Traditional banking is losing ground to online payment systems. Almost a third of Britons (31.8 per cent) – including many of the youngest and wealthiest customers of banks – have made use of some kind of online payment service. A few years ago this would not have been conceivable, but now with the advances in ‘fintech‘, which legacy banks are slow to uptake, a seismic shift is starting to happen in retail banking.
Customer service is at the foreground of traditional banking, yet banks are continuing to lose customers to more engaging, dynamic fintech companies. One way the fintech companies challenge legacy banks is in their appreciation and leverage of design.
‘Design Thinking‘ is an approach that can be used from the outset of building your brand, ensuring that customer engagement and ease of functionality are built in to all processes and strategies. Design Thinking and customer service go hand in hand, resulting in long term customer retention.
Stages of Design Thinking:
Image Credit: Forbes.com
Legacy banks need to adapt rapidly because adopting new ways of thinking and having a dedicated innovation programme is no longer a choice, it’s a necessity. If they don’t act fast they will face an even greater migration of their clients to the plethora of ‘modern’ alternatives. By becoming complacent they have left a wide open space for fintech services to enter and steal market share, from right under their feet.