EVOLUTION OF BANKING

THE FUTURE
Customer
Educated and empowered by their bank and
financial services providers. With the right
tools, products and information to manage their
finances and make decisions after meaningful
conversations.
Relationship with bank
A trusted, transparent, two way relationship, where
customers are fully informed about the costs and
benefits of the products and services they choose
and how they might meet their current and future
needs, and the provider proactively engages
the customer at the right time with relevant
information to help the customer avoid financial
nightmares and achieve their goals.
Customer
centric conduct
environment
Customer centric
approach to regulation
creates a growth
opportunity for those
who genuinely know and
meet their Customers’
needs.
Customer
advocacy & Net
Promoter Score
Delivering great service
and driving customer
advocacy is a minimum
expectation and crucial
to a bank’s operations
in a market where poor
service can easily result
in switching banks.
Cost/income ratio
and sustainability
The main lever banks
have in their direct
control to drive growth
in a flat economy with
low interest rates, will
be to rapidly reduce
costs – alongside greater
transparency on free
banking.
Supporting market integrity and continuing growth
Flight to better
quality customer
portfolio
Focus must be on
growing profitable
segments whilst
providing simple low cost
banking to low margin /
loss making customers.
More customers doesn’t
always equal more profit
Technology enables
Helping customers and those who serve them live,
work, play and learn in an easier, more convenient
way, giving them control anytime, anywhere, always
on and available. Always able to ask questions and
get answers.
Safe and secure
Keeping customers and Banking as safe as
possible from threats of data loss, fraud and
reputational damage.
Cross sale
penetration
Banks need to
dramatically increase
cross sell penetration
and share of wallet from
their existing customers
by knowing them better
than the competition.
Technology
constraints
Maintaining resilience
whilst improving
capability and capacity,
whilst innovating, will be
challenging with legacy
systems and delivery
models.
New lending
concepts
Innovation in the lending
market through crowd
funding / peer to peer
lending will grow as
investors seek out better
returns. Payday lenders
will evolve their offering
and fees.
New entrants
Competition from
multiple new entrants will
be significant – service,
distribution, technology,
targeting profitable
segments with attractive
rewards.
Regulator’s goal
The aim of the regulator and of continuing
regulator reform is to foster an environment in
which consumers have the information they need
to work out which products might best meet their
needs.
Digital tools are allowing banks to re-engage with customers
Improving customer engagement is necessary to retaining trust. Customers are already doing this
through their use of mobile, where they are touching their financial services brands on a much higher
frequency. Investment in this channel can only enhance the brands in the customer’s eyes due to
the great service they can consistently receive. Maintaining trust and relationship is essential to the
improvement of financial performance and maintenance of return to shareholders.
Customer-centric design and delivery provides the customer with the tools and information they need
to control their finances as effectively as possible.
The Evolution of Banking and Financial Services | 49