Turbulence in banking markets just won’t let up. New competitors ranging from established technology giants, such as Alibaba and Amazon, to smaller specialists, such as Mint and Betterment, have steadily encroached on traditional banking activities. Customers are willing to try these alternatives because they trust the companies and have grown accustomed to easy, convenient and personalized digital interactions in other parts of their lives. And technology firms generally set the standard for a great customer experience.
If those incursions weren’t challenging enough, new regulations, including Open Banking in the UK and PSD2 and GDPR in Europe, give customers greater control over their data and greater choice of financial services providers.
Most banks’ current business models are not well equipped to deal with the disruptions, as digital-native competitors take attractive slices of the profit pool, such as originating loans or facilitating payments. The traditional model of providing a full suite of standard products and services through legacy organizations and proprietary channels—branches, call centers, websites—does not have enough flexibility and speed to adapt to the coming shift in profit pools.
Want to know more about digital marketing training or code training for you or your organisation?
