Investing in innovation: what areas should you focus on to win in financial services today?
In order to overcome external and internal disruptive factors, financial services businesses need to adapt their offering. Innovation is key. But where should you focus your innovation investments?
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Every financial services business needs to think about transforming into a platform business, where they have a group of loyal and happy customers and a number of services they can sell to them, as well as to new customers. To do that focusing on three areas of innovation is key.
Use multiple digital channels to connect to your customers, providing them with a consistent and fulfilling customer experience.
Learn more about your customers so you can provide personalised communications and target them with relevant services.
Use this new insight to develop related services tailored to your customers’ preferences.
Make sure you aren’t distancing yourself from your loyal customer base by finding innovative ways for them to stay in touch.
Reach new customers on multiple digital channels to show you’re leading the way in customer service and connectivity, keeping you one step ahead of your competition.
“Full-service” banks, i.e. those that primarily operate through physical not digital channels, could lose approximately 35% of their market share to those providing digital services, by 2020.
(Accenture’s recent “Banking 2020” report)
Research from 9,000 bank customers found that every customer is a digital customer and 20% are digital-only users. Grow your customer base by providing 24/7 services.
(Accenture’s recent “Banking 2020” report)
58% of bank customers use mobile devices often when prospecting or seeking support, make sure you’re reaching and nurturing your customers through these channels.
(Accenture’s recent “Banking Customer 2020” report)
45% of insurance executives believe new mobile platforms and apps are forcing change in the business and pushing for transformation. Attract new customers by providing multiple browsing and support options from the outset.
(Research from KPMG International)
Using insight gained from your customers 'digital footprint' will help you create personalised customer journeys. Accenture’s 'Banking Customer 2020' report found of those who switched bank accounts, 15% did so due to a lack of a tailored customer experience.
By finding innovative ways of gaining information on customer behaviour, you can develop a 360 degree view of your customers. This valuable insight can help you target customers with relevant services, and develop new ones.
Customers are much less likely to move provider if they use a number of your services. Increase your stickiness by developing related services based on customer insight.
The more relevant services you offer, the more you can cross sell and upsell to existing customers. And if your customers are interested, prospects will be too.
Every financial services business needs to think about transforming into a platform business, where they have a group of loyal and happy customers and a number of services they can sell to them, as well as to new customers. To do that focusing on three areas of innovation is key.
It’s crucial for IT to turn from an inhibitor to an enabler if these innovative ideas are to become a reality. Converged infrastructure brings together and simplifies IT operations so financial services organisations can remove any avoidable obstacles to change while maintaining daily core operations.
Historically IT teams have worked in silos. Simplified infrastructure will help bring teams together, but every person within IT needs to be on the same page and working towards the same goal if innovative ideas are to be rolled out.
VCE lets IT shift resources from the tactical to the strategic to deliver greater business agility and enable real IT transformation. So financial services organisations can take innovation from ideas to action.