You order a movie online and additional suggestions pop up, based on a deep knowledge of your likes and dislikes. You plan a vacation and similar suggestions appear, reflecting your financial state, the climate in which you live (and may hope to escape for a time), and past travel history. These convenient, personalized interactions are common today - and evenexpected.
Yet according to a Cisco survey of 7,200 retail banking consumers in 12 countries, customer expectations for financial services are not being met. Many of the most valued customers - and not just tech-savvy Gen Y ones - feel disconnected from their financial services institutions. They state that their banks do not know them personally, and are providing advice only on the bank's terms - in the branch, during banking hours, when staff is available, - if at all.
Banks understand the digital imperative, and many have made important strides with omnichannel investments, particularly in streamlining transactions across channels. Moving forward, however, they must focus their investments on the right technologies and the right customer segments.
The next step of the journey is for banks to evolve the kinds of dynamic, personalized interactions that consumers now demand. Internet of Everything (IoE)-enabled solutions will be the key. IoE - the networked connection of people, process, data, and things - represents an explosion of connectivity with mobile devices leading the way. IoE is opening the door to better align with consumer behaviors and provide an environment where there is dynamic matching of customer needs and appropriate bank services in real-time, anytime -anywhere.
Cisco Consulting Services economic research estimates that by becoming as digital as its customers the upside for a typical financial services firm will be abottom-line increase of 5.6 percent. For a financial institution with$10 billion in revenue, thisrepresents a$392 million annual profit increase opportunity.
That is, if competitors - some from outside the traditional realm of banking - don't fill the void first.
Here are some of the key insights from the Cisco study:
By leveraging these IoE-enabled solutions, banks have a very real opportunity to connect with customers and capture wallet-share. A unique value proposition arises from banks' deep understanding of each individual's financial needs and the ability to offer a new dimension in services and convenience. Already, we have seen banks who are embracing the opportunity realize significant increases in customer satisfaction and double-digit performance increases.
We are all consumers and we are leveraging IoE to provide convenience and value to our lives. Financial institutions have the opportunity to benefit by moving from asking "Why?" to "How" and recognizing the opportunity to bridge the gap is "Now".
Stop by booth#4029 at BAI Retail Delivery to learn more or tweet us if you have any questions.