The competitive threat posed by companies like Apple, Google and Amazon is potentially as great as that of the traditional players in the banking market, says ASB CEO Barbara Chapman, as banks face the same disruptive forces that have already radically altered traditional business models in industries like media, publishing and retail.
The worry shouldnt be limited to just Google, Amazon and Apple. The worry comes from all innovative technology companies, and not just limited to the payments industry either.
The latest iPhone and number of other handsets show technology is moving forward at a rapid pace, far faster than the payments and banking industries can keep up with. This means there are lots of innovative challenger brands cropping up, and each one has
massive potential to disrupt and cause banks a lot to worry about.
Yes, very true. Don't forget about PayPal too.
It may come as an acute coincidence that Visa have recruited their new CTO from the gaming industry.
Gaming and Social are underpinning user experiences with deep connections to cognitive theory and the things that people are incredibly hungry for.
Decades of de-personalizing customer service has left consumers craving relationships where they are viewed as individuals, have an opportunity to share their individual stories and are treated in a much more transparent, personal way.
As technology continues to place distance between the customer and the front line customer service peole within the bank the job of creating connected customer experiences will get harder and harder, opening up cracks in their loyalty along the way.
Overcoming these challenges will take a reset on the things customers want from their banks. Those that get it right will be able to compete on purpose and experience. Those that dont will compete on price.
One of the reasons that Apple, Amazon, Facebook, Google, and PayPal are threats are that they all deliver high quality customer experiences. Banks need to apply technology that engage the customer, while helping them to know and understand their customers.
Big Data analytics, and other customer analytics, but APPLIED with customer engagement technologies and business practices can help. Example, people don't want mortgages, they want to buy a home. A mortgage is a means to an end. In terms of a customer experience
for buying a home, banks focus on just the mortgage. Others are starting to come along and disrupt this process. Banks that can get it right can be disrupters too.
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© Finextra Research 2016