Digital Transformation Blueprint Brochure
DIGITAL TRANSFORMATION BLUEPRINT
A narrative for a new banking era
New customers for old banks
According to an interesting and widely known index published by Viacom Media Networks, 71% of Millennials would prefer to go to the dentist than to listen to what banks are saying. According to this survey 73% would be more excited about a new offering in financial services from Google, Amazon, Apple, Paypal or Square than from their own nationwide bank.
This serves to confirm the seismic change in the profile of consumers today and in the future of financial services. Digital natives, like those who have embraced technology regardless of their age, present a series of characteristics when accessing bank services which banks should pay good heed to in order to build solid and lasting relationships.
In the surveys that UST Global conducts on the profile of today’s consumers, there are six key recurring factors that determine engagement and loyalty.
New challengers competing for customer emotional dilemmas
Fintech companies have definitely grasped this situation. Leveraging this phenomenon, combined with the omnipresence of mobile phones (the new PA in our lives) and the impact of the global economic crisis, they have forced the industry to find alternative access mechanisms to financing for businesses and individuals.
So it’s time for Transformation…but not only DIGITAL
Those financial institutions that have understood the message have embarked on a transformation process with varying levels of intensity: ranging from those who are questioning nearly all the traditional parameters (operating model, core technologies, customer experience) to those who are adopting a more superficial focus, mainly attacking the digital channels as a way of getting closer to customers.
The big question, however, is if all this transformation, based on improving the value chain of a financial institution is enough at this present time. Given the current circumstances (far-reaching technological change, macroeconomic tensions, demographic changes and even regulatory tensions), relying solely on cost savings, efficiency gains, listening to customers, etc., isn’t usually synonymous with evolution.
We believe it isn’t about playing the game the best but about creating a new market model attacking the pillars of the traditional system. The time has come for strategic orchestration, for creating networks in which the different nodes are innovative companies, “coopetitors”; partners from other markets and associations, among others, collaborating in a transparent model for users in order to fulfil the mission we proposed previously.
Those financial enterprises that can create new platforms delivering products and services that go much further than conventional offerings will manage to find a space in the minds (and hearts, because this is about emotions too) of potential customers.