To keep bigtech at bay, banks should see fintech as friend, not foe
INDUSTRY INSIGHTS BY FLYBITS
Bigtech is embedded in every facet of modern life. Acting as concierge services, platforms such as Netflix, Uber, Amazon, and Google set the standard for how consumers interact with the world around them. These companies have set high benchmarks for consumer expectations — benchmarks that consumers also want from their financial institution.
To compete and stay relevant in the face of change, financial institutions must look to revolutionize the types of services they offer consumers. This can come in the form of lifestyle banking, AI-driven, smart offers and predictive next-best-action. However, in the face of mounting competition, financial institutions must go a step further to stand out from the crowd.
Impossible as it may seem, this is a feat that can be accomplished by leveraging contextual intelligence and layering it on to proprietary data to deliver hyper-personalized customer experiences.
To achieve this in a timely manner, banks need to partner with fintech and leverage their capabilities to revolutionize banking and combat big tech.
When banks and fintech collaborate
A collaboration between fintech and legacy banks has the potential to thwart any attempt made by big tech to take over the financial services space. Envision a bank with better customer service than Amazon and better personalization than Netflix. By joining forces with fintech, banks can make this a reality in the not-so-distant future.
Predictive, personalized products and services will lie at the heart of the elevated banking experience. Imagine if you could surprise and delight a customer with an offer based on their proximity to a shop they frequent, identify that a customer is traveling and provide suggestions and discounts on local attractions or popular restaurants, and even provide non-traditional services like proactively notifying consumers of delays in their commutes. Technology that can read and act on data in real time can do that and more. From recommending investment products to customers with rising incomes to recognizing optimal times to directly engage with customers, banks have a world of possibilities ahead.
Technological innovation is the banking battleground of the present and near future. Consumers want new and better services more specifically tailored to their needs and goals. To provide this, banks must explore the possibilities of smarter technology. Daunting as it may seem, making this technological shift doesn’t necessitate a full-scale infrastructure revamp. Rather, it requires careful consideration of the fintech partnerships that are made in the process. Specifically, solutions that can work with your organization by plugging directly into your bank’s existing infrastructure ensure a quicker time to market, allowing you to provide better customer experiences and see improved ROI sooner.
This article is also featured in the FinovateSpring 2019 Supplement. Click here to read the supplement online – it is free and no registration required. Just click and read!
Or pick up a complimentary print copy at the FinovateSpring conference (7-10 May 2019, Hilton San Francisco Union Square, San Francisco).