“Banks are equally capable of using their extensive knowledge and data about customers to aggregate it in digital channels, but it needs to be made contextual.
Banking has its own success stories, but these tend to come from the disruptors. Take the example of Revolut, which doesn’t believe in branches and invites allows new customers to open an account within minutes via their mobile. Since launching in 2015, it has been particularly successful in acquiring new clients among a highly-educated younger generation, who are attracted by features such as cryptocurrency exchange and peer-to-peer (P2P) payments.
A more sophisticated segmentation method, psychographics, helps banks define them based on their personalities, lifestyles and social classes; thus providing a better understanding.
It takes time, effort and significant investment to make the changes needed, but tech companies are ready to help the banks move away from their legacy systems. If they fail to make that move, Amazon and Google are ready and able to move into their territory.”