Victor Milligan of Forrester Research recently published an article on the opportunities and threats facing banks today. As an advisor to CMOs, Milligan identifies trends in consumer behaviour and has identified a need for banks to invest in digital strategies.
'Our Empowered Customer research reveals that 40% of consumers (Progressive Pioneers and Savvy Seekers) have a high willingness and ability to shift spend based on a poor experience.' - Victor Milligan
Customers respond quickly to bad experiences with their bank, and as a result, they will be abrupt to change services without blinking an eye. The time to digitally transform, Victor Milligan states, is today. Banks have a large amount of data at their disposal, and when used correctly, they can leverage it to deliver personalized experiences for their customer base.
Banks are investing heavily in unlocking their systems of record to take advantage of rich customer data. The shift has begun, and with billions of dollars being unloaded into this process, some banks will prosper, and some will ultimately fall behind.
Digital distribution will be at the centre of how banks will deliver this value. By harnessing data, they will be able to build personalized content and distribute it to the end user. In addition, they will be able to showcase collective insights at a grand scale to position themselves as thought leaders in the industry.
Through digital transformation, a bank can leverage data, build valuable content, and distribute it to the people that matter.
If banks can allow their data to add value for the customer, they will see a large increase in retention.
'Technology can help banks address these threats to reshape and rebuild relationships with customers and create sustainable growth. ' - Victor Milligan
Read Milligan's full article here:
The Threat (And Opportunities) Facing Banks Today
Banks serve as the bedrock of the economy, and that bedrock is changing. These changes represent a direct attack against the current banking business model and associated P&Ls. Our Empowered Customer and North America Consumer Technographics data tells us: