Big tech companies, like Amazon, are using their brands to offer multiple services and are obsessed with being customer-centric, especially in their long-term strategic decisions. Financial services firms should follow suit.
Banks must play the long game, like Amazon
There is an overlooked element of Amazon’s strategy that is ripe for emulation for banks, according to Alex Johnson, director of solution marketing at Fico. It anchors every decision it makes on the impact that decision will have on the company’s lifetime relationships with its customers.
This type of long-term, customer-centric strategic planning has proven effective for Amazon in numerous industries and it would prove effective in financial services as well. Amazon measures ROI in decades, not quarters and plays the long game with a focus on locking customers in for life.
SMEs will switch banks for digital payments
About 70% of small businesses in the UK are satisfied with their banks, but 22% plan to switch financial institutions in the next year, with digital payments likely driving defections, according to a new study by financial services technology provider FIS.
Poor communication plays a factor, as small and medium-sized enterprises report difficulties getting trusted information. FIS suggests having a relationship manager seems to exacerbate the problem.
How to reassess the concept of bank?
Amazon, Apple and Google have a brand that stretches to encompass multiple service offerings. Try doing that with a bank brand – you can’t, writes Louise Beaumont, strategic adviser at Publicis.Sapient.
As we move away from the outdated, mass-market product-push towards services, this has the potential to disrupt the entire notion of what a bank provides, she says. In the future, winning brands will not be segmented based on specific products, but on how much they are trusted.
Two thirds of US millennials don’t use cash
As many as 63% of US millennial consumers hardly ever use cash, with 75% saying they want more diverse financial products that are more suited to their needs and lifestyles, says The Future of Money, a new report by J. Water Thompson Intelligence.
New consumer attitudes are also continuing to be shaped by the shadow of the 2007-2008 global economic crisis. The report finds that 89% of US and Chinese millennials now prioritize long-term financial security.