Tech giants and fintechs are eyeing one of the most profitable markets of banks: digital sales. But how can financial institutions step up their game to boost digital sales and keep their customers?
Banks are facing major competitive threats today. Of course, most bankers already know this but there might be one thing they aren’t fully aware of: competitors are itching to eat away their most profitable markets. What’s at stake for financial institutions? Here’s a quick recap.
Origination and sales generate as much as 65% of global banking profits, totalling about $1.152 billion. And it’s these two profit drivers that are in the biggest danger. Banks must take action now if they don’t want to lose this profitability, otherwise they could easily end up as commodity providers with very thin margins within just 3 to 5 years.
Tech giants, such as Google, Amazon, Apple or Alibaba, have already started venturing into financial services. In fact, most bankers expect Amazon and Google to become mainstream players in banking within the next five years. But even more telling is that Amazon could easily recruit 70 million banking customers within that timeframe in the US alone, according to the latest estimates.
In the meantime, digital-only banks, another group of disruptors, are wooing customers away from traditional banks with easy-to-use and frictionless online and mobile services. How? Neobanks like Revolut and Starling in the UK or Fidor and N26 in Germany don’t have to bear the enormous costs of operating a physical infrastructure. Instead, they offer services in a simplified form, relying on real-time data and automated processes.
So it shouldn’t come as a surprise that tech giants and digital-only banks have a great growth potential in banking and may lure away many customers from incumbents. Customer expectations have changed a great deal and banking clients now demand the same seamless digital service they’re used to when shopping with Amazon or using sharing economy platforms like Uber and Airbnb.
Digital banking sales: get the low-down from market experts
The bottomline is that it really is time for banks to step up their game in digital sales. But what are the best strategies and practices to follow? What tools come in handy to boost digital sales and which sales benchmarks should be improved to stay ahead of the curve?
Banks need to consider alternatives to their often cumbersome core systems to power innovative services, according to Sarka Bartova, partner manager at Mambu, an alternative core banking system provider with 4.5 million clients served.
At our webinar, she’ll explain how next-generation core systems can enable financial institutions to roll out fully digital products and will also throw light on how to leverage data to come up with the right digital offers. You’ll also learn all about the importance of open architecture and APIs in automating workflows, for example, to push real-time offers to clients based on account balance or activity. Another topic to be covered will be digital core and client segmentation.
Want to hear the experiences of an incumbent bank? Attila Kezdody, MKB Bank’s director of data asset management and CRM, will also join the session and will be ready to answer your questions after the presentations. MKB Bank has already made strives in digital transformation and has become a leading digital institution in the CEE region.
Interested in current trends in digital banking sales? Or would like to find out more about conversion benchmarks and key KPIs based on actual banking data? We’ve got you covered. Tamas Braun, director of international sales and business development at W.UP, will share some of the best practices in digital sales out there.
He’ll also tell you all about how data-driven insights can help boost cross- and upselling volumes and what mistakes and traps banks need to avoid in digital sales. You’ll also be shown examples and use cases for the latest digital tools, such as third-party solutions that can hike up sales volumes.