With all of the new developments in banking these days, it’s easy to lose touch with what really matters: the customer experience. To enhance their customers’ journeys and earn their loyalty, research shows that bank staff need to develop effective communication channels, listen and then learn what matters most to customers. What’s important to them may not be precisely what bank employees expect.
It’s now pretty much universally acknowledged that the UK retail banking market is being disrupted by new, digital-first competitors – the so-called ‘direct’ banks. The narrative is that these agile upstarts are stealing customers away from incumbents by offering compelling new services and unprecedented levels of convenience.
Whether traditional banks choose to embrace them or not, direct banks are here to stay and are seeing unprecedented growth. In the US, Direct banks are attracting new customers at an eight percent annual compounded growth rate in comparison to physical bank branches
2018 will go down as a landmark year for the UK banking and payments sector; marked as it was by regulatory changes that have opened the way for new modes of service provision. Here, I want to look at some of the main forces that have shaped the banking and payments landscape in 2018 and look ahead to what this might mean for the sector in the year ahead.
There’s good and bad news for UK banks in the 2018 FIS PACE study on SMB banking, which surveyed hundreds of small-to-midsized businesses (SMBs) throughout the country. The good: 7 out of 10 SMB clients are satisfied by their banks’ performance.
Financial services firms face a range of headwinds. The last thing they need is a regulatory tornado blowing the house down due to data integrity and reporting errors.
The digital transformation of society as a whole has changed the expectations of customer services within the financial services sector. As a result, retail banking operations face testing times as the industry goes through significant and rapid modernisation.
“This time is different”. The four most dangerous words in investing are normally whispered at the peak of a bull market. Said as a caution on a downswing they are not quite so dangerous, and amid regulatory, market and technological disruption, banking really is changing markedly in a way from which we see little prospect of a return to the earlier status quo.