Financial Services Innovation: Something Is Missing!
One bank containing led the innovation agenda is Barclays. Australian financial services in the future
In fact in the last couple of months Barclays announced the development of biometric finger scanning, in addition to video banking. These innovations should improve both the customer experience and overall security measures... so may be win-win for Barclays and it is customers alike.
Video banking especially gave the impression to require a people without warning. However, it makes sense, which is likely to become commonplace through the industry within the next several years. The reason is, Barclays is leading a, and may be congratulated.
The Challenging part!
Task, as all financial services companies know, isn't injecting some innovation here or sprinkling a certain amount of magic dust here.
Everyone struggles with embedding innovation into complex multichannel environments, constrained by organisational silos, competing executive priorities and balanced against a 'must do' regulatory programme portfolio.
Providing a consistently good customer experience across multiple customer channels is tough now. Later on, it'll are only able to really become harder!
One bank customer review really jumped out. An enterprise Banking customer, told us about his difficulty to get in touch with his bank. Digital disruption and financial services
In the review, the consumer started his customer journey with a broken web contact page form, then attended Twitter, where after approximately 20 messages, part of the organization banking team, without apparent expertise in the Twitter conversation picked-up the device. The consumer labels this experience as 'the general mess of their communications.'
Not so long ago, using twitter for many financial services organisation was in itself viewed as a big innovative step. Engaging customers through multiple channels is great! In it the client experience was clearly disjointed, and via Twitter Pete received replies from three other banks offering to consider his business instead!
In such cases, the customer's expectation was clearly not met, and multichannel engagement didn't work.
However, the long run could be very bright!
The pace of innovation will likely not decrease. In reality, we presume that there are some pretty inspiring innovation not very far which will really please customers. This has the potential to be nice thing about it!
Financial services firms will need to be better at implementing innovation, but also at performing each of the core processes (e.g. making and receiving payments). In fact, an attractively designed app which doesn't work really won't please customers for days on end!
Innovation won't build sustainable advantage
The innovation wave is collecting power. All organisations will join the wave, as no-one can manage to be left behind. Some organisations will lead the charge, yet others will perform well to never fall past an acceptable limit behind.
Nevertheless, looking throughout the industry, all financial services companies want to get better at communicating, managing customer expectations and being more open. This is probably the most difficult nut of most to crack, but vital if sustainable competitive advantage is to be gained. We argue that it will even be central towards the innovation agenda.
Customers desire to love the brands they shop, eat, travel and bank with! Innovation in financial services isn't enough. To seriously build sustainable advantage, financial services organisations must lead the consumer trust and transparency agenda.