As every business becomes a digital business, to borrow from Accenture’s technology vision for 2013, the leading edge of bank technology seeks to serve customers whose velocity of need increases with the speed and power of their personal digital technology. The digital revolution is shaping banking and providing opportunities for competitive differentiation.
In three recent articles for Independent Banker magazine, I detail three digital business technologies that are, in Accenture’s words, “well past the point where they should be areas of exploration and experimentation and are quickly becoming practical, available tools. . . ”
Payments Proliferation. Is person-to-person (P2P) a valuable canary in the payments mine? Consumers have more ways to make purchases than ever and will have even more choices over the next few years. This is creating a highly fragmented marketplace in which it’s difficult for any single payment option to gain traction. “My biggest issue is nonbank competition. If we lose customers to another payments solution, we will not get them back,” says Bob Steen, chairman and CEO at Bridge Community Bank, Mechanicsville, Iowa.
The Next Step in Mobile. Prepare for the impending shift to mobile, from basic banking to payments on the go. “Increased balance sheet and income pressure, mass consolidation, and heavy regulation mean we need to move fast to correct some glaring holes in bank strategy,” says Bradley G. Leimer, vice president of online and mobile strategy at Mechanics Bank, Richmond, Calif.
Self-Service Technologies. To complement brick-and-mortar storefronts, kiosk stations offer cost-trimming retail growth and customer-driven service. “Everyone is so busy, and people want to bank just like they shop. They want to do anything at any hour,” says Patricia Koczera, senior vice president, Lowell Bank, Lowell, Mass.