We could list every process or strategy change financial institutions, fintechs or payment providers made last year, but one, we’d be here forever, and two, no one would make it past the first page. So, while we won’t inflict that on you right now, it would show one thing: the true scale of the agility needed to succeed in a digital-first world. It won’t come as a surprise to anyone that digital-centric transactions are the new norm, and increased consumer choice is putting customer loyalty to the test. But organizations should not lose sight of the human experience in the rush to go digital. Making the customer delighted and optimizing risk decisioning can go hand in hand. One doesn’t come at the expense of the other. It’s time to embrace a world where risk decisioning agility and world class customer experiences are must haves, expanding your businesses universe means succeeding at both. According to McKinsey’s December 2020 article on shifting customer attitudes, 42% of US financial decision makers use at least one fintech and more than 6% reported becoming a fintech user within the last 12 months. 1 This study went on to say that payment, investments, lending,
and overall banking have grown across all age groups and income brackets. With this level of competition in the industry, it is hard to determine who the challenger is. Every player in the industry must be focused on the right investments to deliver value to both the customer and the organization. And Jim Marous of The Financial Brand agrees, “banks and credit unions needed to review their entire business model, from products offered to back-office processes that had been in place for decades. With an industry and economy still in a state of flux, organizations need to find ways to serve consumers faster, with less friction, and at a lower cost. More than ever, there will be a focus on data and analytics, modern technology and the ability to deliver an improved customer experience.” 2 The one thing we know for sure is that there is a sense of urgency and digitally native fintechs have an opportunity to influence the direction. The formation of powerful partnerships between financial services organizations, with growing customer bases, and fintechs, who offer sophisticated data, analytics and the decisioning capabilities necessary for retention and gaining market advantage, can define a new industry benchmark. Placing a bet on the right solution is key.
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