Banks and the Art of the Possible: Disruptors are Re-shaping Banking

Banks and the Art of the Possible
Banks and the Art of the Possible: Disruptors are Re-shaping Banking

The problem many banks encounter today is that they have vast sums of investment tied up in old ways of doing things. Historically, customers chose a bank and remained ’loyal’ throughout their lifetime…now competition is rife and loyalty is becoming a thing of a past. In order to stay ahead of the competition, gain and keep customers, they need to understand the ever-evolving market, disrupt norms and continue to delight customers. The tradition of staying with one bank due to family convention or from ease has now been replaced with a more informed customer who understands the variety of choice at their fingertips.

Challenger Banks don’t build on ideas of tradition and legacy and see how they can make adjustments to them. They embrace change. Longer-established banks can’t afford to do nothing, and assume their size and stature will attract customers.

Here’s some useful information

Accenture’s recent report, The Bank of Things, succinctly explains what ‘Customer 3.0’ is all about. The connected customer isn’t necessarily younger. It’s everybody. Banks can get to know their customers better by making better use of information. It all depends on using intelligent data rather than all data. Interrogating the wrong data can be time-consuming, costly and results in little actionable information.

When an organisation sets out with the intention of knowing its customers, then it can calibrate its data according with where the gold nuggets – the real business insights – come from. What do people do most? Where do they go most? Now that they’re using branches and phone banking less and less – what do they look for in a mobile app?

Customer 3.0 wants to know what the bank can offer them all-the-time, on the move, on their own device. They want offers designed for their lifestyle. Correctly deciphered data can drive the level of customer segmentation that empowers such marketing initiatives. This means an organisation has to have the ability and the agility to move with its customers. It’s a journey that never ends -technology will never have a cut-off point just like customer expectations will never stop evolving.

It’s time for banks to re-shape banking

Informatica have been working with major retail banks globally to redefine banking excellence and realign operations to deliver it. We always start by asking our customers the revealing question “Have you looked at the art of the possible to future-proof your business over the next five to ten years and beyond?” This is where the discussion begins to explore really interesting notions about unlocking potential. No bank can afford to ignore them.

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