The Need For A Digital Perspective
The need for customer centric design around digitization is growing. Banks successfully implementing a journey based perspective see revenues increase by 25%, yet it’s still the tech companies who are leading the way. Banks are either buying or partnering with tech companies to try to make headway into a consumer segment they are struggling to attract.
It is hard to find an area of our day-to-day lives that digitization hasn’t impacted. We can now book holidays, purchase the travel insurance and hire a car through an app in a matter of minutes. Yet most banks still make purchasing their products a long winded process.
A recent white paper by Boston Consulting Group, “How Digitized Customer Journeys Can Help Banks Win Hearts, Minds, and Profits”, identifies several key areas that incumbent banks should concentrate on to meet the demands of modern consumers.
· Customer centric design
· Apply digitization and automation with advanced analytics
· Redesign processes from end-to-end
The main problem facing traditional high street banks is there are already new companies in the market place for which these traits do not need to be adopted, as they are part of the companies’ ethos. In fact, Lunar Way has always applied these traits to help us transform the users mobile banking experience.
Can Banks Catch Up?
We don’t think so. Changing the whole attitude of an organization takes more than a little time, and it appears many of the banks agree. A lot of the larger banks are taking a different approach. They are buying young and innovative financial technology companies to help them to develop their own digital offerings. Some are also choosing to partner with a company like Lunar Way that can provide users with a truly relevant and efficient digital experience.
The white paper states, “Banks that have embraced a journey mindset have increased their revenues by 25% and their productivity by 20% to 40%.”
Despite the significant upturn in productivity and revenue the report says that very few are taking this route, “few financial services institutions have fully embraced digitization. While most have some degree of online and mobile banking presence, functionality is often scattershot and limited to the front end. In fact, our research shows that only about one bank in five offers consistent digitization for any given process.”
Consumer awareness of the advantages of fully digital mobile banking is growing, even the chief executive of the British Bankers Association, Anthony Browne recently said, “Customers and businesses have already found digital banking hugely convenient and have taken advantage of mobile technology that is allowing us to bank round the clock.” as reported by the BBC.
This creates a growing awareness of, and demand for, full service mobile banking. It appears many banks are falling short, and may be taking too long to realise what a crucial factor digitization will be. Thankfully Lunar Way are here to provide exactly the type of mobile banking service modern users are crying out for.