Due to digital disruption, an important dichotomy erupts: banks have more interaction with customers than ever but customer have increased number of choices to fulfil their financial needs. As customers prefer choices and experience over being locked into single suppliers, banks need to transform striving to give customers “Choice” which turns the financial services market into a supply side market.
Past, present and future of banking
Overall, the Financial Services industry has presented several changes since the last century where banks transactional model began to experience the maturity and decline of their previous achievements (ATMs and Bank branches will represent year by year a less significant client interaction channels). 1999 set a tipping point in the banking industry by introducing the seeds of mobile banking through SMS as a channel for client’s interactions. Managing strategic decision in a fast-paced technological environment had forced banking to evolve into a new era, the era of Digital Banking where competitors are not going to be the traditional financial institutions, where clients’
loyalty will be ephemeral and expensive. An environment whose pillars stands in “Choice” and “Technology”.