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Monday, July 28, 2014

Favoring fashion in Services

When you see anybody using her iPhone or wearing a Prada outfit, you think about fashion, status, and related things like that. Bank Services can be in that fad.  Does anyone can see such thing applied to banks? Maybe the answer can pop up in thousands of  different ways.  Out there are hordes of millennial, and other older technology lovers who want the services the easy way and be considered like very valuable collectible pieces for their banks, in the same way they impulse those services like a fashion trend.

It's clear that they do rely on their expensive gadgets to access banking services. FISERV conducted a survey on 2013, where they found that Millennial use more primary banking services than other generations. For they Debit Cards, Savings Accounts and Mobile Banking are top priorities.  The  "Trends in Consumer Mobility Report"from Bank of America   revealed that out of 1,000 U.S. adults, 47% admitted they would not last a day without their smartphone. About 85% of survey respondents check their mobile devices a few times a day, the report concluded. And the amazing "Believe or Not" fact is that 96% of adults between 18 and 24 years old believe using a mobile phone is more imperative than using the Internet or taking car of its personal hygiene. 

The same report shows that around 84% of interviewees declared to have visited branches but an astonishing 75% of them completed their transactions online or with a mobile device. It´s important to understand that everybody is wary about the importance of financial decisions.

No matter how much the Millennial depend on technology, they look for trustful advice. Something that leads them to branches. It's imperative for banks to bringing financial instructional  programs in the form of seminaries, continuous education programs and have the right people at hand  to answer specific questions. This should be best complement to FAQs and Chat on Line. For people, is very important setting financial goals and be advised by trusted financial sources such as branches employees. Under this point of view, branch´s personnel  will be fully trained in financial advisory, thus, the common monetary old branch transactions should be solved by other means but human intervention from the bank side.

So, what is "cool" in banking services? What does attract Gen Y to the bank? Advisory? Financial safety based on a good advice? Which on-line services are useful in one side and profitable  in the other? Profit comes from long relationship with customers, so, does  any loyal customer guarantee profitability? And every answer will find mobility as a part of it.

Customization in services can play a key differentiation among contestants for the major ,prize: millennial. Since they, Gen Y, use mobile technology extensively, it is logical to think about customized service platforms and services, ranging from personalized debit cards to omni-channel experience.

Usually, we can distinguish 3 kind of players; global banks, country  banks and small or local banks. Commonly, global banks are the first to adopt new technology. Old legacy systems often mean anchors that do not allow full deployment of new services without an enormous effort, sometimes with a bit of trial and error, the bad news is that big banks usually own those old legacy systems. Country Banks are committed to new technology and innovation in different levels of action, but small ones are not stars for carrying out innovation as first players, they do rely on proven technology, that's because they can not afford to fail in this field, but in contrast they use technology and services that has been 100% tested and guarantee a good user experience.

No matter if the brand new service and technology promises to catch up a lot of customers. In the end, the everlasting services and technology must be reliable.And it´s clear that when a successful service or technology emerges, it is "on fashion", and continues to transform in a classic, a commodity. Meanwhile, any effort addressed to understand Gen Y will be the best investment for future profit.



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