Uber, Lyft, and Airbnb are all the rage. Why? They are examples of companies that have utilized disruptive technologies and business models to simplify an existing process, and provide an easier customer interface and better customer experience. Uber, Lyft, and Airbnb have taken the friction out of the customer journey and emphasized the experience. But why is this relevant to the financial services industry?
Uber, Lyft, and Airbnb have targeted highly regulated industries and disrupted consumer expectations. Their success paints the picture that as customers use more and more of these types of apps, their expectations of their bank will change. They expect powerful services to be delivered at the swipe of a smartphone screen, wherever and whenever they want. The question now shifts to what can the financial services industry do to “lyft” the banking customer experience moving forward?
Over the last decade, banks have been closing branches at a rapid pace leading to a significant decline in branch banking. In the US banks like Bank of America, Chase, and Wells Fargo have cut more than 15% of their branches in the last four years, bringing their branch levels back to that of the early 1980s. The reasons for the significant decline in branch banking can be solely attributed to the change in customer behavior. Digital and mobile banking has led to customers not needing to visit a branch for most of their banking activities.
The growth and innovation in technology, including the recent emergence of chatbots and artificial intelligence (AI), is leading to the emergence of an alternative financial services experience. But it will be more than just digitizing existing financial services experiences. Brett King, a renowned commentator and globally respected speaker on the future of business, predicts it will go well beyond that and “banking will embed financial advice into the daily life of the customer.” He also predicts that “banks will shift away from products to experience, and the future is putting banks in the lives of the consumer with minimal friction.”
To learn more about the Digital Banking Revolution, join Brett King and 7.ai for a Webinar on Feb 23, 2017. The webinar will discuss:
- What key trends impact banking today.
- How to reduce the friction being experienced by customers in their banking journeys.
- How chatbots, AI, and big data improve multi-channel experiences.