The UK wealthy are resisting engaging with their banks via new technologies in a bid to return to old school banking values, according to a YouGov survey of 1000 high net worth individuals.
Technology can, and should, be part of the solution for personal care of customers. The two are not mutually exclusive.
This segment hardly cares about technology at the delivery point. Considering how they are pampered by wealth advisors, that is the only channel of interest to them. Having said that insight led advices can only be enabled by technology and hence one should
never rule out the role of technology.
Banks use customer-facing technology to (A) Equip bankers with devices and applications to enrich customer-facing tasks (B) Urge customers to use technology to perform many banking tasks in self-service mode. Up until and including Web 1.0, use case A was
more prominent, so technology and personal care were not mutually exclusive. With the advent of Web 2.0, RIA and mobile apps from the vendors' side and cost pressures from banks' side, there is a rise in use case B where technology and personal care are undoubtedly
becoming mutually exclusive. The angst among HNIs - not to mention other customers - to wider use of technology shouldn't therefore come as a surprise. HNIs might prefer to use their time and effort to become UNWIs rather than jump the several hoops required
to carry out many self-service banking tasks e.g. make / receive an ePayment. In an op-ed article I'd written a couple of months ago for the American Journal of Internet Banking And Commerce - I'll provide the hyperlink if Finextra permits - I'd predicted
that, unless banks reduce friction in technology, they "face the risk of their customers going back to branches, checks and cash". Looks like HNIs have already expressed their intent to do so. It won't be too long before others do.
CompetitiveNew York City, NY (USA)
© Finextra Research 2015