Given the diversity and sophistication of banking channels, people may wonder if there is room for further innovation. Now that technology has done its bit, it is time to generate new ideas around banking distribution, such as geo-specificity.
Canadian banks have set a great example of how to stay within reach of customers, no matter what. Canada’s population is on the move, more than most, with people fleeing the country each winter to warmer climes in the United States, Mexico and elsewhere.
Moreover, its large immigrant community regularly travels to the home countries and back. Thus, Canadian banks have had to go that extra mile to stay connected with their customers. Literally!
Banks in other parts of the world can benefit a great deal by following their customers in a similar fashion. By entering markets that are favoured destinations for migration, they not only retain departing customers, but also gain a foothold in that territory.
Expansion of ATM networks overseas is another idea worth considering – by saving travelling customers inter-connect and currency conversion charges, banks can secure their loyalty for good. Also, channel strategy must be innovated upon and made more inclusive.
Using mobile vans to reach far flung areas, acquiring multi-lingual capability and leveraging non-banking channels to reach the unbanked, are some ways to do so. There must be several others…I’m thinking…I’m listening.
Checklist Item 1: Let customer interest drive innovation
Checklist Item 2: Focus innovatively on each customer
Checklist Item 3: Hold on to your customers!
Checklist Item 4: Get KYC started with segmentation.