What’s required to create a hyper-relevant financial institution
The standard retail banking model is under siege. Marketing alone can't bring about the necessary transformation, but under the direction and vision of a 'new model' CMO, traditional institutions can (and must) match the experience-driven advantages of new types of competitors that consumers love.
In almost every industry the traditional boundaries defining it have blurred. Banking was a little later than some in this digital transformation, but no longer. New entrants seriously challenge long-held notions of how financial services are defined and delivered.
Eight in ten bank and credit union chief marketing officers, surveyed by Accenture, acknowledge that consumers are becoming more open to engaging with new entrants for products and services. The success of direct banks such as Ally and Marcus by Goldman Sachs, as well as some challenger banks such as mobile-only bank Chime, which now says it has signed up five million customers, serve as clear indications of this new landscape.
As a further indication of the changed landscape, more than three quarters of financial institution CMOs agree that the new banking players use customer experience as the key differentiator and that they are often better at providing more relevant offerings than traditional players, according to the Accenture survey.
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