Improving customer experience: The top objective for financial innovation | Bank Innovation | Bank Innovation

Improving customer experience: The top objective for financial innovation

Enterprise-wide innovation is required to compete with the likes of Apple, PayPal, Quicken Loans, Monzo, and even the likes of companies like Amazon, Facebook, and Walmart, as well as other digital disruptors whose presence is seeping into virtually every industry. The urgency to respond to customer demands is getting board-level attention. IDC estimates that globally the banking industry is spending almost $120 billion annually to provide better omnichannel and payment customer experiences. The financial implications are imperative as market share slips quickly between companies during times of disruption.

Innovators in all financial sectors are taking share from their competition with ingenious operating models that achieve astounding results. The cloud is helping to leverage these operating models to transform even further. From a recent IDC survey, 66.8% of global bank executives identified that they are using the cloud to develop innovative new cloud-native apps for external facing interactions and customer experiences, which exceeds the 54.2% of other industry executives who have turned to the cloud. Source: COVID-19 Impact on Spending Survey (Survey conducted during 21st May to 28th May period), IDC, May 2020

To capitalize on their best opportunities to delight customers and provide next best actions, enterprise leaders must break down back-office and front-office barriers to ensure a new agile operating model where fluid, real-time, smart, customer-centric processes can be assembled and disassembled with alacrity. Speedy, accurate response is often the difference between disappointment and delight. IDC predicts that by 2024, 60% of capital investment typically earmarked for operational efficiency will shift to investment in operational responsiveness to the market for services and customization.

Financial sector innovators are gaining share with operating models that achieve astounding results. A consumer bank grew credit card payments by 50% in value by offering mobile ability throughout the full customer financial journey.

This analyst paper takes an in-depth look at innovative models that use new technology solutions, data, and artificial intelligence (AI) capabilities that result in:

  • Decreased customer acquisition costs.
  • Faster response to new opportunities.
  • Faster time to market for new services.