- November 13, 2017
- Posted by: Mary Beth Sullivan
- Category: Business Plans, Customer Experience, Distribution Channels, Marketing, Retail Banking, Strategy
What are the biggest differences in retail banking today and what it will look like in 10 years? And what are the implications for strategy? Here are some of my ideas. I want to hear your ideas.
- While millennials are an important segment now, they will be even more dominant in terms of driving demand for virtually all retail banking products. And what’s good for Millennials tends to be good for everyone (e.g. more simple, faster, digital). DESIGN FOR MILLENNIALS – AND ALL SEGMENTS WILL BE BETTER SERVED.
- Banking will become more of a “platform” where applications from partners, especially financial technology applications, are made available to customers and the experience of engaging with those applications is much more seamless. FOCUS ON THE PLATFORM AND APPLICATIONS, NOT PRODUCTS.
- Banks will be much better able to leverage the rich information they have about their customers to better customize value propositions and deliver them at the right time and through the customer’s preferred channels. MAKE INFORMATION AND INSIGHTS A NEW FOCAL POINT FOR DIFFERENTIATION.
- Banks will remain the primary provider for the consumer’s payment products (credit, debit, checking, etc.), although the battle here is heating up; various forms of payment (card, debit, P2P, etc.) will be more closely “linked” in terms of value propositions, and consumers will rely on their banks to offer a better degree of safety and security around their payment transactions and deposit dollars. PAYMENTS ARE THE NEW BATTLEGROUND FOR PRIMARY RELATIONSHIPS AND DEPOSITS.
- Branches will be less relevant than they are today; we will continue to see branches close in many markets but remain in older, more affluent markets and in business centers. PLAN NOW FOR THE TRANSITION; REDIRECT INVESTMENT TOWARD ALL THINGS DIGITAL (INCLUDING MARKETING).