For a financial service provider to make an impact digitally, the added value of its offering must be immediately clear. In terms of software, this can be achieved with the right balance between sustain, build, and buy, as well as a short time to market for the products.
It is undisputed: In hardly any other industry is the interaction between service providers and customers as strongly influenced by digitalization as in the financial industry. Almost all basic transactions are now conducted via digital – and increasingly mobile – channels. Today, physical presence is only required for complex transactions and as a competence center. Digital signatures and blockchain will boost this trend in the near future.
Customers expect more than basic e-banking
Today’s customers know what they want. They consider basic e-banking functionality to be a standard that no longer triggers any enthusiasm in them. They simply take payment processing capabilities (deposit slip scan), Twint, Apple Pay, Google Pay and Samsung integration, as well as real-time information within the app (including push) and e-bill integration for granted.
The entry barrier to uncomplicatedly open an account including the use of credit cards is lower than ever for customers. In part due to the Covid situation, banks are making online video identification and, consequently, paperless «onboarding» more widely available.
The key to success are special offers via app
It is becoming increasingly difficult for financial service providers to emphasize their specific digital features. Low fees ( free account) no longer do the trick. The decisive factor are special offers («features») that are provided in the app and with which the bank differentiates itself from its competitors. An example are investments with sustainability label («ESG»), i.e. shares or funds with sustainability rating, which the customer can subscribe to.
In the fast-paced digital world, it is therefore crucial that financial service providers continue to be perceived with their USP and that their digital mobile offering is aligned to it. Some financial institutions today only interact digitally with customers via the mobile channel.
Ideal balance between sustain, build and buy and speed!
So what does the actual implementation look like? The challenge for banks is to complement existing structures (sustain) with selected OTC components from the market (buy) and individual extensions (build) so that the mobile offering clearly reflects the USP. Thus, the goal is to ideally combine investment protection of resources and infrastructures with existing and standardized components, and new individual elements.
However, regardless of the offering with which a financial service provider wants to position itself in the market, speed is key when it comes to implementing individual enhancements. Traditional financial institutions are therefore increasingly facing challenges and options from the world of software development. The vision of having new features ready for the market before the business departments even require them does not have to remain wishful thinking though. By using advanced software development processes, the time to market can be kept short.
Two issues are crucial in software development and their importance is highlighted by the increasing functional scope:
Both topics are priorities of AdNovum’s offering. For more than 30 years we have been buildung software for financial service providers which is both secure and user-friendly. Our solutions clearly reflect the strategic market positioning – the USP – of a client and thus generate the decisive added value. We will be pleased to define together with you the ideal technology mix to make your mobile strategy work.
Interested? We are looking forward to your getting in touch and a no-obligation consultation.