Who’s your hero?
As technology is evolving, banks are struggling to keep up on the digital front. There are numerous vendors on the market that provide banks with different solutions in an attempt to digitalize the banks channels. Today, mobile apps are immensely popular in every industry including banking. Going ‘Mobile first’ is a new mantra at most small and large banks. However, the number of unsuccessful projects related to digital banking is on the rise. Why is it that banks, even with high technology spend budgets are not able to nail digital banking? The answer in my opinion is twofold:
Customer Centricity — Now we’ve heard this one multiple times. Focus on your customer and what they want. The truth is, most customers don’t know what they want. They have an idea but no clear picture.
If you look at Facebook for instance. There wasn’t a particular need in the market for a social media website. Customers didn’t wake up thinking about “I wish there was a social media website that would allow me to post pictures and share them with my friends.” Perhaps, they did wake up to “This is going to be a great weekend at the beach.”
Now, what does having a great weekend have to do with Facebook? Everything. Great weekends equal great memories. Great memories mean something you want to remember keep and share. Did you see it? The key in my opinion is to integrate into your customer’s life and facilitate their emotions, memories, needs and wants.
This is easier said than done because banks are not as fun as Facebook or Instagram. However, banks do hold something that is near and dear to customers. Their money and financial information. Most will need to have some kind of engagement with their bank. Make the most of this opportunity.
For most retail customers, it’s the smaller things that matter more. Does your customer think about what mortgage is best of her/him multiple times a day? Probably not, perhaps once in a lifetime when they need to buy a house. The smaller things that matter are related to the his/her life such as making payments at the supermarket, sending money to a friend, paying for a cab ride or paying utility bills etc. If you can integrate seamlessly in the life of your customers helping them with their daily needs rather than a product like a “mortgage” or “savings account” you are likely to make all the difference to them.
Technology — Now, the part that everyone loves. The technology.
To be honest, once you have established a baseline in terms of your customer segments and behaviors etc.
You would want to understand where you fit in — what and when is your point of digital contact with your customer. These could be transactions, transfers or financial/non-financial advice or offers. The better you define this the more clarity you will get regarding technology choices. Once this is clear, the decision regarding technology becomes fairly trivial.
Whether you want to create a digital spin off of your bank or revamp your current offering is up to you. As long as you understand where you fit in your customer’s lifestyle and what positive impact you can make during that encounter is key.
Some banks (understatement) suffer from Martec’s Law — Technology changes exponentially, organizations change logarithmically. One can argue that most of it is for good reason and regulations but sadly resistance to change has settled in as culture over the years and needs to change to progress.
I believe that customer centricity is about making an emotional connection with your customer and fitting into their lifestyle rather than trying to fit them into a “product” in your bank. As for technology, banks have been software houses for decades. Evaluating technology is a strength most banks possess but defining how that technology can positively affect your customer’s day to day life without being noticed is where the magic happens.
Remember, your customer is the hero of your story, not you.
