Attracting and retaining loyal customers through digital channels involves moving beyond traditional product and transaction-based thinking. It requires the ability to generate contextual, personalized offers based on customer data and then delivering that information in as close to real-time as possible. This information should also be communicated in a manner consistent with the company’s brand.
Financial institutions were forced to adopt remote and hybrid working arrangements during the pandemic. Going forward, keeping those options available may be key to a company’s ability to attract and retain quality employees. This is particularly true for smaller banks and credit unions.
Valora is a pioneer in the emerging area of crypto-P2P payments. Their wallet allows the transfer of funds in a variety of cryptocurrencies by just entering the recipient’s phone number. This low-fee approach to transferring money outside of existing payments rails may have application in both developed and emerging economies.
Small businesses are relying more and more on banking through digital channels, and are expecting innovative features and a superior user experience. This plays to the strengths of Fintechs which continue to make inroads with these customers. One approach traditional financial institutions might consider is to become an ‘ecosystem facilitator’. This involves combining small business applications such as payroll, operating accounts, invoicing, treasury management, etc., and making them available in one place along with personalized insights and product recommendations.
Generation Alpha is the next marketing cohort that will be entering the scene behind Gen Z. Composed of people born after 2010, they will have their own set of interests and needs that have yet to come into clear focus. One thing that seems likely though is that the ability to deliver personalized experiences to this group will be of high importance, just as it is with older generations.
Apple continued its expansion into the financial services arena this week through the purchase of a UK open banking startup that helps lenders make better credit decisions. This suggests that Apple may be looking into offering or facilitating credit-related services in either the UK or perhaps the US. This may even be related to their rumored BNPL product ‘Apple Pay Later’.
