Technology - a key driver behind the transformation of financial services industry
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- Technology has irreversibly been transforming the way we live and work and the pandemic has accelerated the pace of embracing digital transformation across all domains
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- Consumers now better understand the value of their personal data, and are willing to share them in exchange for a good product or fair retribution.
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- Financial providers have to make counter-intuitive strategic choices in response to these customer expectations in order to remain competitive and not lose critical market share to new, technologically innovative new entrants
CUSTOMER EXPECTATIONS ARE CHANGING
Through their use of digital services across other industries, consumer expectations have been remodeled – they now have an abundance of choice, an appetite for a more integrated experience and demand a personalized experience that is relevant for their individual situation.
Truly personalized services however can only be enabled by a rich data set. An Accenture Global Financial Services Consumer Study showed that more than three quarters of respondents are willing to share their data in order to gain the benefits from such personalized offers.
This marks a great shift for consumers that was hard to imagine 10-15 years ago – it opens up a world of opportunities. However, consumers also are likely to expect greater innovation in return for handing over their data. As a consequence, providers that are able to identify attractive data-driven services for different customer segments stand to gain a stronger competitive advantage.
This in turn also requires a mindset shift for financial services providers, who on the one hand need to consider creating strong incentives to encourage consumers to share their data and on the other hand need to invest or effectively collaborate with third-party providers in order to create an ecosystem that enables them to respond to these customer needs.
THE FINANCIAL INDUSTRY TRANSFORMATION IS GAINING SPEED
Banking as an industry has not changed to its core in centuries, since the principles that governed the way it operates have largely remained consistent and the entry barriers have always been very high for newcomers. It meant a less competitive environment than other industries, but this is no longer the case.
Technology has completely revolutionized every aspect of consumers’ lives over the last couple of decades and shaped new expectations of services that are being delivered. The 21st century customers are a very different ones and their expectations that have been molded by their experience with digital providers in other industries are transferring and exerting a transformative pressure to financial services providers as well.
This pressure does not act in isolation – technologies such as blockchain, robotic process automation, data-mining and artificial intelligence have unlocked new ways of segmenting, understanding customers and coming up with product propositions that reflect their specific needs and situation. Furthermore, technology and digitalization have cleared the way and lowered the entry barriers for new players which are rapidly gaining market share from established banking leaders.
22TRUST VENTURE
22Trust Venture is leading a real-world experiment – named 22Trust LEAP – to prove customers that they can indeed financially benefit from sharing their data, while also demonstrating to banks their customers are interested in such propositions. 22Trust LEAP will also help banks realize how much value they can unlock from proposing mutually beneficial services to their clients by catering specifically to the client's individual need for recognition. If you want to be one of the first who will enjoy our innovative app, you can register yourself on the 22Trust LEAP waiting list.
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