18 October 2017
Banking and FinTech UX Design
Albert Pumpur

Banking and FinTech UX Design

Albert Pumpur - UX Design Agency

2Posts 11,527Views 0Comments
Innovation in Financial Services

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.

Banking Future is in Digital Channels and UX Strategy, Not in Marketing

17 January 2017  |  6548 views  |  1

2016 has just ended and 2017 has started. For most of the companies that means new strategic plans for possibility to grow in future. Banking industry is no exception. New year, new me or even better me applies for them too. Inside board meeting rooms C-level executives set new KPI's and plan improvement on existing ones. Mid-level executives have to obey these plans.  Executives must be happy to get that yearly bonus.

I believe, that any banking and corporate working person can relate with me here. Business wants to see results and most visible result is increase in revenue or new clients. Standard things that gets carried out by marketing or product team. They have to come up with award winning ads or create new “killer service”. This is easy path with short term solution. Then next year comes and everything starts over again.

Not everything is that grim. There are people that are willing to update existing  services and create new ones. Create new service applications. Improve existing online banking. Create new products and present them digitally. How do I know? In the end of 2016 and now I am being invited to talk with banks about this. New year, new resolutions, new plans.

Digital teams got their budget for what they asked and now they have to make that work. In best case scenario someone from board supports this and wishes, that this will succeed. Many cases this is just initiative of tech-savy, digitally oriented newcomer. Probably in late twenties, hired 1-2 years ago. What you can see from here - bank is focusing on loan and product services and not caring much about digital channels. Group of people are trying, but lacks support, because all focus is on old school marketing tricks.

As a digital channel and UX enthusiast I often get invitation to meet a bank representatives to talk about its digital future. And sometimes to see small group of mid level executives instead of  real decision makers, makes me sad. That is the moment when you know, that bank doesn’t care about digital growth.

To all banks - it's 2017, future is here. Now and today your customers are online 24/7. If you are not - you are already losing customers and potential clients. Being online and digitally ready will give access to your customer anywhere, anytime. Believe me, this what any smartphone owning person wants.

It is time to stop relying on old school marketing techniques. What worked back in the days will not guarantee right strategy in the future. New product categories, better loan offers and cute ads with happy people in them will not do good in long term. Lets model the scenario. I take loan at your bank, because I saw amazing billboard ad. Now I want to repay this loan and I try to log into my online banking or application - as people do today, and my experience is awful. How will I feel? Terrible. I have to repay loan in a way I hate for many years from now on. I will hate this bank and all its services. I would think twice before starting to use other product.

Banks need to have digital strategy and commit to it. Just because you already have digital channel or one is under development, you need to think about how to use it. In simple terms, if you are good looking men or women it is hard to get to you unless you do something about it. Put yourself out there. Also, trying might not succeed, you need to have strategy and execution. Why and to whom you are doing this and how to reach maximum out of this.

Following this, giving full support from all bank’s executives and departments, it is possible to get traction this year and big results next year. Growth and KPI execution is not a sprint from year to year it is slow, but focused and future oriented strategy. And the future is digital my friends!

 

 

TagsMobile & onlineInnovation

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 17 January, 2017, 19:53

Why are Digital Channel / UX Strategy and Marketing mutually exclusive? Big Banks do digital about 80% as well as Neobanks. But Neobanks don't do Products even 50% as well as Big Banks. For example, I'm tired of waiting for my bank to issue a Credit Card but I can't find a single Neobank that offers a Credit Card. You may hate your bank but you may not have a choice. As Chris Skinner says in his blog post , The Catch-22 of banking, "despite the launch of half a dozen new banks in the last few years, the largest lenders still have 77% of the market. They had 69% market share in 1999."

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Latest posts from Albert

Welcome to Wonderland of Financial Experience Design

09 February 2017  |  4980 views  |  0 comments | recomends Recommends 0 TagsMobile & onlineInnovationGroupInnovation in Financial Services

Albert's profile

job title Financial CX/UX Expert
location Riga
member since 2017
Summary profile See full profile »
My name is Albert Pumpur, and I am a banking and Fintech user experience and usability consultant for UX Design Agency - UXDA. I have always been inspired by understanding complicated things and makin...

Albert's expertise

Member since 2017
0 posts0 comments
Albert writes about
Mobile & onlineInnovation
Albert's blog archive
February 2017 (1)January 2017 (1)

Who's commenting on Albert's posts

Ketharaman Swaminathan