Digital Trends in the Financial Services Industry
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The document discusses the digital disruption in the financial services industry, emphasizing the gap between consumer expectations and experiences, driven by a lack of innovation and customer-centric strategies. It outlines the necessity for banks to reposition themselves as life enablers, focus on personalized services, and leverage data while addressing cyber-security concerns. The text highlights trends such as cashless payments, mobile banking, and the importance of owning customer relationships through improved data analytics and social media engagement.
![“The railroads did not stop growing
because the need for passenger and freight
transportation declined [or] because that
need was filled by others (cars, trucks,
airplanes) but because it was not filled by
the railroads themselves. They let others
take customers away from them because
they assumed themselves to be in
the railroad business rather than in
the transportation business...they
were product oriented, instead of
customer oriented.”
Theodore Levitt, Marketing Myopia,
Harvard Business Review, 1960
Lessons from the Past](https://image.slidesharecdn.com/digitaltrendsinthefinancialservicesindustry-151108230343-lva1-app6891/85/Digital-Trends-in-the-Financial-Services-Industry-4-320.jpg)
Digital Trends in the Financial Services Industry
- 1. Digital Trends in the Financial Services Industry By: KerryLynn Daly
- 2. Consumer: What they Want vs. What they Receive Ubiquitous Service Personalised Experience Social & Informed Banking What consumers wants Gap Whatthey get Restricted Service Information from Untrusted Source Group Segmentation
- 3. Gap Leads to Digital Disruption • Disruption – no longer a likelihood but a certainty • Current State: Awareness without willingness • Why disruption?: • Minimal understanding of consumer behaviours • Unmet customer needs • Lack of innovation • A narrow vision of the industry
- 4. “The railroads did not stop growing because the need for passenger and freight transportation declined [or] because that need was filled by others (cars, trucks, airplanes) but because it was not filled by the railroads themselves. They let others take customers away from them because they assumed themselves to be in the railroad business rather than in the transportation business...they were product oriented, instead of customer oriented.” Theodore Levitt, Marketing Myopia, Harvard Business Review, 1960 Lessons from the Past
- 5. A New Position Banks need to look at themselves not as financial service providers but rather as life enablers
- 6. Trends Forcing Repositioning Mobile & Online Banking Be Customer Oriented, not Product Oriented Cyber- Security Concerns Cashless Payments Digital Data Analysis Social (Media) Banking Digital Money Management
- 7. Digital Optimisation Extension of Reach and Consumer Relationship Data Capture and Analysis Ubiquitous Service Personalised Experience Social & Informed Banking Top Customer Trends & Relevant Opportunities
- 8. Digital Optimisation of Services What is the trend? • Anytime, anywhere access with a personal touch • Demand for integrated branch experience • Move towards cashless society • Digitisation of normal in brand activities What does it look like in practice? • Digital Cheque Deposit • Money management capabilities • Video conferencing • Wearables Who is getting it right? What is the major risk? • Threat of cyber- security
- 9. Data Capture & Analysis What is the trend? • Customer Centric Model “very important” • Use data to infer customer behaviour • Target offerings for the ‘segment of one’ • Enable customer choice and agile product portfolios What does it look like in practice? • Target offerings • Identification of dissatisfied customers • Personalised customer experience Who is getting it right? What is the major risk? • Infringement on privacy laws
- 10. Extension of Reach & Relationship What is the trend? • Harness traditional & non-traditional data sources • Use of social to tailor customer experience, spot trends and identify emerging issues • Own the relationship with the customer and maintain trust What does it look like in practice? • Social listening and advocacy • MOOCs to inform financial decisions • Develop added lifestyle services Who is getting it right? What is the major risk? • Brand reputation risks via social
- 11. Assess portfolio for Digitisation Schedule; Develop API Brand Campaigns; Lifestyle Services; Further Segmentation Audit Existing Data; Segment Customers; Build Infrastructure for Future Collection Customer Retention; Cost Savings; Data Collection Brand Loyalty; Ownership of Customer Relationship; Insights Upsell Products; Retain Customers Data Analysis Relationship Reach Digitial Optimisation Opportunities What is the opportunity & how urgent is it? How can you fulfill it? What do you gain by fulfilling it?
- 12. Appendix
- 13. Sources Ard, Hayley. “Bite-Size Banking,” Stylus. 21 July 2014. Berdak, Oliwia and Bill Doyle. “Digital Disruption Hits Retail Financial Services” Forrester. 16 July 2014. British Telecommunications. “Transforming the Business of Retail Banking,” www.bt.com/gbfm. 2013. Capgemini and Efma. “World Retail Banking Report 2015,” www.uk.capgemini.com/thought-leadership. 2015. Competitive and markets Authority. “Retail Banking market Investigation,” www.gov.uk/cma-cases. 29 June 2015. Corkey, Michael and Nathalie Popper. “Goldman Sachs Plans to Offer Consumer Loans Online, Adopting Start-Ups’ Tactics,” The New York Times. 15 Jun e 2015. Deloitte. “2015 Banking Outlook,” http://www2.deloitte.com/financial-services.html. 2015. Farah, Philip. “Future of Retail Banking.” Cisco. 2012. Gordon, Fergus and Suresh Gunupure. Banking Strategies for the Future: Looking Ahead to 2020,” ATKearney. 2015. Haldane, Marshall. “Card Security: Leading from the Front in the Digital Age,” Global Banking & Finance Review. 27 March 2015. Holper, Luc. “The Next Generation of Payments: Can Technology support Banks’ needs to stay on top?” Global Banking & Finance Review. 28 March 2015.
- 14. Sources Continued Hoppermann, Jost. “Banking of the Future: How Banks will use Digital Capabilities to Remain Competitive,” Forrester. 23 February 2015. Horani, Mohamed. “Digitization in the Payment World,” Global Banking & Finance Review. 19 June 2015. Kemp, Simon. “Digital, Social and Mobile in 2015: Executive Summary,” We are Social. 2015. Levitt, , Theodore. “ Marketing Myopia,” Harvard Business Review,. 1960. Mason, Jim. “Digital Disruption and the Battle to own the Customer Relationship,” Global Banking & Finance Review. 2 June 2015. PWC. “Retail Banking 2020: Evolution or Revolution.” www.pwc.com/banking. 2014. Skan, Juliand, James Dickerson and Samad Masood. “The Future of Fintech and Banking: Digitally Disrupted or Reimagined?” Accenture. . 2015. Theodossiou, Spiros. “How far is the UK from Becoming a truly Cashless Society?” Global Banking & Finance Review. 28 May 2015. Wannemacher, Peter. “Predictions 2015: Digital Banking Teams Finally Get Serious about Innovation.” Forrester. 6 November 2014.