5 Experience Predictions for Retail in 2019
In the retail industry, one that’s known for its ability to continually reinvent itself and find new ways to connect with consumers, the huge shift in consumer behavior from physical...
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Traditional banks — venerable financial institutions housed in imposing stone and marble — are swiftly becoming a thing of the past. Customers are increasingly looking for friction-free ways of conducting their day-to-day banking, relying on online or mobile solutions to their banking needs before they resort to a physical branch. And where they can’t do what they want to online, customers are voting with their feet — of the people who switched banks in 2011, 32%* did so because they wanted mobile banking.
This trend is only going to continue — there’s no turning back. In the next couple of years, customers are estimated to interact with banks on their mobile devices 20-30* times a month, while actual branch visits will only occur once or twice a year*. Digital interactions will outnumber face-to-face interaction by 250 to 1*.
Yet many banks still believe that face-to-face interactions with a branch are not only necessary, but desired by the customer — that customers actually want to visit a brick-and-mortar branch for the in-person services and advice. The reality is, a visit to the bank is a hassle. What the industry thinks of as “alternative banking” has become the consumer’s desired means of interacting with banks. To consumers, banking is important — banks are not.
This is a daunting gap to close.
How do banks navigate this change in customer behavior and expectations? How do they deliver banking services that delight and create loyal customers, wherever their customers are? Now that startups like Simple and Personal Capital — as well as non-financial tech giants like Google and Apple — are rapidly encroaching on the financial services space by creating solutions that reduce friction, these questions are about to take on life-or-death significance for traditional banks.
To that end, we’re extremely excited that Brett King recently joined us to discuss his book Bank 3.0, and the ways in which banks must evolve to meet changing customer expectations. Download the recording of our conversation below!* From Brett King’s Bank 3.0 Photo credit: el-toro