Digital banking is now mainstream. Customers expect a range of functionalities and compelling user experience across internet, mobile and branch. Core services expected include the ability to:
- Service day-to-day banking needs.
- Access product information.
- Complete customer on-boarding.
- Open accounts.
- Extending and deepening the banking relationship.
- Close accounts.
The UK banking market can, on the whole, be classified as a 'digital adopter', in that it adopts new ideas once they have been proven elsewhere. A lot of change tends to come from customers creating market pressure through increasing expectations around the the core services offered.
Looking at the retail and luxury goods sector, individual customisation and personalisation is becoming more prevalent. I expect this trend to translate to banking services. Competitive pressure also creates marketplace innovation. Digital champions will continue to compete for customers, supported by PDS2. FinTech start-ups will also look to extend their current service offerings, as barriers to enter the banking market drop. Today, FinTechs generally only offer selected or limited banking services which do not fully satisfy more complex needs, however they are effective at exploiting speed-to-market. This speed-to-market is likely to continue to disrupt the market place.
Looking to the future, customer expectation for niche and tailored financial services personalised for their needs will only grow. These services are likely to be provided by an ecosystem of business and service providers - a concept known as 'marketplace banking'. Banks should look to future-proof their market position by continuing to expand into an Open Banking future and establishing an ecosystem of partners to provide these personalised experience demanded by customers.
You can find out more about the latest digital banking trends with our 2018 EMEA survey.
Customers expect personalised services and this demand has now spread to financial services.