How Can Traditional Financial Services Players Compete Against FinTechs?

by | Jun 2, 2022

Dismantle The Threat of Disruptive Fintechs by Adopting The Kind of Technology Platforms That Provide Consistently Good Customer Experiences

Technologin in Business The future success of traditional financial services organisations depends on their ability to edge out competitors and overcome other business threats – such as recent unexpected global events, which caused three major banks in the US and UK to shut down thousands of physical branches since 2020. In fact, recently, Barclays announced the closure of a further 27 branches! While world-changing threats are difficult to predict, the ongoing threat of disruptive fintech startups can be proactively addressed by financial services companies.

Research from Venture shows that fintech investments hit US [$91.5 billion (€84.53 billion)] in global funding in 2021, nearly doubling the years.

Traditional financial services can keep the upper hand in this increasingly challenging environment, however. In fact, it is not so much the revolutionary technologies or processes (that can easily be replicated) that make fintechs so attractive, but the experience they provide customers. By utilising technology platforms to centralise data and communications, even the largest, most traditional, financial service organisations can offer similarly high levels of customer experience (CX).

You can rely on Doxim Customer Communications Management (CCM) for the latest technology and managed services you need for a competitive advantage. BOOK A PERSONALISED DEMO TO LEARN MORE

Understand your customer and deliver the experiences they expect

Business team having a meeting Money is an intensely personal thing for everyone. Whether it’s buying a home, investing in a child’s education, organising the holiday of a lifetime, or planning for retirement, money plays a significant role in so many of the most important parts of our lives. And to unlock (or grow) that money, most people must go through a financial services organisation of some sort, whether that’s a bank, building society, investment house, or a specialist lender. It’s therefore pivotal that these organisations not only demonstrate that they can provide the necessary services, but also that they understand the unique needs of each customer. Critically, they need to do so at every touchpoint, particularly when dealing with their loyal, existing customers. In so many other parts of their lives, people have become accustomed to hyper-personalised, hyper-relevant experiences. They increasingly expect their financial services provider to deliver similar experiences. And if they don’t, they will leave and find one that does.

Leverage the power of data and a customer communications management platform for a great CX

Fortunately, financial service providers have a superpower in the shape of data. As IT services company Capgemini points out, “while digital technologies are critical, data remains a banks’ most significant asset”. The same is true of other financial service providers. When that data is utilised correctly, it can result in the kind of highly personalised experiences that customers thrive on. But it must be organised and filtered in such a way as to give the organisation a single view of the customer. After all, customers experience many different phases of interaction with a company and each of those touchpoints could contribute to a positive customer experience. Customer communication management platforms ensure that every department within an organisation not only has that overarching single view of each customer but is also able to meaningfully act on it. Using a customer communications management platform (CCM), organisations can send messages to customers that are tailored according to their needs and preferred communication channels (web, email, text, print) and devices (mobile, laptop, tablet, PC). A CCM platform also ensures that messages received not only include the necessary customer information, but also the entire context of the interaction, namely customer profile (e.g., lifestyle and life-stage needs), history of online activity, and personal preferences. While those are important for all organisations, they are particularly important for financial service providers, where certainty is key to building trust among customers. A CCM platform can also help financial service providers deliver a great digital experience by creating, sending, and storing customised messages and providing consistency across all the channels that customers interact through. In addition, it enables the organisation to leverage the data on hand to generate highly personalised offers that are relevant to each customer’s needs and lifecycle stage. A good one will also cater to each customer’s accessibility needs.

The imperative for adaptation of CX focused technology platforms

Customer accesses digital platform Over the past two years most organisations, including those in the financial services space, have rapidly accelerated their digital transformation efforts. As they consolidate on that transformation, it is critical that they do not adopt technology for technology’s sake. Instead, they should focus on adopting the kind of technology platforms that provide consistently good customer experiences. In doing so, they give themselves the best possible chance of dismantling the threat of disruptive fintechs.

Our Bloggers

Erin Romo headshot
Gum Fa Ng

CCM Strategy

James Hall headshot
James Hall

CCM in Europe

Jason Pothen headshot
Jason Pothen

CCM in Utilities, Healthcare, and Consumer Finance

Josh Noble headshot
Josh Noble

CCM for Banks and Credit Unions

Bill Cullen headshot
Bill Cullen

CCM in Insurance

Curly Lippa headshot
Curly Lippa

CCM in Wealth Management

Shah javed headshot
Shah Javed

CEM Product Strategy

Guest Bloggers

Keypoint Intelligence logo
Keypoint Intelligence

CCM Industry Experts

James Hall
RVP for EMEA & APAC, Doxim
James Hall is RVP for EMEA & APAC at Doxim. James focuses on building partnerships with clients to help them meet their business goals through communication. James has more than 20 years’ experience in a wide range of technology-based roles. His expertise extends across the fields of consultancy, product management, project management, account management and sales. James has an MSc in climate change management.

Connect with me
Schedule My Demo