Will Consumers Build Digital Banking Products?
Could consumers crave for renovated bank savings account passbooks? These paper books have long faded away, and bank customers get their transaction records electronically. The number of paper checks continues to dwindle, and banks process digital check images. For people who still cherish financial transactions on paper, traditional checks will be available for a while. But how many customers are willing to pay premium fees for checkbooks, anyway?
In our marvelous digital epoch, new products crop up daily, everywhere. Some digital products might enjoy a viral surge, thrive for a while, and rot away at warp speed. Nowadays, the digital preferences of the modern consumer behoove banks to innovate deeper and faster. Banking products and services will come and go at digital speed. Banks must break out from a mindset rooted in single-threaded paper records and heed the concurrent and social interactions of the digital world.
Banks will develop a sharper focus on the digital consumer and tap integrated technologies that provide more comprehensive, deeper, and personalized customer insights. A 360-degree view with predictive analytics will help banks anticipate customer needs and relevant interaction opportunities. And customers will appreciate holistic digital banking experiences.
Disruptive Fintech firms are flexing the grip on bank credit and regulations. Several banks are already transforming their core systems to operate in a real-time digital world, and adopt intelligent technology platforms to model and predict customer behavior. Such capabilities will enable banks to launch creative digital services. And accommodate interconnected customer transactions that span commerce, industry, and lifestyle scenarios.
Banks should strive for the creation and fulfillment of “instant” products, and allow for a much shorter life-cycle. Digital customers expect nothing less. The challenge is to truly energize and inspire customers, and keep them motivated to grow their business with the bank.
What digital banking products and services will bring new value to customers? Information and opportunities abound. Some banks may become truly insightful and anticipate emerging customer needs or market shifts. And prepare for impromptu customer demands.
Digital services also mean that banks should be always available, anywhere, and ready to serve their customers. As ready as an all-providing digital genie. The ultimate test will rest with the customers. Riding on waves of tiny digital moments of truth, customers will decide which digital banking offerings may pick up momentum or sink. As digital banking services become intertwined with other industries, everything will pivot on the customer.
How about teaming up with customers? Banks may try out innovative ideas collaboratively with customers, and obtain immediate feedback to craft digital prototypes. Smart chat-bots and digital agents are now capable of informing bank relationship managers, product specialists, as well as customers, about the best alternatives in personal or corporate finance. Much in the same way that team collaboration platforms are empowering bank and third-party employees, they may also extend to customers. So, banks should allow customers a direct say in configuring and building digital products.
Read more on the Microsoft Banking & Capital Markets and Insurance blogs.
