Bank customers increasingly want services on their mobile phones, says the 2018 World Retail Banking report.
The reporte further shows that other disruptive changes occasioned by competition from non-financial services and new technologies have raised customer expectations.
“Today’s customers seek on-demand service and expect banks to both anticipate and address their needs with precision and expertise at every touchpoint,” states the report.
It says enlightened and empowered by other service experiences, customers assume that their bank will understand their individual needs and will proactively customise product offers based on their history.
As customer focused financial service entrants become more popular in markets, they also pose a threat of the wallet share to traditional banking services, which may compromise customer relationships and perpetuate the perception that banks are merely utility providers.
The report gives credence to the increasing power of social media platforms where customers go to vent their frustrations with a service or product, and for banking it is no different. With the increasing reach and power of social media and other platforms, customers often publicly voice their opinion, which can tarnish a firm’s brand and reputation.
Another challenge for traditional banking is the increased use of digital and comparatively simple payments’ regulations which make it easy for newcomers to tout their innovative offerings and grab payments’ market share.
It says that these new players have made inroads in origination, acceptance and capture, security, cross-border, and value-added services. While banking executives believe loans, mortgages, and wealth management services are not as competitively vulnerable, the rise of and increased customer acceptance of non-banking players may push traditional banks to rethink.