Most banks lack the management leadership and operating disciplines needed to execute successfully on a digital transformation strategy (assuming they even have one in the first place). To be successful someone needs to have the role of Digital Officer. The responsibilities of this position include translating the bank’s strategy into a meaningful digital road map that identifies the prioritization, sequencing, and dependencies of key initiatives. They also are the evangelist for new digital capabilities and lead company-wide change management efforts to create the desired customer experiences.
Apple’s wallet pricing practices are coming under fire. A small Iowa-based credit union is seeking class-action status for a lawsuit filed in California over Apple’s transaction pricing and the exclusion from iOS of wallet products from other companies. The European Union has also initiated proceedings against Apple. Companies joining the suit could risk backlash from customers who have become accustomed to the convenience of Apple Pay.
Women’s financial needs differ from those of men, and banks would be well-advised to take note of this. Some of the key differences include limited support for their obligations to care for others, income disparities, burdensome debt, and insufficient retirement savings. Many women don’t feel they have the access they would like to financial advice they can trust. Financial institutions can proactively respond by providing better financial education targeting the needs of women, along with offering better support for female entrepreneurs seeking to grow their businesses.
The small business market is widely recognized as being underserved by the digital offerings of many banks. To gain traction in this important segment, banks need to start by realizing that a one-size-fits-all approach to the market may not work for companies having widely-varying needs. A digital solution based on consumer needs will likely not work well for many companies, and an app designed for big businesses may be unnecessarily complex. It’s also important to offer an easy, fully digital account-opening process, strong self-service capabilities and payment options, and proactively provide financial education based on insights gathered from usage data.
