Today, customers are more empowered and informed than ever before. Personalized and innovative solutions are enhancing their ability to do what they want, increasing mobility, as well as ushering in newer models and competitors.
In order to cope, banks must re-imagine their customer relationship strategies, and embrace digitization. Specifically, this is exactly what they should do:
- Initiate a culture change to adopt innovation and meet dynamic customer expectations
- Revamp their brands to build an emotional connection with the customer—boosting customer advocacy
- Re-imagine the customer experience so that it reflects and supports the new brand positioning
- Build digital at scale
Most pre-digital banks have to grapple with legacy technology and the pace at which they deploy new solutions is also a cause of concern. The majority would agree that, in the future, new technology deployment cycles will be more accelerated. However, the current time taken by banks for technology implementation is either negatively impacting its value, or providing no net benefit at all.
Fintech startups are born digital, so there is no baggage of legacy technology. They leverage the best-in-class infrastructure and technology to create their product offering. The challenges faced by them include customer acquisition, and the restraints of legislation and banking regulation.
Brett King, CEO and co-founder of Moven, said, “Startups have zero process or organizational inertia to circumvent. Alternatively, most legacy banks have an overabundance of both.”
Legacy banks are focusing on fintech/startups for new ideas and innovations. They are keen to capitalize fully on their biggest advantages—data and access to the customer—while working towards rebuilding trust. Similarly, most fintechs are bank-focused as they are keen to leverage the customer trust which the latter has worked hard for decades to earn. The future of fintech and banking depends upon collaboration with traditional banks as both have equal opportunity to leverage each other’s strengths and create significant value for their clients. It is fintech and banks, and not fintech against banks.