Borrowing the opening lines of Charles Dickens’ A Tale of Two Cities, banks are now in the best of times and the worst of times. Advancements in technology have given rise to changing consumer behaviors and enabled non-traditional players to offer banking services. Asian consumers today are 1.6 to 5 times more likely to transact with their banks via online channels as compared to physical branches. These consumers are also showing interest in using banking services offered by tech companies. For instance, Alibaba’s Alipay and Tencent’s WeChat Pay are now widely used by consumers in China for payments.
The need for banks to deliver exceptional customer experiences is now more important than ever, as customers are becoming more open to switching financial services providers (even if the provider is not a bank) if they found one that offered them a better experience. However, all hope is not lost. By making the right technological investments and adopting more flexible business models, banks have the opportunity to enhance operational efficiency and accelerate innovation in order to improve customer satisfaction and increase revenue.
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