Reinventing the banking wheel to stay relevant
Traditional banks have faced major disruption in recent years, thanks to changing consumer demands and increased competition from challenger banks. As a result, banks such as the Royal Bank of Scotland have been examining ways to reinvent themselves. Last week, Sky News revealed that RBS is working on plans to create a standalone digital bank to compete with emerging disruptors, such as Monzo and Revolut. RBS has said it plans to use, “automation and technology to deliver a more efficient banking experience that better reflects the changing way our customers now bank”.
Naturally, banks need to develop new capabilities to future-proof themselves. It is critical, however, that banks don’t forget where they came from and alienate those who prefer more traditional methods – after all, technology adoption isn’t immediate. Research from Quadient found 62 percent of UK respondents were only comfortable using banking apps for the most basic banking tasks, if at all. 24 percent said they would use an app for rare occasions such as large transfers and loan applications, while a mere eight percent would use their app for once-in-a-lifetime tasks, such as arranging a first mortgage. What’s more, Gartner recently predicted that 20 per cent of businesses will abandon their mobile apps by 2019, so any major changes could easily become redundant.
This means looking not just at what’s new, but what’s next. For instance, as applications fall out of favour, customers are likely to begin banking directly through their social platforms. If a bank allows customers to check their balance and make a deposit directly via Facebook, Instagram or Twitter – whilst also calming any of their privacy concerns – it can steal the advantage over its rivals.
At this time of adjustment, banks must continue to prioritise their customers and open up conversations to ensure they understand what the customer wants. Financial organisations must also remember the importance of proactively communicating any changes with the customer, over the right channel, and with a message that is relevant to them. No matter what changes the bank makes, if they focus on customer – they will go a long way in preparing themselves for the future.
To find out more about how Quadient can help, visit the customer communications management section of our website.