Bankers Tell Me Their Top Industry Game Changers
This should not be surprising to anyone. Neo banks are investing and moving quickly into creating a banking experience not based on personal relationships or locational convenience. Moven, a banking application that was seeded with $4-5 million, and subsequently raised $8 million more last summer, aspires to remake banking through the smart phone. They see their IT department as a profit center.
In 2013, I wrote a blog post on a job description for an EVP of Distribution and Service Excellence. Not that I’ve experienced such a position, but that does not mean it should not exist. Readers of my blog know I like to dabble in how things should be, rather than how they are. Two years and I still haven’t seen this position.
There should be no more debate that customers interact with your bank more frequently with technology than any other distribution point. That ship has sailed. It is not only how it is, but I believe it is how customers prefer it. As a society, we are becoming increasingly accustomed to self service, and by our actions deem it more desirable to get a task done on our own time rather than wait for another human being to help us. There are exceptions of course, but in the main, don’t you agree?
If you do, then here are some ideas on what to do next:
– Build a technology platform with the right partners that makes our customers’ lives simpler that has a distinctive look and feel, even though we are likely to use the same platform that hundreds of other financial institutions use.
– Create a separate profit center for your online/mobile banking center. That means you have a center manager that is responsible for growing customers and balances, and generating profits via your technology platform.
– Implement a rational costing scheme to charge branches for their customers use of the mobile/online banking platform, and for your mobile/online center customers’ use of branches. Keep it simple and understandable.
– At the top of the Mobile/Online Banking Center, put an executive with customer acquisition and customer experience know-how. Not a former FORTRAN programmer that wears a pocket-protector that is more comfortable discussing circuits and switches than how to acquire more customers.
Do you think the time to treat our mobile/online banking centers as support centers should end?