Where is the money market going?
It’s fairly clear digital brands who own space in customer’s lives have a significant advantage to offer better customer value by simplifying everyday tasks.
Brands like Amazon, Apple and Google who are now lifestyle providers continue converging traditional isolated products into their offerings. This was most recently evident when both Apple and Google launched their digital wallet services or when Amazon bundled video streaming with prime membership.
When looking at the money market, this vertical is no different to others. Digital transformation is driven in this industry by two key factors; customer experience demands and regulation changes.
Customer experience demands
Customers expectations are set by their experiences good or bad. In the main if a customer is delighted by a product which has brought them convenience, the expectation is why this is not the same across other products.
Looking at the money market customers are demanding more flexibility and convenience to pay and use money services which are specific to their needs
- Pay with convenience (digital wallet, messenger apps)
- Intelligent call to action (balance alerts, failed payments, money clearance)
- Smarter decision support (move money to gain higher interest, reduce credit card fees, move mortgage)
- Low entry to market
Regulation changes for providers
With regulation changes such as Open API in the UK and PSD2 across Europe, traditional providers will no longer own all aspects of delivering a service to customers.
Providers will have to deal with transitioning their business models to a data first approach and look at new ideas to continue generating revenue
- Open API’s and developer services
- Innovative new business models by converging product offerings
- Disintegrated services effectively
- Higher cost of entry
Lifestyle consumer providers are set to dominate space in customers lives, disrupting most things as we know it today
Customers demand experiences that delight and offer convenience and brands must focus on this
Regulation changes means more competition for traditional providers who will have to seek alternative business models to remain profitable