Fintech firms and bigtech organizations are capturing more and more of the banking value chain, providing services such as payments, checking and even savings accounts that could erode much of the traditional bank revenues in the foreseeable future. These new entrants pose a threat to banks by raising service expectations and coming between banks and their customers.
The response goes far beyond closing branches, improving online and mobile banking offerings or making current products and services “more digital.” Instead, banks need to move further into the daily lives of customers, providing assistance before, during and after the financial transaction.
Customer behaviors and expectations are quickly adjusting to a world where products and services are recommended based on past behaviors and where location-based offers are provided instantaneously on their mobile device. Customers don’t want to go to branches or do banking. They want financial information and the ability to transact fingertip-ready.
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