Seven Ways to Give Consumers the Digital Service They’re Seeking

Cisco surveyed 7200 people in 12 countries and released their findings in “The Internet of Everything for Financial Services" earlier this monthHere’s the bad news - financial institutions are not giving consumers what they want in the digital realm. In fact, 65% of consumers said they would switch FIs for a more personalized “Internet of Everything” experience.  

The good news is there is enormous potential for improvement, and banks and credit unions that get there first by implementing digital enhancements, upgrades, and innovations will gain competitive advantage.  

How does the IoE influence consumers’ behavior? 

Cisco describes the Internet of Everything (IoE) as “the networked connection of people, data, process and things. The IoE is made up of many technology transitions, including the Internet of Things.” As you may suspect, the IoE is growing, and transactions are becoming increasingly digital. Research from Deloitte Digital shows that by the end of December 2014, half of all retail spending will be “influenced by digital interactions. Deloitte’s research shows that 69% of people check the web before they go to stores; 36% reference the web on their smartphones while in shores; and 14% use the web after they make a purchase. Deloitte estimates that shoppers using smartphones to assist their shopping experience in stores make purchases at a rate 40% greater than consumers who do not use those devices in stores. 

What does the IoE have to do with banking? 

As consumers rely on the internet more and more to spend their money, they also expect to do the same when they want to save, invest, and manage that money. Of survey participants, Cisco found that 

  • 43% believe that their bank "does not know them and consequently cannot deliver personalized service." 

  • 31% believe that their bank "is not helping them reach their biggest financial goals and consequently will look to alternative banking relationships." 

  • 50% of Gen-Y, 42% of Gen X-ers , and 36% of boomers said their "bank does not know individual needs.” 

  • 65% would switch financial institutions for personalized Internet of Everything–enabled services. 

What can banks and credit unions do to make digital improvements? 

  1. Make sure customer service people are available when customers need them – this may mean that you provide in-person advisors at your branch, or you provide them online via chat or video.  

  1. Enable video collaboration and advising tools – allow your customers to talk with financial experts (in lending, wealth management, mortgages, investing, etc.) via virtual face-to-face meetings.  

  1. Empower employees to “bring their own devices” to work, and also to work remotely. Implement a virtual work environment, so they can work from anywhere and advise customers from anywhere.  

  1. Provide self-serve resources to customers – like online videos that answer their pressing questions.  

  1. Implement and improve your mobile payment services. Consider how your card will work with a mobile wallet. 

  1. Offer a mobile discount program to customers where they receive location-based deals and perks from local merchants in context, while they are shopping. With smartphone alerts branded with your FIs logo, they’ll be reminded how you are helping them save money each day.  

  1. Ask your customers what they want, and dream up wild ideas! Maybe your customers would like to pay their bills through your website. They might like to donate to local nonprofits through your website. Heck, they might want to use Google Glass to see videos that teach them about investing, or make payments with their watch.  

Larger financial institutions are already doing all they can get ahead in innovation. That’s why Capital One stole Google’s top tech designer – so they could implement forward-thinking features into its online banking platform and mobile app. The race is on! What will your FI do to keep up? 

Learn more how Larky can help your credit union or bank get behind your community. Ask for a free, no-obligation demo today.

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Larky is a mobile loyalty platform branded for your financial institution that drives retention, acquisition, wallet share, and interchange revenue. To learn more, visit Larky.com or email us at hello@larky.com.


Posted on December 04, 2014 by AndrewB - No Comments

Topics: Financial Institutions, Mobile