Data is powerful, but not a ‘silver bullet’
Despite all of the hype, customer data and advanced analytics are not a silver bullet capable of solving all customer experience challenges. The reality is that there are hurdles for financial institutions, including quality of data, systems, channels, budget and skill-set constraints.
If you’re a typical bank or credit union, you’re facing more competition than you’ve ever seen before. However, because the industry is enjoying some of the most profitable years in the history of banking, most institutions aren’t feeling the pressure — yet.
A rising tide does indeed raise all boats. But, regardless of whether you see it or not, intense competition is coming from both old and new participants. The top 100 banks have grown dramatically. Their share of all assets under management steadily increased from 41% in 1992 to 75.5% in 2018.
Powerful New Competitors
Tech giants with trillions of dollars of market cap, billions of customers, and powerful and influential brands are positioning themselves to provide financial services as an adjacency to their core businesses. On top of that, in virtually every sector of finance — deposits, lending, investments, and payments — well-funded, fast growing start-ups are entering the financial industry and leveraging data to win the most lucrative parts of the banking industry’s business.
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