Bankers need to think digital rather than use the term ‘omnichannel’ because the Internet is not a channel.
I was at a conference recently when somebody said, “I hate the phrase ‘omnichannel,’” and then went on to talk about the cloud, big data and more management gobbledygook.
Now, don’t get me wrong, we all hate buzzwords but I really hate the use of the phrase “omnichannel” (I call this a phrase, as it is two words). I hate it because it’s just some made-up phrase that some technology marketing person dreamt up to talk about the challenge of all these digital touch-points.
At a time when banks and credit unions are trying to improve the economics of branch banking, iBeacon could deliver a personalized digital sales experience as soon as the customer enters a branch Office.
iBeacon, working in conjunction with Bluetooth Low Energy (BLE), can integrate the physical and mobile channels, enabling a bank’s mobile app to deliver highly tailored digital promotions, coupons or offers directly to the consumer’s smartphone when the customer is in the general vicinity of an office, at any specific location within an office or at an ATM.
Banks have a unique opportunity to capitalize on the vast amounts of customer insight they hold to go beyond simply facilitating payments. They can reinvent themselves as an Everyday Bank, helping customers reach decisions about what to buy, when and where to purchase, and even helping to negotiate the best deals in a ubiquitous format.
Today’s banking and credit union customer is hyper-connected, highly informed and demanding a highly personalized approach with regards to communication, product development and customer service. These customers cannot be defined by a specific age or income category or geographic parameter, but by their ability (and desire) to adopt and apply new technologies to meet their banking needs.
Say “Hello” to Customer 3.0.
As customers continue to change their channel usage patterns, banks and credit unions must focus on delivering a consistent and seamless experience across various touch points. More than just a buzzword, omnichannel banking is an opportunity to deliver bottom line results by gaining insight into customer’s channel preferences and behavior.
Another day, another challenge.
Again, it’s to do with the move from the physical distribution of paper to the digital distribution of data (my favourite mantra of the moment) and the way in which things change.
Think of it this way, I’m talking to a company about relationship management.
Their view: it all comes down to a trusted advisor and that person is your human connection in the branch.
That relationship is where the trust lies, not with the bank or the industry or the brand, but with the human or humans you deal with in the branch.
When we talk about rebuilding trust in banking, the trust was lost in the industry, the bank and its brand, but not with the human you relate to in the bank: your personal account manager.
I totally agree.
Read more at Financial Services Club Blog
Digital Banks have a completely different culture to Physical Banks
It goes without saying that the branch experience has changed drastically over the past century and even more so with significant advances in technology in just the last decade. With walk-in traffic electing to embrace home and mobile banking options, several leading banks are directing their focus and attention on investments that improve the digital experience to complement, not compete with, emerging consumer preferences. Despite the recent trends, we still see opportunity for branches to thrive alongside these non-traditional banking channels in the near-term and long-term.
Building on yesterday’s debate about Google and co coming into banking, and the previous discussions of such:
… and there’s been loads more, I was shocked to stumble across a survey this week that shows the attitude of Millennials (people born from the 1980s to 2000 that grew up with the internet).
The survey is called the Millennial Disruption Index (MDI), and represents a three year effort by Scratch, a creative agency. Scratch interviewed over 10,000 Millennials in America, and asked for their views about 73 businesses in 15 industries. The results are astounding, finding the most likely industry seen for disruption is Banking.
There are two popular misconceptions that are legacy from last decade: customer relationships and customer demographics. These do not apply to Digital Banks, but incumbent banks still use them.
On the relationship side, most banks talk about relationship banking. They want to have a relationship with the customer. They need to engage the customer in a great customer experience and all that. It’s all very needy or worthy, dependent upon your view, but again it is misguided.
The key thing here is that I’ve heard this relationship thing for a long time too. It started when banks started discussing share of wallet and lifetime financial management. The whole idea is that the longer you could keep a customer and cross-sell to them, the greater the share of wallet you got and hence the more profitable you became.
Times are changing, and today’s digital world is having widespread effects on an array of consumer behaviors, including how we handle our finances. Electronics and mobility are key trends for financial institutions to keep track of, but consumers aren’t ready to sever all ties with their local bank branches just yet.
According to Nielsen data from a custom study conducted in November 2013, the vast majority of U.S. consumers (82%) have entered the digital arena, stating that they banked online at least once in the last 30 days. The high percentage speaks to the prevalence of the digital world in consumers’ lives, especially when compared against the 68 percent of people who said they had visited a physical branch in the same period.