Are you satisfied with the way you have to interact with your bank? Didn’t think so.
Frankly for me, just thinking about my personal or business bank is like being dragged back to the 1970s.
As a consumer, you’d think it wasn’t worth even trying to do better.
And yet… according to McKinsey, “customers are seven times more likely to increase their deposits and twice as likely to open an additional account if they rate a bank as excellent (with a customer-satisfaction score of nine or ten out of ten) rather than average (six to eight out of ten).”
McKinsey have found that large organisations in general and banks in particular are focussed on cost-cutting, streamlining operations and cutting out customer pain points.
So what’s wrong with that you might ask.
The data shows however that the real benefits only kick-in once the end-to-end customer journey is looked at. Not only that, but from the customers standpoint.
Such an assessment needs to take into account both: 1) the importance to the customer each step of the way, and 2) how well the banks is doing – according to the customer.
They found however that the journeys (or journey steps) that are most important to the customer tend to be the the ones they were most disappointed by. For example, product use, problem resolution and on-boarding all scored badly.
Taking a customer-first approach leads to massive improvements in customer satisfaction rather than the typical incremental ‘meh’ responses.
As usual, the key to success is to apply the basic concept of starting and ending with the customer in mind. As usual, almost no-one does it. What will you do?
BE CAREFUL WHAT YOU WISH FOR
I’ve noticed a trend where old-school banks are trying to re-position themselves as ‘tech firms’. The irony is that in their desperation to avoid being left behind these organisations are increasing the risk of bringing about what they fear most. I recently wrote about why I believe they’re going wrong and what they should focus on instead.
GROWING WITH PURPOSE
What’s the purpose of your organisation or startup? If you think it’s profit or growth or the exit then think again. Vishal Vasishth argues that a company’s purpose comes first. Purpose is outward-facing, customer-oriented. He goes on to explain how there are 4 interconnected levers that support such a purpose: aligned culture, innovative product, social/environmental benefit, and profitable growth.
Tristan Handy walks us through how to create the analytics ‘competency’ your startup needs through each of its stages of development. As he says the technology is changing fast but this is a useful snapshot for early 2017.
UK STARTUP VC SCENE
Thomas Olszewski of Frontline Ventures walks us through what he claims is the “most comprehensive report ever created on startups and venture capital in the UK.” Highlights include: 1) London counts 8 funds with £1b+ in funds raised — versus 2 in Germany and 1 in the Nordics. 2) London has more than 2x the engineering talent of Paris or 4x that of Berlin. London even beats New York in terms of absolute number of developers. 3) The United Kingdom is unmatched in terms of £100m+ exits in quantity and diversity among sectors. There are £1b+ tech companies in eCommerce, fintech, gaming, travel, proptech, telecom, and enterprise software.
NEW FORMS OF FUNDING REQUIRED
Jonathan Drillings believes the time for smaller, more flexible forms of growth funding for software startups are urgently needed. The recent trend however has been in the opposite direction.
Brock Pierce is a VC who wants to overturn the way VC works. He firmly believes that that the future of funding is fast, flexible and fractional. There is a tried (and fairly well tested) mechanism called the Initial Coin Offering (ICO) which uses Blockchain technology. Brock wants to take this grey-hat approach above board and up to the next level.
OPEN BANKING & PSD2 EXPLAINED
Open Banking is around the corner yet few appear to have much of a clue what it means, let alone what the implications may be. Bob Lyddon gives a great explanation of what it’s all about.
CAN DESIGN THINKING SAVE FINANCIAL SERVICES?
“The banking sector is going through a period of disruption, but this not the end of the industry. Instead, this disruption marks the genesis of the banking sector’s new DNA: a combination of changes in business models, agile execution, and Design Thinking.” says DIETER STAIB, Partner at Oliver Wyman by way of introduction to a new report.
AI AT AMERICAN EXPRESS
Thomas H. Davenport and Randy Bean breakdown how American Express and P&G are approaching AI. Both companies have deep experience with data analytics and expert systems. Both of them are well into adopting and adapting so-called cognitive technology. Some insightful lessons here for established companies yet are new to the field of AI.
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