Intuitive and responsive, living services can enable banks to offer customers a fluid snapshot of their wealth status.

In my last post, I talked about what we mean by living services, why they are being developed now and where we can expect to experience them. Today, let’s look at living services in the financial services industry.

In a GAFA (Google, Apple, Facebook and Amazon) world, customers are coming to expect intuitive, responsive products with built-in smart technology that are connected by a vast network—and they expect a best-in-class experience in all areas of their lives, including in their interactions with banks and other financial services organizations.

To meet these increasing expectations, banks should consider partnering with others to develop platforms to deliver services that can adapt in real time to fulfill customer needs in their everyday lives. I’m thinking of services that answer customer questions such as:

  • How can I get a mortgage or loan easily and swiftly?
  • Can I afford to purchase this?
  • How much money can I expect to have in a year’s time?
  • How can I invest my money to reach my objectives?

These questions are a move away from a simple statement-based approach to fluid snapshots of a customer’s wealth status in real time.

To answer these questions and others, banks will need to increase the level of interaction they have with customers, take advantage of the access they have to extensive data on customer behaviors, and embed customized financial services and products with partners in various areas, including housing, healthcare and travel.

Examples of financial services firms that have already headed in this direction include:

  • Mobile 30-seconds cash loan provided by mBank for impromptu financial needs, such as buying a washing machine at a department store
  • One-Click Mortgage by Hana Bank or dk by Danske Bank offer a quick and easy way to apply online for a mortgage(web and mobile)
  • Zillow, a US-based online real estate company, has extended its mortgage comparison services to create a mobile app preapproval service, enabling house buyers to secure a mortgage on the spot, as they view the house of their dreams
  • Payment processing and social banking services such as those offered by iGaranti
  • Fidor, an intelligent online digital bank centered on its user community

These types of experiential living services will not only generate new revenue streams for banks, but they will act as a multiplier for customer interactions and touchpoints. This, in turn, can help generate value for the bank by enabling it to be at the center of customers’ lives and needs. And these living services can help banks develop “exponential” business models—models which can enable an organization to develop new opportunities, expand across borders or stave off competitive forces.

In my next post, I’ll examine what Living Services will look like in tomorrow’s Insurance world.

In the meantime, to learn more, visit Beyond the Everyday Bank.

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