What does the future of retail banking look like in a period of tremendous economic uncertainty?
COVID-19 has had a huge impact in the future of retail banking.
Traditional banks find it hard to adapt quickly. For years banks have been trying to reposition themselves for better distribution.
Essentially what this means is branch transformation. The consolidation and closing of branches in order to cut expenses and become more digital.
These days people bank on their phones so there’s really very little need for physically branches.
Consumers have been calling for the digital transformation of the banking industry for years. The simple truth is they’re just not geared for quick transformation, this is where FinTech’s have an advantage and can potentially bridge the gap for business.
Some banks have attempted to introduce digital products to reduce administration and improve efficiency but its clear that things are not quite as digital as they appear to be on the surface. This is becoming increasingly apparent as banks struggle to deal with customers during the lockdown period. Banks need people and until they can figure out how to process things without people, they will never be able to compete with fast, flexible FinTech business.
Fintech businesses can offer businesses transparency with no hidden fees or surprise charges. Businesses can manage their money remotely in a safe environment and with full control of the process.
Banks need to get their digital transformation acts together and focus more broadly on the customers experience.
What’s clear is post Covid-19, things are going to get even tougher. The world as we know it has changed. Banks need to upgrade their technology in order to stay current. Its time. Banks need to move forward on a digital basis and become nimbler to hold onto market share.
The quickest way to do this is to start working with Fintech businesses. Non-traditional Solution providers who have the ability to bring their services and products to market quickly & conveniently. These types of collaborations will reduce transformation costs, technology investment and time to market and allow banks to better service customers.
