Digital is impacting every aspect of the banking industry: how consumers research alternatives and access services, how products are delivered and purchased, and how the financial market operates. The new generation of digitally native consumers don’t just expect their bank to be fiscally and socially responsible, they also expect it to provide a frictionless and seamless financial service experience, which is tailored to their unique needs. Traditional megabanks now confront new competition from all directions including digital powerhouses like Google, challenger banks like Atom Bank and fintech startups like TransferWise. As bank customers turn into bank users, they increasingly face the risk of becoming dependent on other players who will own the customer experience. To defend their position against these new players and prevent customer churn, incumbents are pressured to innovate, collaborate and increase their focus on delivering digital services that are built around the needs of their customers to provide an enhanced user experience.
As bank customers turn into bank users, they increasingly face the risk of becoming dependent on other players who will own the customer experience.
Understanding the customer journey
The buying behaviour for financial services is changing and it’s no longer enough for banks to wait around for customers to take action if they want to build and maintain new relationships. Banks must make it as simple and intuitive as possible for new customers to learn about their offerings, purchase their products and manage their services. Customers make choices based on the quality of their experiences along their entire buying journey why banks must engage customers at every stage of this journey, providing a differentiated and superior customer experience. This requires mapping the complete customer journey across every touchpoint; understanding where consumers begin, how they use different channels and where they stop on the way. At a basic level it can involve mapping out the process of opening a new account, thinking about how many steps new customers need to take and how much time the process consumes.
Meeting the future needs of digital-first and mobile-only customers, require banks to rethink what a bank is.
Reimagining the mobile user experience
Looking ahead, the ability to deliver an exceptional mobile user experience will become even more crucial, and the design of this experience must be about more than mobile first. On top of advances in account opening, mobile payments and contextual offers, mobile use cases will extend beyond banking features. Meeting the future needs of digital-first and mobile-only customers, require banks to rethink what a bank is. Their goal should be to deliver a differentiated, unified customer experience that enchants users through great design and novel products that bring about new and authentic relationships. To accomplish this, they need to move towards an integrated digital banking platform and ecosystem, which is embedded in the company culture.
The uberization of banking is just around the corner.