Digital is changing the playing field so much that by 2030 eighty percent of traditional financial services firms will no longer exist as they once did. Many of them with either become commoditised, no longer be relevant to an emerging market or remain, but only in principle as the market around them continues to evolve.
Here are some of the reasons why:
As technology continues to evolve and become smarter, so do the ways you can use it.
This is especially true in financial service where transactions can happen virtually without the need of actually being in a bank or office.
The result is newer, smaller and tech savvy players are emerging and focusing on niche offerings that appeal to a technologically advanced consumer.
Another reason is the common mindset with digital is efficiency, and whilst this is good it isn’t only about that. The internet of things, big data, geo location services and biometrics have radically transformed our traditional landscape. We now live in a physical worth with a digital overlay. Digital is not just a channel it is the way modern consumers engage with the world.
All to often a tech solution is seen as a get out of jail free card. it could be an enterprise solution or some other product that is seen as the remedy. The challenge here is you are not the master of your own destiny, the technology is. It is dictating how you function and not the other way around.
Lastly in many traditional financial service businesses tried and trusted processes that have worked well in the past have remained, but at the cost of doing business with a customer who now expects to get answers in an instant. The net result is slower growth and market share that us slowly being eaten up by smaller more agile competitors.
How to fix it:
Start with your vision. This may sound like a cliche. But start there. Think digital. Decide where you are wanting to lead the business first based on how best to service your customer in the future.
Then work on how you aim to led your team. Where are the skills and capability gaps that you need to plug to move the business forward.
Lastly look at technology. How can you use it to support your vision. Remember tech can be copied, but a vision is much harder to copy because it’s yours.
So what do you need to build or buy to compliment your vision of the future.
Here are some questions to ask yourself:
- What does the servicing of your future customer looks like?
- Is my vision clear enough for people to start working towards it?
- What three things do I need to prioritise to get there
- Am I constantly adjusting and refining along the way Remember: Start with your future customer and think beyond bricks and mortar. Digital is not a channel. It is all encompassing
How we help:
For 16 years We Explain Stuff has worked with leaders in industry to help package and explain their strategies, processes and products simply.