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How challenger banks can become the future of financial services
Jeremy Grinbaum , VP EMEA , Amplitude , dives into the importance of financial services embracing technological innovation and the future of challenger banks .
HEN IT COMES TO innovation ,
W the financial services ( finserv ) industry has been notoriously slow . However , a new wave of new digital tools is transforming this . In fact , 74 % of banks were attempting to accelerate their Digital Transformations in 2023 . In spite of this , the finserv sector is still reeling from a tumultuous period that has led to a nosedive in consumer trust . At a time when people are shifting their money to ‘ too big to fail ’ banks and dismissing challengers , customer experience is essential .
However , the future could still be bright for the neobanks – a new wave of finserv companies that offer services completely online . McKinsey revealed that revenues within the FinTech industry will grow three times faster compared to the traditional banking sector between now and 2028 . Yet , FinTechs and tech-forward challengers must first navigate this distrust , as well as an increasingly crowded market and ongoing economic instability . Investing in the digital product experience will help these challengers build a competitive advantage and differentiate themselves from legacy competitors . Let ’ s look at how they can do that .
Create a user-friendly product
The first rule of finserv customer experience ? Create an easy-to-use product . Consumers won ’ t leverage a tool that is in any way difficult to use . Financial products must be simple and efficient and should alleviate users ’ stress – not create it . To ensure this , neobanks should identify the core workflows and intended user journeys , as well as pinpoint where processes can be streamlined to continually improve the product and its ease of use . Even small changes to the customer journey can have a major impact on user retention and lifetime value .
For any product , but especially FinTech , ease of use is critical for user activation . Customers who have to jump through hoops for simple tasks , such as managing assets or making trades , will simply find an easier solution . If
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CONSUMERS WON ’ T LEVERAGE A TOOL THAT IS IN ANY WAY DIFFICULT TO USE .
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