The next 20 years will see the world go from 20,000 “analog” banks to no more than several dozen “digital” institutions.
-Francisco González, BBVA Chairman
Become customer-centric (for real)
Banking in the digital age requires a drastic, profound reset of how banks react to changing customer needs and expectations – not just in words, but in deeds! Instead of working “inside out”, banks must adopt an “outside in” approach where existing business models are rethought & acted upon. The starting point should entail moving to where customer is, not trying in vain to drag them to the branch.
In their joint research, A.T. Kearney Analysis and Efma identified that bank executives define customer centricity based on 3 indicators:
Proximity & anticipation of customer expectations: This requires a change in mindset and practices, resulting in customers’ becoming the center of the bank. Some key practices include monitoring social networks, engaging with clients there, and using those channels to develop concept spaces—new offers and services, CEO discussions, or closer client interactions—where banks can get a more realistic sense of actual customer behavior.
IT responsiveness: An enhanced customer experience will go a long way, so a bank’s technology must be leading-edge and responsive. In digital, the bank’s IT is naked in front of the customer. The ability to capture the full potential of new technologies starts with an agile IT organization and cross-functional teams that can soak up customer desires like a sponge, and craft the corresponding products & services.
Rethought branches: What does the physical branch of the digital future look like? In the ideal scenario, banks have flagship shops that beautifully and intelligently showcase their customer-focused retail brand and strive to offer face-to-face advisory services in a warm, welcoming way.
Make flexibility part of your DNA