a new business strategy rolls out. Banks should consider aligning everyone on board, including the CMO, stakeholders and individuals earlier in the effort. Banks can look at how other industries have effectively managed a wide range of demographic groups for examples.

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 The future of banking will depend largely on the increasingly, demanding tech-savvy customers. Banks must be able to adapt to these emerging changes, providing simplified, automated, and highly secure digitized experience. Consumers want a service that makes their lives easier. Banks must constantly be proactive about customer’s wants and follow emerging technologies and innovations.

 

Author: Jessica Huynh 
 

Sources:

 “Creating the Bank of the Future.” Creating the Bank of the Future – CMO Today. -WSJ. The Wall Street Journal, 18 Jan. 2017. Web. 5 Feb. 2017.

“Banking Needs a Customer Experience Wake-Up Call.” The Financial Brand.   N.p., 06 Feb. 2017. Web. 06 Feb. 2017.

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