Finance Monthly - July 2022

Finance Monthly. Bank i ng & F i nanc i a l Se r v i ce s industry to support traditional and in-person services that they do not rely on but knowother peoplemay. Whether it is the desire for trust, the ability to solve our problems - especially in light of high-profile scams and cybercrime, or to simply deliver a personalised experience, it’s clear that for digital in financial services to reach its potential, people still need people; not necessarily in the high street, but at the end of a message, phone or video. Digital-first, not digital-only What consumers are looking for is for financial services institutions to build their offerings with a digital-first mindset and not digital-only, which is good news for traditional establishments - less so for fintechs and NeoBanks. And who can blame them when it’s something they see daily in other sectors. Retail is starting to blend in-store expertise and service with digital innovations around delivery choices yet in financial services, consumers are being offered chatbots to fix problems and are being turned off as a result. This isn’t a digital versus physical discussion but more about creating a blend where the choice of engagement is down to the consumer: from efficient appbased banking to speaking with a real-life person via chat, phone, video or in-person, when required. Data lies at the very heart of this. Away from devices and evolving customer expectations, there is another driver of change for financial services at a macro level. Governmental and regulatory expectations have translated into a need for banks to play a fuller role in meeting society’s financial needs. Our digital economies depend on organisations and companies being able to unlock the value of data - using it to improve products and services and improve society as a whole. For example, banks are increasingly expected to improve financial inclusion. According to a recent report, seven million adults in the UK are at risk of financial exclusion, meaning that they do not have sufficient access to mainstream financial services and products - something exacerbated by the ongoing branch closures. Financial Services getting it right The beauty of this situation is that all the tools and technologies to realise this future are here, today. There are already businesses demonstrating how it can be done to great effect. One example is Achmea, which has a leading position in the Dutch insurance market, with 10 million customers. The insurer makes use of technology and data in a clever way that allows it to quickly add new services or make changes based on customer feedback. Innovations to speed up its claim processes include an app for policyholders to help them find local tradesmen for repairs through to the use of drones to survey weather damage to properties. Totally secure, friction-free financial interaction Consumers want totally secure, friction-free financial interaction with absolute trust in how their data is captured, stored and used. But, for a sector that’s designed on digits, people don’t want to be just another number. And in this day and age, these two objectives don’t need to be mutually exclusive. The financial services sector has an opportunity to lead the way globally, demonstrating digital excellence with data to excite consumers, bank the unbanked, connect communities and shape society for the better. “In a race to the bottom on price, consumers have been more concerned with who doesn’t charge maintenance fees and who has the best interest rate for their cards or rewards system for their policies than who has the most convenient high-street locations or who provides the best service.” 55

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