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New players in the space go further to understand psychographics to create a truly holistic profile beyond explicit information. These new entrants can ultimately create more responsive and tailor-made experiences by utilizing information like customer login frequency, social graph data, and mobile vs. web use. Through this, they can simplify the investment process, provide feedback to a broad base of consumers in various life stages and mimic the customer experience of a seasoned and more expensive financial advisor.

Earn the trust of your consumers Over time, confidence in banks and financial advisors has eroded. According to Nielsen Report, Millennial consumers, especially, want a transparent and authentic relationship with their financial institutions. Because of this, many financial institutions are faced with reevaluating the way they offer products and services to a new generation of digitally native consumers. Smart financial institutions are building trust through increased transparency, re-aligning products and direct education. In order to build relationships, earn greater trust and reap the advantages of consumer loyalty, financial institutions will have to successfully leverage innovation, balance their needs and safeguard their wealth.

Companies can do so by giving consumers an easy way to understand how their money is working for them. Education and transparency will help them feel like they’re

in the driver’s seat. With the diminishing patience of digital consumers, any process or privacy concerns that are overly complicated will likely turn them off and lead them to choose a different service. Financial institutions that come out on top will shift the messaging model around simplicity and transparency, not assets under management or years in business. Owning consumers’ trust can be acquired by large institutions and newcomers alike. It can be achieved by putting customers first — in the ways departments are structured, employees are incentivized, and capital investments are made.

Invest in partnerships or look for acquisitions instead of building in-house

For many financial service institutions, the concerns of organizational leadership are typically far-removed from the consumer. Ask a CEO at a bank or financial institution what success means to them. They’ll likely be more concerned with managing risk, liquidity and return on investments for shareholders. Critical, yes; but it's rare to hear success that’s tied to excellence in digital marketing, innovation, analytics or understanding the customer journey. As technology continues to change the customer experience, financial organizations should look outside their organizations to help shift greater focus to a digital solution that meets the needs of the end user.

For those financial services institutions where consumers and digital are an afterthought, find a partner that understands how to marry financial services, especially the regulatory aspects, with an overarching digital strategy. A solid partner should be thinking about the customer relationship and full customer lifecycle rather than a single transaction.


Financial services organizations that ultimately succeed in navigating disruptive innovations show an ability to effectively leverage data and digital touchpoints to drive growth and reduce costs. Further, real-time content management and partnerships with agile companies will help bring products or services to market faster and create exceptional customer experiences. Finally, and arguably most importantly, the institutions that will rise above are the ones that put their consumers first.

Alex Lirtsman Founding Partner and Chief Strategist Ready Set Rocket

Issue 3


Profile for Global Banking & Finance Review

Global Banking & Finance Review - Business and Financial Magazine  

Global Banking & Finance Review is a leading financial portal and Print Magazine offering News, Analysis, Opinion, Reviews, Interviews & Vid...

Global Banking & Finance Review - Business and Financial Magazine  

Global Banking & Finance Review is a leading financial portal and Print Magazine offering News, Analysis, Opinion, Reviews, Interviews & Vid...