Technology has flipped the financial services industry on its head. The industry has been transformed due to the ever-empowered consumer who has the ability to connect with financial institutions and with each other in new ways. The strategy of the big players in the industry is being dominated largely by 3 properties, and how they each maximise these aspects will be a key determinant to their future success.
The customer now holds the cards. They are more informed and tech-savvy than ever before, and the strengthened competition within the financial services industry means that brands sink or swim on the standard of their customer experience, the ‘touch points’, they provide on a daily basis. Using banking as an example, the customer experience (either good or bad) is the most cited cause for changing providers. As a result, banks are now seeking new ways to be top of wallet and differentiate the customer experience.
To this end, 2015 was the year of contactless payments, with Apple and Samsung once again locking horns as to who can own the market. In Europe, alternative-payments players represented just 1.5 percent of the market in 2012; Forbes estimates that figure will increase to nearly 15 percent by 2020—an annualised growth rate of more than 35 percent.
Due to the lessons learned from the financial failures that took place over the last 10 years or so, the industry is subject to some of the most complex regulatory directives within business. Achieving regulatory expectancies will require companies to lengthen their focus from improving specific processes to fully integrating risk management, compliance, and ethics into their culture.
The buzzword that ties these points together is trust. Providing trust to customers will convert them from just a revenue stream into an advocate. And now that social channels have enabled us to immediately share our experiences, the financial institutions that are trusted by their customers will reap the referrals that come with this and will be more likely to have their customers do business with them alone.
The CloudBe Boundless: Drive Global Business with eSignatures
Which leads us to the final piece of the puzzle: the Cloud. Cloud technology is enabling financial institutions to differentiate their service by improving the customer experience while ensuring the highest level of security and compliance.
Until recently, larger companies have ignored the Cloud because they didn’t trust the systems, security and reliability. But having witnessed the benefits that start-ups and those in other industries are enjoying, they are now beginning to invest in technologies like customer analytics to leverage their data, and deploy electronic signatures to sign documents faster.
Metro Bank employs both of these technologies to gain a competitive edge; using data analytics to give customers great offers that are personalised at the point of relevance, and electronic signatures to enable them to sign off documents quickly and easily, rather than having to fill out endless paperwork. It has even started targeting disgruntled customers of its competitors by tweeting personalised messages to them for an account opening opportunity!
Be Boundless: Drive Global Business with eSignatures
The eIDAS regulation, effective 1st July 2016, opens the door for businesses operating in continental Europe to realise the speed, transparency, security and financial benefit of digital services with a simplified and standardised approach to electronic signature. Join Richard Oliphant, DocuSign General Counsel EMEA, as he explains how you can best capitalise on this new opportunity and what the new regulation means for your business, whether in the UK, or the EU.