To gain competitive edge, banks must seize the opportunity to become more involved in customers’ commercial and financial lives, analyzing their transactional data to provide them with expert advice, find ways for them to save money and proactively recommend products and services they actually need.
The most successful companies will be those that are able to marry this analysis with analysis of customers’ locational and contextual information to be able to deliver the right products, personalized to individual customers’ circumstances, at the right time and over the right channel – what we are calling experience-driven banking.
Delivering experience-driven banking is a race against time. Banks have access to customers’ transactional data. But big technology companies such as Google and Apple have a deeper reach into customers’ lives. And, through initiatives like Apple Pay and Google Wallet, they are fast building data on customers’ financial transactions.
So, banks need to act fast – to put in place the conditions to be able to deliver experience-driven banking, ranging from cultural change to technology renewal.
It is a race banks must win. Banks won’t disappear, but if they aren’t able to deliver the value-added services that customers want, then others will – with profound consequences for the role and profitability of the industry.