Over the past few years, there’s been a lot of talk about the “revolution or “disruption” taking place in the world of banking and FinTech, and the threat posed to those institutions that haven’t stepped up certain procedures or taken action to ensure they remain competitive.
Still, it looks like FinTech organizations are making a positive impact on financial services generally and banks in particular. The PWC Global Fintech Report 2017 revealed that 63% of bankers see the rise of FinTech as “an opportunity to expand products and services” and how they are increasingly turning to these companies for partnership opportunities and a means to broaden their offering. Banks view the rise of FinTech not as a threat per se, but as a conduit to becoming more progressive, more innovative and more customer-focused, by adopting the latest technology and best practices for their businesses.
To me, this points to a certain maturity. The rapid rise of FinTech has meant that banks have been forced to tackle deep cultural issues and make way for a new approach. We all know that whenever culture is involved, change is neither easy nor widely accepted. Still, the banking community has shown a remarkable level of flexibility and openness towards building services for a new customer profile – tech-savvy and always-on-the-move, demanding complete information in real time.
Ultimately, that’s what it’s all about: satisfying a new generation of customers that are accustomed to more for less. According to the PWC report, “banks are focusing on the improvement of their operations through digital solutions, and are looking to increase customer empowerment and/or control of financial matters.” Customers can now choose whom they want to do business with and are well aware of the power this brings. They demand everything, along with the stability and reliability of a traditional bank. Simply put, they want the best of both worlds.
The banks seem happy to oblige. Instead of perceiving the FinTechs as the enemy, they’re engaging in collaborative models that provide the technology they need to improve customer satisfaction and loyalty. “Banks are likely to continue to focus on improvements to their customer experience, even if it affects transformational growth opportunities in the short-run,” the PWC report goes on to say. It’s clear that customer experience is a critical factor for long-term success, and is an area that banks have decided to invest in.
As communications technology provider, we appreciate how important it is for the customer to be given a choice. We see examples of this every day. Have a look at our recent paper here.
Global brands in the financial services sector have implemented our technology to ensure their transactional messaging infrastructure meets the highest standard in the industry, helping them optimize customer relationships by maintaining robust and efficient communication streams. After all, the way in which organizations communicate with their customers reflects what every leading brand strives for: reliability, stability, and engagement.