#76-Channels to sell Products in Financial Services are shifting big time
It is interesting to see how the big incumbents are moving and adapting to change the channels through which they acquire customers.
By the year 2025–2030, we will have a generation that was born in the age of smartphones enter the workforce. And they may not have ever visited a bank branch in their life yet.
Adapting to mobile, wearable first, or voice/gesture/MR first devices (if smartphones get replaced by something better by 2030) is no longer a choice. It is necessary.
In the above illustration, the store can also mean a bank branch or agency office.
It is proven that digital channels reduce the ‘cost of customer acquisition’ and bring the cost-income ratio down.
The customers acquired through platforms/API and ecosystem partners come at a lower cost compared to traditional channels.
The traditional banks need to reduce the cost of staff and other legacy systems/operations cost extensively.
The incumbents cannot be blamed, because they did not get the option to redesign the business model from scratch.
They had to first adapt to the internet age, then the mobile devices age, and now the smartphone/cloud first age that brought about platform banking/challenger banks. All this had to be done by protecting their branches and traditional channels.
Grab -Singtel are starting with a headcount of 200 plus pre-existing members from other businesses that can be absorbed into their upcoming digital banking operations
This is a very different operating and product model from banks that employ thousands of employees in a country. The roles of traditional bankers will have to change fast through upskilling and shifts to revenue-generating departments.
Operating model shifts related to digital channels, staff expenses, agile architecture is the answer when it comes to winning in the age of FinTech.
Listen to my views on the future of banking and fintech here:
About the author:
Sidhartha Sharma is a Digital Transformation expert and business leader with 15+ years of experience in Management Consulting firms. He helps business leaders and CXO’s in understanding the future trends and current imperatives on topics like-Digital Platforms, Ecosystems, Future-Tech and Org-transformation
He is also a Bestselling Author of multiple books on topics of Digital Strategy, Entrepreneurship, Organization Change, and Optimal Performance and Work Happiness.
His personal writings and columns regularly feature in media houses like Business World, Indian Express, Live Mint, Asian Age and Deccan Chronicle.
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