December 1, 2016
Banking is at an inflection point. Technology giants such as Google, Apple, Facebook, Amazon, and Alibaba (GAFAA) are redefining the customer experience and increasingly becoming serious about financial services.
The digitization of everything and the shifting of consumer expectations are creating the next wave of digital transformation.
Changing customer expectations across generations and the rapid acceleration of digital throughout the entire value chain in banking is putting pressure on the long-standing sources of revenue, growth and retention.
But often, it is not the competition right in front of us that we should be most worried about.
The transition from discs to downloads and streaming transformed the music industry. The introduction of the iPhone further transformed the music and camera industry. We are witnessing a similar seismic shift that is reshaping the centuries-old banking business model.
For instance, looking through the narrow lens, the leaders at Kodak and Nokia could never understand that the threat from Apple’s iPhone was much broader. Similarly, in the year 2000, Wal-Mart Inc. could not have predicted the impact of Amazon.com on its business.
With acceleration and convergence in technology over the past five years, experiential digital competitors have grown in importance. These companies offer products or services that, while not physically similar to your bank’s services, provide an experience that effectively replaces it.
Customer experiences often seep from one industry to an entirely different one. For example, consider how customers incr ...