Banking is undergoing enormous change, and whilst the bricks and mortar are the same — the banking sector is a money-making business after all — nothing about the design, or the look and feel have any resemblance to the banks that have been and gone.
Approximately 97% of SMEs are micro enterprises, meaning they have fewer than 10 employees, or are sole proprietors, and/or have an overall revenue of below €2m. Whilst they fall under the SME umbrella, their needs are anything but similar and banks are best advised to provide the service their unique set of circumstances require.
What is it about that email addressing us personally, or the forgivably misspelled name on the side of a cup at a coffee house that makes all the difference to us? It seems that we, the average consumer, are on a constant search for the personal touch, the antidote for the anonymous and a fulfilling way of reconnecting with others.
Easier perhaps for the coffee house than an international corporation?
How can we expect a global bank of colossal proportions – the usual suspects such as BBVA, Santander, Deutsche Bank or Citi - to offer personalized banking services and have a one-to-one conversation at customer level? Given that the branch is increasingly a thing of the past, surely it’s becoming more difficult, as opposed to easier, to give the end-user what they want?
Mobile is without doubt the present of banking and a pillar of the consumer’s pursuit for relevant, on-hand amenities. While digital doesn’t just mean good things for the customer; financial institutions are interested in the online model as it is significantly less expensive, more accessible, and can produce more customer intelligence than traditional banking.
But what is the challenge in digital banking transformation? With this shift into mobile, the bank will need to rethink traditional business models, define new revenue sources and above all, keep the customer interacting and engaging in a new way.
That’s exactly when relationship banking comes in.