Bankers at Davos this year are focusing on Innovation. In the past year Financial Technology (FinTech) has disrupted the industry and many have accepted it while others are still processing the change.
Fintech Innovators are sharing their experiences at the World Economic Forum Annual Meeting 2017 in Davos.
Aside from Technology, Bitcoin and Blockchain many stated that trust is something that everyone should focus on and it was one of the most popular subjects. Here is the conclusion.
Who are FinTech Customers?
Young customers with new and innovative ways of banking are flocking to private Fintech companies. Instead of traditional banks they are turning to rising financial startups and entrusting them their money. Millennials have no problem investing in new brands as they are offering efficiency by cutting out the noise and presenting them with simple solutions for all their money problems. Money is safe on the card, accessible from mobile phones and the whole process is easier to track and easier to manage.
Older customers, or Boomers as they are often referred to, are not so eager to transition as they already have banks that they trust. Switching to new brands and investing their money is still not so appealing to them. Can startups assure them that rising financial systems are a better option and that their money is safe at all times?
Enhancing Customer Experience
Customer Experience has always been the top priority for banks as customers are always looking for better services and innovation, many banks are collaborating with FinTech companies in order to give their customers a modern banking experience. With FinTech, waiting in long lines is history and payments and transactions are done faster and more efficiently.
Many banks are happy to adapt to new technologies and are supporting innovation, debit cards and mobile phone apps. They are giving their customers a possibility to access their money 24/7 and maintain a safe and efficient payment system.
Positive customer experience leads to customer satisfaction, loyalty and great customer lifetime value and with that in mind, banks are working on accepting the innovation and giving their customers the best possible service.
How to innovate and succeed?
Traditional banks and startups need to create and maintain a trusted wire with people behind it while offering their customers total control of their money, access at any time and easy management. The best way to succeed is to form a foundation of trust. This foundation is built on security, privacy and great service. They need to provide value for customers and to protect them.
Millennials are born at the time of technology, and while sharing with their friends and commenting on transactions within an app is normal to them, older generations are yet to accept this. Boomers need to gain trust in tech companies. Even though some of the tech companies are the most trusted brands in the world, that public/private boundary is still strong for older customers and startups are looking to find a way to overcome this barrier.
One is certain, a need for a basic system and platform for financial transaction has been created and banks and startups are working on offering the best possible solution. Banks do not need to drift away from the system they have been working on until now, however, they have to reinvent themselves in a mobile world following their experiences.
A question remains, how to build financial services to serve the majority of people, to be a solution for boomers, millennials and the generations to come?
Manigo Team, January 2017