In the early days of the internet revolution, businesses openly had the debate whether or not to have a web-page. In a short amount of time to our thinking today they may as well have been debating whether to shutter the business or not. We stand at a fork in the road again for financial organizations. As the article outlines, the technological innovations being brought to bear in financial institutions necessitates the reshaping of their business model.
Becoming a digital bank can transform a traditional banking organization from being a reactive product provider to being a proactive financial advisor. By developing a digital stack that operates in real-time, with the contextual engagement and the interests of the customer placed at the forefront, financial organizations can combine home grown services with those offered by outside organizations. By definition, digital banks will be more agile and instantly responsive, increasing revenue opportunities and decreasing costs.
Mercator Advisory Group is closely following this fundamental change in taking place that has certainly reached what may be characterized as a pivot point for banking service providers. Delivering value-add as a fiduciary partner will be the role many consumers expect, and delivering a seamless and trusted engagement with personalized recommendations and goal recognition. We believe financial institutions gearing themselves for the next generation of service delivery are actively investing in understanding their consumers, and embroidering their networks with value-add partners that have been vetted and integrated to their own central service delivery methods. Just as a museum has its core collection of patron favorites augmented by timely special collections, so will the digital bank curate its core applications with a complementary wider collection of authenticated seamlessly integrated apps that deliver solutions to an individual’s specific need and create the optimal experience.
Overview by Joseph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group
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