I’ve tried many times to make the point about banks managing the consumption experience (rather than managing consumers’ money). Emerging from the dawn of Mediterranean commerce, retail banks of our time did indeed provide customers with tailored services that catered to their needs. Times have changed with the proliferation of retail banking services to not-so-savvy folk, giving bankers the upper hand as they took the chance to take command of the partnership, and on an increasing number of occasions, duping people into purchasing unwanted products.
We can blame the period of darkness before Daniel Kahneman’s work on irrational factors in economic decisions, which points to the fact that people went to great lengths as a herd on their quest for more assets, without thinking about the ‘what ifs’. And as the world’s dance on the brink of economic collapse is paused, I believe it’s time to reshape the economic relationships towards improvement of quality of life, not remaking it in some novel fashion. And banks, as custodians of people’s wealth, should be the agents of this change, supporting a better living experience.
For this to happen, let’s imagine what could be done in several key areas where banks have great influence:
Security is paramount for the integrity of economic relationships (as well as other types of relationship), by accumulating the prime identity of users, banks might reuse this knowledge and provide third party ID authentication without actually exposing any of the data already collected, protecting people’s personal data and improving on the overall experience with other services that require this information.
Convenience is all about managing finances in as few steps as possible (such as clicks and moves). Banks need to learn and record people’s habits and offer mechanisms that would rid us of mundane checking, paying, and transferring, leaving as much time as possible to the life that we have.
Ubiquity is about opportunities to support customer whims in third-party services. In those areas where banks are not specialists, they should complement (or offer their infrastructure services) to other service providers, integrating the FS experience in the service (via API or in some other fashion).
Loyalty – making sense of people’s financial choices and improving them through auxiliary, connected services, not up-selling with financial products, but offering partner services that improves the living experience.
Most of these aspects are prime elements of a ‘bank as a platform’, reusing the tokens already known, improving the efficiency of these assets and contributing to a new level of quality. Just like in the old days.
– This article is reproduced with kind permission. Some minor changes have been made to reflect BankNXT style considerations. You can read the original article here.