The need of the consumer is changing and if incumbents want to succeed they need to understand how to evolve, a new series of presentations from Nucoro explain how to do this.
The two-part presentation titled “The Future of Money” explores the financial environment and the pressures incumbents are facing from challenger banks and more digitally-led businesses.
In the first document, Nucoro explained how incumbents were being threatened and the scale of the opportunity in saving and investing. The second presentation, “Understanding your clients’ needs in depth” explores how firms can best reach audiences.
Nucoro, which helps financial institutions incorporate digital services, said, “While their preferences are changing, the good news is that by and large retail banks still have these individuals as customers. Their first and most important financial relationship continues to be their traditional bank. As long as this is the case, banks must use this window of opportunity to build propositions that cater to their customers’ specific money management needs.”
Retail banks have largely unexplored sub-segments within the existing client base, which Nucoro believes leaves space for four potential target audiences. These clients are those looking to save money, want the bank to invest for them, wish to trade and need help with their growth. While they each have different goals and preferences, they still all trust their bank to help them.
Nucoro then provides examples of each type of customer and the opportunity the bank has in front of them. This includes providing planning tools and automated investing, offering tools to trade and supplying digitally-augmented financial advice.
It said, “The different personas have different needs and very different drivers for engagement. The one thing they have in common is a requirement for a seamless digital experience to support them in what they are looking to achieve. There are two primary routes to achieve this. Firstly, a greenfield approach where offerings are built independently of existing digital experiences. Secondly, an integrated approach which brings these new solutions into an already familiar digital offering. Both approaches have different benefits and considerations that will drive your ultimate decision.”
Nucoro claims that by launching a greenfield proposition, organisations can differentiate UX, brand and offering to reach new clients. A customer can receive experience that are optimised for their specific needs. Through a shared technology foundation further propositions can be adding later down the line.
Whereas, taking advantage of existing channels banks can expand the experience and convert current users. “Through a deep integration with existing systems, data and financial flows are leveraged to enhance features and reduce friction in the user journeys. Crucially, the existing experience has to be flexible enough to enable the new propositions to exploit their primary engagement drivers.”
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