Sponsored: Great expectations
To meet the new expectations of customers, banks must move from their traditional product-focused mindset and rethink their existing platforms. AB+F spoke with the Banking team at DXC Technology about providing an integrated approach to meeting their needs.
Traditionally banking has focused on selling products. A mortgage would be sold to buy a house, a personal loan to buy a car. However, DXC Technology’s banking leader for Australia and New Zealand, Kevin Jury (pictured) believes customer expectations have evolved. It’s no longer about getting a mortgage, it’s about buying a home or now even a lifestyle.
“Today it is about selling products but banking needs to offer solutions that put the customer at the heart of its business. Banks need to shift from a product-focused mindset if they are to move into the twenty first century,” Jury said.
Businesses like Uber and Airbnb have not only significantly altered the business landscape but have markedly shifted consumer expectations. Frictionless payments and greater control over choices are now what consumers demand from businesses.
“It becomes less about the bank and more about who wants to own the customer,” DXC’s banking CTO, Fay Flevaras (pictured) said. “Banks will have to consider how they play in that customer journey, after all the Googles and Amazons of this world are happy to own the customer experience.”
Flevaras also notes that the push towards more open data and APIs will mean that customers will only take greater ownership of their experience. Echoing Jury’s views, this will drive banks to deliver a more holistic service to their customer. “Banks need to tear down the walls if they are to help the customer.”
Redefining wealth management
An obvious impact on banking has been the emergence of fintechs. DXC’s offering solution specialist Andrew Slapp, argues that these businesses do not have the legacy, making them more agile to deliver on the customer experience. They will also be key in helping banks shift to a consumer-focused mindset.
“Banks have the brand that consumers trust. Aligning with businesses like fintechs who have already developed innovative solutions will position banks to succeed in delivering on the customer experience,” Slapp said.
Jury highlights the recent moves by a number of the big banks to offload or redefine their wealth management businesses as an opportunity for the sector to proactively meet the expectations of their customers. “Banks have traditionally delivered a bespoke all encompassing personal experience to their high-net-worth clients. By integrating their high-net-worth business and mindsets into retail banking, they can look to deliver this broader experience but now to a mass-affluent market,” Jury said.
For Jury this means providing a service that meets customer requirements during their lifestages. For example, addressing their insurance needs as their families grow.
So how can banks effectively re-engineer their businesses to meet the evolving needs of their customers? According to Jury it will be about revamping the business and technology landscape to deliver a standardised fabric that facilitates the plug and play of both internal and external capabilities. This is particularly imperative as banks have to cut costs as well as at the same time invest in projects that deliver on innovation. Partnerships with technology firms and as noted earlier with fintechs, will ensure that banks can introduce new capabilities like guided selling, dynamic pricing, personalized data storage or even bundled offers.
In an earlier DXC column, Flevaras described these platforms as being like an iTunes platform for banks. It may seem like a massive investment for the banks to undertake, but businesses like DXC have expertise to help banks deliver on this strategy.
“Banks tend to be in the business of doing a lot of things themselves such as building and running their own technology. With technology moving at such a rapid pace the whole operating model needs to be reconsidered.
Buying in business capabilities such as credit decisioning or application platforms can help banks free up their time and stop building product centric solutions and instead assemble customer experiences,” Flevaras said.
Slapp adds that banks also now need a single view of the customer; however, existing infrastructure poses organisational challenges. “By adopting a platform framework, retail and business divisions can access a range of capabilities from one system while addressing the needs that customers now demand.”
According to Jury, partnerships are essential to deliver platforms that are flexible and customer-centric. “We are not saying that we want to change the world. What we can do is help banks bring together business processes and technologies – in and out of the bank - to create a system that allows banks to plug-in or plug out their capabilities that will really help them deliver an end-to-end solution for the customer.”