The Customer-Centric Future of Mobile Financial Services
By i2c inc.
Read Time : 05 Min
Still musing a bit after our exhibition at BAI Retail. Not wanting to boast, but for i2c, mobile commerce is a reality and we continually strive to innovate the products, services, and solutions needed to support the convergence of mobile, loyalty, and commerce. Currently, for many banks and credit unions, the migration to mobile commerce and banking channels has been largely additive as opposed to a complete transition of behavior.
But, there is no doubt that mobile banking will continue to weaken the traditional financial services stronghold on the consumer. While inertia may be the main reason current bank customers don’t switch to mobile commerce as quickly as some might imagine, it’s evident that it is a slowly building tsunami. To avoid organizational peril, traditional banks and credit unions need to quickly mimic the new digital leaders.
This won’t be easy for many. It’s not a technology issue – the capabilities are there from leaders like i2c and others. In my view, the issue will rest with the agility and stronger innovative culture that will be required for financial institutions to compete effectively as the industry invests to upgrade legacy back offices.
Deeper customer insights will need to be leveraged to provide real-time solutions to customer needs. This means that banks and credit unions will also need to eliminate antiquated products, streamline offerings, and build new services that leverage the new digital delivery capabilities.
By using digital capabilities to track transactional and channel behavior, banks and credit unions will be able to develop better services and offer new solutions in real-time. This will greatly enhance cross-sell opportunities and increase the share of the wallet.
It won’t be achieved by simply adding mobile capabilities to existing products and services. Success will come from new approaches to existing needs. What is needed is a more “customer-centric” organizational focus vs. just a “customer-focused” approach many use today. I believe the difference is vital. Let me explain with a couple of examples.
A “customer-focused” financial institution provides products and services that customers want, but they do not drive ALL operations around the customer. Apple is a good example. With their customer focus, they build products customers love, but the customers don’t get a say in the functionality of those products.
But, what works well for Apple, will not necessarily work well for a bank or credit union when it comes to financial products and services.
A “customer-centric” financial institution on the other hand puts the customer at the center of the organization (think of a circle with the customer in the middle with the next circle being the financial institution). It’s not the top-down management chart we are used to seeing from many financial institutions.
From that perspective, in a customer-centric financial institution, all operations are focused on the customer and their requirements. A customer-centric financial institution taps current customers for ideas and sometimes even trials ideas with existing customers before rolling them out.
See the difference? Customer-centric means you’re building new mobile products and services that customers want and will differentiate you in the eyes of your current and potential customers. This means not using mobile as the replacement for branches and support channels, but building on top of existing offerings. Secondly – you will never go wrong by keeping it simple.
Centuries ago Leonardo DaVinci said “Simplicity is the ultimate sophistication” and that still applies today. And lastly, think beyond the transaction to the life-time value of your customers. So go ahead and get your organization on board with the customer-centric view of mobile financial services – your future depends on it.
