Traditional banks and fintechs should prepare for an increasing role of big technology firms in financial services. But they can also try to copy their success.
Banks, fintechs should brace for bigtechs
More than 7,500 fintechs have raised over $109.8 million, yet most will likely fail partially as they can’t find the right partner, Capgemini’s new World Fintech Report 2018 predicts.
As traditional financial institutions and fintech firms alike build out their plans, they should also anticipate the role big technology firms, like Alibaba and Amazon, firms may play in the future. Although the bigtech phenomenon is being most strongly felt in certain China and Southeast Asia markets, it will eventually become regionally agnostic, the report says.
How to copy Amazon’s success in digital sales?
So how does Amazon keep its place at the top? There are three practical lessons that today’s retail banks can learn from CEO Jeff Bezos’ model, according to Derek Corcoran, chief experience officer at Avoka.
He suggests banks must be willing to treat different customers differently, consider abandonment as an excellent experience opportunity and embrace continuous experience improvements. “Customers’ lives are complicated enough, so banks must do something radical to make doing business with them easy! After all, it’s the hallmark of Amazon’s success and growth,” Corcoran says.
Revolut reaches a milestone in profitability
Revolut has become the first digital-only bank in Britain to break even. These firms have seen significant user growth, but all have been loss-making so far, Reuters has reported.
Unlike its rivals, Revolut offers paid-for premium and business accounts, that have proven lucrative for the start-up. It is also the only British digital bank to operate across Europe so far.
Boosting sales ROI: 4 actions for change
Driving sales growth today requires fundamentally different ways of working as well as outstanding execution across large, decentralized sales teams and channel partners, according to McKinsey’s new insight on how digital and analytics can drive new performance and growth.
It suggests organizations should use data to prioritize and personalize capability building, use digital to enable what matters for each sales rep and provide proper insights to them. And also “communicate, communicate, communicate”.