Due to innovations in banking (Banking as a Service) and digital technology, customers are not ready to stand in queues for banking services or wait for months before a credit officer or relationship manager decides whether they will be granted an audience. If you cannot serve your customer in the next 5 minutes, you have lost the customer.
There are three specific areas where we can cost effectively deliver immediate and pervasive competitiveness:
Loan Origination and Servicing: Stop Losing Ground in your Communities
Credit markets have experienced significant disruption consequent to the rise of online intermediaries and financial technology (fintech) companies. A key feature of fintech companies is the substitution of algorithms and AI Decisioning for in-person interaction between lender and borrower. Their online presence has enabled these new companies to cut costs and acquire significant market share across lending products. In fact, these Fintech’s have taken over 25% of your market but it doesn’t have to be that way.
Marketing: Personalized Local Marketing for Your Bank and Your Bank Employees is not that Hard
Doing business in today’s highly competitive digital-first world is challenging for many smaller brick-and-mortar banks and credit unions. PwC’s Consumer Digital Banking Survey’s paint a grim picture for “branch” focused banking.
To transform your retail branch channel, it is important to redesign from the perspective of
micro-market customer segmentation in an area, instead of a point-to-point perspective on each branch. Also, retail branch channel is critical in developing sales channel strategy that incorporates retail branches and the Internet Bank
through smartphones and mobile devices.
Step One: Improve your bank User Experience (UX) and allow the customer to choose their path. In short, view your bank as an e-commerce company. Unsurprisingly, the majority of consumers now prefer to apply for loans online, the preference for online interactions has jumped considerably (about 30%) in recent years and is not slowing. While some segments still prefer human interactions for certain parts of the process, a viable digital process is now a must-have for banks and credit unions wishing to compete across all consumer segments and demographics.
Step Two: Leverage available Fintech point providers to complete 100% of the application process online and generate a nearly complete underwriting file according to your credit policy’s in the digitally.
Step Three: Diversify your marketing based on generational preference. Use the channels and user experiences (UX) preferred by each generation. Expand your offering to focus on potential e-commerce clients, software companies and healthcare. We even suggest partnering with employers to offer ~$1000 loans to help local businesses and their employees to avoid preparatory lending interest rates often found online.
Step Four: Service your clients through text, email and digital channels so that your bank and credit union can thrive operational expense headwinds created by the current labor market.