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Not sure how to interpret that article title, which is in opposition to what our data show. Digital banking and omni channel is growing each year in the US. Any smaller FI can use market benchmarking data to truly fast follow by identifying only the missing
vital technologies that will lead to the desired performance improvement.
David are you saying Digital/Omnichannel will only work for organizations with the size and scale to effectivily implement and innovate?
What is occurring is a divide between the "haves" and "have nots". The pace of technological change is growing at a rapid pace. A pace that the vast majority of North American financial institutions (banks and credit unions) cannot absorb. They simply do
not have the resources or expertise to learn about, consider, plan, purchase, implement and support customer/member facing solutions that their customer/members will expect. The huge marketing budgets of the national and super regional banks will continue
to drive customer/member expectations for US banks and credit unions to match the technology solutions being introduced by the national and super regional banks.
Over the past 5 years the national and super regional banks have demonstrated their ability create a technology gap that the vast majority of banks and credit unions will not be able to make-up.
The national and super regional banks are investing heavily in technology solutions and start-up financial technology (Fintech) companies in order to ensure they maintain and widen their lead on customer facing technology solutions. According to Fortune.com,
Fintech venture investment is set to hit $8 billion by 2018 as big banks look for ways to navigate an ever-evolving digital landscape. The Millennials are evidence the gap is widening.
David, I agree with the gist of your reply above, but that's not at all what your headline said. Your headline said that omnichannel and digital banking worn't work in America", and then what you said in the cmoments below is that it works for national and
super regional banks but not other banks (or credit unions). those are two very different points, and both of them cannot be correct.
Best to consult data in these matters, rather than to speculate or generalize. What the data say is in direct conflict with your title, and somewhat consistent with your comments to your original article above. If you look at just our digital consumer segment
(run on behavioral and attitudinal analytics) it is only the top four banks--and particularly the top two--that have the biggest advantage over the rest of the US retail FIs. there are a few, USAA and Navy included--who can stand up to BAC and Chase--but not
many more at this point in digital banking evolution.
James, fair comment, but when 99.???? percent of the banks and credit unions in the US will not be able to match or closely match the digital technology and technology based solutions roll-out of the national and super regional banks then their market viability
is in serious doubt.
The article did not say consumer adoption would be a problem, but as long as consumers of all but the largest banks continue to expect their bank and credit union can keep digital pace, those institutions are in trouble. They must find a way to change their
business model or paradigm or face irrelevance to most retail financial consumers.
The article is intended to point out an option or new business model that may solve their problem. When the problem impacts over 99% of US FIs it means it does not work for them.
OmniChannel and Digital Banking Evangelist
OmniChannel &amp; Digital Banking
12 Aug 2014