An unprecedented combination of drivers for change are at work in today’s financial services industry. Some of these factors, particularly digitisation, are influencing the majority of industries – driving increasing consumer demand for highly personalised, fast, convenient, connected interactions that suit our busy ‘on-the-go’ lifestyles.
Across consumer-facing industries, the need for ‘always-on’ services (and beyond) has never been more important – and financial services is no exception.
According to a new and influential White Paper from Diebold Nixdorf, these new levels of interconnectivity, coupled with regulatory reform under the guise of PSD2 and Open Banking, are pushing the evolution that we’re seeing in many other industries, into a revolution in the financial services landscape. Where new market entrants are already making a sizeable impact, these imposed changes are opening the gates to a potential tidal wave of new financial services players, and even more new opportunities – changing the landscape irrevocably.
While all players need to adapt to meet legislative demands, there is far more for financial services organisations to consider than just mere compliance. As the entry of non-traditional banking companies into the financial services space grows at an increasing pace, roles in the customer relationship will transform. Traditional providers must consider their future position and decide how to re-shape customer interactions to make them truly relevant.
According to a report from EY, more than 75% of consumers already hold products or services with at least three financial services providers, and more than 25% with four.
This ‘thinning out’ of customer relationships and loyalty will only increase as agile technology-led providers increase their presence in the market. EY also report that 41% of consumers say they would change providers if a different one offered a better experience. This openness to switching is most applicable to digitally savvy customers, who represent a significant, and ever-increasing proportion of consumers.
To read the White Paper click HERE
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