I recently outlined the risk of banks losing relevance to their customers, and how they might mitigate the threat.
If they're not relevant they risk being disintermediated by waves of new competitors who will cherry pick them out of existence.
If they want to survive, they need to reinvent themselves.
Below are four ways where they could rethink their role as a custodian of their customer’s assets, solve problems and offer more relevant solutions:
help customers maximise the value of their data – “data is the new cash”, by helping them securely store and use all of their personal data;
solve the intergenerational asset gap – help families share the value their wealth now for the benefit of younger generations;
align to the way that consumers now financing purchases by offering ‘buy now, pay later, via their merchant customers, rather than through a credit card;
work with employers, particularly in the gig economy, to help customers better manage their finances by accessing earned salary early and providing a cushion against unexpected expenses.
This means replacing long-cherished products with new ones that better meet the needs of the 21st Century post Covid-19 consumer.
By retaining the customer relationship, they will continue to create sustainable value.
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