Senior banking executives around the world are having a lend of themselves when they say core banking systems are holding back the shift to digital. Instead, there seems to be a cultural problem that puts the emphasis on sales ahead of customer needs and experiences. In simple terms, bankers don’t get digital.
Buried deep inside a report called “Sales or Customer Focused”, is this striking insight into the mind of banking leaders: “In spite of the lack of progress achieved, 48 per cent of respondents believe ‘customer centricity’ is an overused term. Moreover, 75 per cent state that banks have not concentrated efforts on improving customer services in recent years and remain focused on sales specific activities.”
The study into the global retail banking study, published by Misys and Efma, found that “The majority of banks (87 per cent) perform less than ten per cent of sales via digital, and for one in five banks this figure falls to less than one per cent of sales. In addition, only 12 per cent of customer acquisition is conducted via digital channels, proving banks are failing to fully exploit online and mobile to engage customers.”
Meanwhile, the bankers themselves believe that the heart of the their digital darkness lies with the core banking system. This is nominated as the number-one technology challenge.
More than sixty per cent of those surveyed said core systems — which take years to implement — are a barrier to optimising sales performance (note the focus on selling, not serving).
“Indeed, a third of banks view core systems as incapable of meeting the demands of the sales process, with 12 per cent referring to their banks’ core system as ‘highly incapable’. Examining the business impact of technology issues facing sales teams, slow time to market with new products and services is causing the most pain. Banks are also frustrated by an inability to create customer-driven, personal products and services.”
Among the key findings:
- Three quarters of executives say banks haven’t concentrated efforts on improving customer services and remain focused on sales-specific activities;
- Nearly half believe ‘customer-centricity’ is an overused term;
- Overwhelmingly most banks globally perform less than ten per cent of sales via digital;
- Sales via digital are forecast to jump from 13 per cent today up to 75 per cent in three years — but questions remain about how this will this be achieved.
According to Vincent Bastid, CEO, Efma, “The ambitious plans to drive the majority of sales via digital channels are unachievable in the current technology environment. Banks must develop a strategic link between digital channels and their ability to support customer experiences that — crucially — result in sales outcomes.
“Those banks that flourish will be customer-focused institutions, founded on core software and systems that can deliver better customer experiences as well as increase sales, all via an omni-channel approach.”
This article originally appeared on B&T’s sister site www.which-50.com
Sustainable soap brand Single Use Ain’t Sexy has been greeted with a huge influx of support after raising over half a million dollars in funding via a crowdfunding campaign. The brand has launched itself into the ‘green economy’ by calling on the Australian public to financially back them and their mission to get Aussies to […]
Queer Artist Ryan James Caruthers has publically slammed software company Unfold after it asked to use the artist’s work for free as part of its Pride Month social media campaign. Caruthers took to Instagram to show screenshots of the conversation he had with Unfold after it asked the artist to share 12 of his images […]
After relaunching in September last year, TWOOBS has become a ‘kinda’ shoe brand by also focusing on making the world a ‘kinder’ place and creating more consumer-conscious shopping. The vegan shoe brand founded by sisters Jess and Stef Dadon changed its marketing approach last year and stopped using social media to push sales the old-fashioned […]
Highly experienced tourism marketer Kelly Ryan has been appointed to lead the marketing efforts at Visit Sunshine Coast (VSC). During the past 12 years, Ryan has supported Canberra’s tourism industry in senior marketing roles, including as director of strategy and insights as well as director of marketing at VisitCanberra. Most recently, Ryan has been working […]
GHO Sydney has developed a new educational platform for Family Planning NSW to help parents and carers of children with disabilities navigate the changes to their bodies, emotions and social interactions. The project, ‘Planet Puberty’, was made possible through funding from the federal government’s Department of Social Services, and was co-designed with people with disability […]
JCDecaux today announced conservation organisation, Bush Heritage Australia, as its major charity partner for 2021. The partnership is part of a series of ‘social impact’ initiatives the business is launching this year, under the banner of JCDecauxHEART. JCDecauxHEART focuses on three areas of social impact: health and mental health, environmental sustainability, and enriching urban communities. […]
Shameless Media’s Michelle Andrews and Zara McDonald’s latest podcast, The Books That Changed My Life, will launch exclusively on LiSTNR on Tuesday, 15 June. Throughout the series Michelle and Zara will talk with guests including Kevin Kwan, Laura Henshaw, Jock Zonfrillo, Susan Carland, Hamish Blake and Delta Goodrem about the books that have had a profound impact […]
In celebration of Pride Month, cult streetwear brand Champion has announced an Australia-and New Zealand-first Pride range, Champions of Pride, and ongoing partnership with the Queer Sporting Alliance. Championing a cause, celebrating community, and aiming to create real change, the capsule collection proudly heroes the Pride colours in a selection of signature Champion tees, iconic […]
Following the successful deployment of BankiFi’s technology platform at The Co-operative Bank in the UK, BankiFi has appointed Lloyd Parata to lead their expansion into the Australian Financial Services market. BankiFi’s technology platform ensures banks remain relevant by offering SMEs an innovative solution to operate their business, whilst avoiding common challenges like late payment. Parata, […]
Mars Wrigley 5 Gum has partnered with Twitch to launch Team CLUTCH, a team of Twitch streamers who will assemble on for three live squad streams tackling popular games like Fortnite while embodying the brand’s ethos of ‘life happens in 5’. This partnership builds on 5 Gum’s 2020 Twitch activation, and is set to create […]