The Future of Retail Banking as seen by Millennials – Workshop Observations
Over the last four weeks we have explored the setup and output from the The Future of Retail Banking based on our Design Thinking session with a group of millennials. This week, we will complete the journey by presenting the combined results around the different ideas. We will also add some observations and thoughts from the days. Please have a look at the infographics outlining key points and findings.
If you missed any of the previous post that walked through the different teams outcome, then please see links at the bottom of this post.
What did we find that was common across all the groups?
Personalisation for the good of the customer. The strong feeling was that the banks should know more, much more about the individual, family units or small businesses to offer a HIGHLY tailored experience. Bringing all of their services under one place and making sure that all interactions and transactions are used to the benefit of the customer. Omnichannels, including branches, was the only viable platform to deliver this experience, and large amounts of data analysing, profiling and personalisation are the future of consumer banking.
The consensus was that this would drive more business into one bank, where knowledge and proactive interactions would build lasting relationships and create a differentiator towards the “half banks” such as retailers and online players. It is almost like going back to where banks were say 50 years ago in their interactions with the customers, but now with a new service mind, ethical goals and technology platforms to enable collaborative banking in a multitude of interaction points.
The strong online presence was no surprise, heavily focused on mobile banking. What was clear and new was the wish to have real-time analytics on individual behaviour, to ensure that the bank could support individual goals today and tomorrow’s goals around life planning and pensions. Banks should be able to almost predict spending behaviours and proactively support individuals when their patterns change and make sure people engage more in their financial situation. This should be face to face in a coffee shop, branch with a difference, but could also be through technology, such as webcams. Access to a real person, who knows the individual and supports their needs is still needed in the future, if not more so for all parties.
Barriers to entry have shifted…
Setting aside the need for banking licenses in most countries around the world, the barriers to entry for disruptors has changed. New entrants and disruptors to the market with new ideas (not necessarily a bank yet…) such as eBay, Apple Pay and food retailers offering everything from payment management, bank accounts to insurances and mortgages. Some of these have the capital, vision and technology to dramatically change the industry if the decide to do so.
This is not good news for the incumbent banks that are often struggling with…
• No consistent interface to their customers
Metro bank is in many ways a case in hand – fast growing with a focus on its omni-channel and a different branch experience (to be honest, not as different as the millennials would like it to be).
Looking at the expectations, there is a huge potential for upcoming consumer banks to start fresh and enable a completely new and innovative ways of banking. May it be in a coffee shop, Financial Super Store or purely online for their customers at a lower operating cost and higher customer satisfaction. In the end, the consumer power is here and is not going away. The question is how the institutes will address this and stay relevant in the future as well.
AND we will live in a cash-less society by then!
The consumer needs help and support from their bank to manage an increasingly complex tomorrow, with less resources, pensions at risk and other challenges that might be around the corner. Banking of ONE is coming to a place near you. The question is not if, but whom and when it will be available to you…
Last but not least
A huge thank you to the fantastic and insightful participants and to my co-facilitators. It was a great experience and some interesting insights into a new generations mind. To refresh your memory around their work, then please have a look at the individual blog posts below.
The superb participants & facilitators
- Chloe Davidson
- Alexander Yeoman
- Hannah Borkett
- Trent Cannar
- Alexander Erikson
- Luke Gorman
- Emanuela Escalante
- Zoe Leech-Leeson
- Gabriela Todorova
- Emma Safras
- Anish Kundi
- Sian Lynch
- Chloe Darlison
- Andy Lawrence
- Lloyd Andrews
- Bojidar Mantarov
And a thank you to all you readers that have followed this series over the last five weeks.