Bringing Financial Services Out of the Stone Age
The financial services industry is one of the most heavily affected by digital transformation. With such strict regulatory and security standards to adhere to, it’s no surprise that going digital has been a challenge.
But just because digital transformation is difficult doesn’t mean banks and other financial institutions can sit idly.
Since 2007, Finovate has been hosting its series of events to keep financial services firms on top of the latest technology. This year, we’re joining the effort with our own presentation about how the finance industry can create mobile, personalized, interactive, and at-the-moment customer experiences.
If you couldn’t make it to FinovateSpring this year, you can still learn about getting ahead of digital transformation demands with a messaging experience built to delight customers.
A Fork in the Road for Financial Services
Maintaining the status quo might seem like the safe approach for any incumbent bank or financial services firm—but even the most established brands must resist this urge.
If there’s one thing to take away from FinovateSpring, it’s that new technology like person-to-person lending, blockchain, mobile, and more aren’t fads—they’re becoming the new norm.
Research from McKinsey & Company found that the next 3 to 5 years will represent a fork in the road for incumbent financial services companies looking at digital transformation.
Taking the “wait and see” approach to digital customer experiences will open incumbents up to see 35% of their net profits erode. Whether these profits are lost to competitor innovation, margin compression, or increased operational risk, it’s unlikely anyone would see this as the ideal path.
Banks and financial services firms that embrace can boost inflow revenue by 45%. Three major opportunities when digitizing include:
- Increasing revenue with new offers and business models native to mobile and other digital channels
- Offering new products and creating distinct digital sales processes that use data to cross-sell
- Leveraging automation and transaction migration to lower operational costs and increase margins
One reason incumbent banks have been hesitant with digital technology is this perception that only millennials are resisting traditional channels. However, more than 50% of Gen X-ers and Baby Boomers prefer digital channels for multiple phases of the loan process.
When you root your digital transformation efforts in mobile messaging, you can take advantage of these digital transformation opportunities and drive loyalty with valuable customer conversations.
Messaging—The New Digital Focal Point for Financial Communication
Consumer communication has evolved far beyond how conversations work in traditional financial services. Face-to-face communication is great—but it’s like living in the Stone Age at this point.
Phone calls and emails have their place as well, but messaging is the preferred channel for modern communication (even with businesses).
With a branded messaging experience, you can have frictionless conversations with customers (and prospects) throughout the entire buying process:
- Digital loan and account application with a mix of chatbots and human interaction when necessary.
- Allow customers to make policy modifications and claims reports without dealing with the traditional headaches.
- Provide push notifications and immediate messages regarding fraud detection so customers are always informed.
Building a digital customer experience that drives business requires differentiation, personalization, and a mobile-first mentality. Building your own messaging is the best way to accomplish all three.
Branded Messaging Is More Accessible Than You Think
Time is of the essence when it comes to digital transformation. Every month that passes is a new opportunity for your competitors and emerging digital natives to claim more market share.
It’s one thing to talk about releasing a core messaging experience and quite another to actually build one—but that’s why we presented at FinovateSpring this year.
With the Layer customer conversation platform, you can cut out the months of infrastructure development that seem so daunting when starting down the digital transformation path. Build your user interface on top of a platform tailored for the financial services industry (and all of its compliance challenges) and start taking advantage of digital customer conversations in days.
If you want to learn more about how a branded messaging experience can help you succeed with digital transformation, contact us today for a free demo of the Layer platform.