2 min readFor an industry fixed in traditional approaches and limited by regulations, banks are experiencing a serious challenge: how will it respond to the digital reality?
US and UK consumers appear ready to rate tech companies such as PayPal and Amazon equal to banks as agents for their money, and would consider buying financial products from them. Of the 65% of millennials who use mobile payments, more than 66% say Paypal’s Venmo is their go-to, according to a survey released from LendEDU. Not to mention that Amazon has generated $3 billion since 2012, when it launched its lending pilot.
In fact, as money becomes easier to lend between friends and in smaller transactions, many customers prefer digital channels to branch channels. They feel that the digital service provided by banks falls far short of expectations.
And though all of the top 30 financial institutions and most second- and third-tier banks are invested in digital transformation projects, they should be aware that disregarding the customer experience can be fatal.
As speculated by McKinsey, banks only have three to five years to go digital. After that, they’ll most likely fall in line with other laggards—and out of favor with the general public.
Learn more about how your bank can embrace digital experiences in our latest white paper, “What if Banks Go the Way of the Neighborhood Grocer?”
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