The evolution of financial services is moving toward a digital strategy for customer engagement, transactions and customer services. There is a growing pressure for financial institutions to enhance their mobile capabilities as consumers increasingly adopt mobile banking and payments. When it comes to payments, I’m sure many of us are already experiencing the convenience of scanning our phone at the register to pay for our Starbucks instead of digging for cash or using our credit card.We can easily reload our mobile wallet and actually get rewarded for our purchases, it’s a win-win. Consumers want this type of convenience and instantaneous access to their financials. A strong mobility strategy can open the door to new opportunities and ways of doing business for financial institutions.
Mobile Drives the Need for Immediacy
The types of mobile services offered by financial institutions will continue to evolve with technology as growing pressure for banks rise from non-bank services and competitors and we will start to see an integration of mobile banking and mobile payments. Mobile drives the need for immediacy, enhancing mobile interaction and offering consumers a better experience through mobile apps and services. It can also allow a financial institutions to better engage with consumers and increase customer intimacy and loyalty. Financial institutions can quickly lose control over their customers as emerging payments options gain traction. It is critical for financial institutions to implement a mobile strategy to integrate and enable these types of innovative new services for their customers.
Innovations in the industry will ultimately reduce the use of cash and make payments less visible to payers. Some 30% of millennials and 35% of mass affluents are “extremely interested” in initiating payments using wearables or smart devices, according to an Accenture 2016 Survey. We are seeing a greater increase in consumers making purchases on their mobile phones, 13% over the last year and the numbers are growing. So what’s the role of the bank? Banks need to reevaluate their role, how can they work with new entrants and how can they leverage the mass amounts of data they already have to drive customer engagement. Examples of this would be allowing customers to link their bank accounts for direct payments, improving the convenience of banking services and focusing on the customer experience with loyalty programs. Winning is leveraging their data to gain visibility into spending patterns to build a more holistic understanding of their customers and engaging customers on their terms.
The Opportunity in the Channel
As a reseller, you need to ask yourself how can you take a more holistic approach to the data center as you consider the financial intuitions needs and opportunities arising from mobility. Being informed about industry imperatives will better arm you to discuss strategic opportunities to support a financial institution’s digital strategy such as data management and security, analytics and artificial intelligence, application development and delivery models to that drive and support personalized customer engagement. With evolution comes change and the financial institutions that are willing to collaborate and invest in innovation will come out on top.
Tech Data has capabilities and dedicated teams focused on both the financial services market and the mobility space to help partners effectively engage with customers. If you are interested in learning more, contact your sales representative or email us.