Are digital-only brands the future of financial services?

In their latest white paper, Somo explore the changing role of traditional and digital banks and consider what the future holds for financial services.

Rebecca Crook

Chief Growth Officer Somo

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With customer expectations relentlessly shaped by the Amazons and Googles of the world, the ever-increasing demands for immediacy, transparency, ownership, convenience and instant rewards have permeated deeply into the world of banking.

And it’s a shift we’re seeing across all sectors. As vertical-agnostics, consumers are guided not by the average, but by a leader, wherever they happen to find it. The velocity of behavioural change triggered by the rise of the Big Five (Google, Microsoft, Apple, Facebook and Amazon) and the rapidly growing tech ecosystem is affecting how consumers perceive the brands and services they use and what they expect them to deliver.

Fintechs in particular have turned what was once a novel concept in the banking space into the new normal, carving out a path for a fresh generation of banking, one that’s real-time, transparent and seamless.

Consumer attitudes aside, the way we deal with money has also changed tremendously. Just twenty or so years ago, appointments with the bank manager were the most effective, trusted and in many cases only way of opening an account, arranging an overdraft or applying for a loan.

Now, you can literally do it in a matter of seconds, at the click of a button. Though, as you’ll see in this white paper, the shift to digital-only banking has perhaps not been as powerful as the industry assumes.

In this white paper, we explore the changing role of traditional and digital banks and consider what the future holds for financial services. We talk about what best-in-class means in this industry, discuss whether the growing influence of digital-only brands means the bank branch will soon become obsolete, and look at why designing around needs, everyone’s needs, is fundamental when designing new products.

KEY TAKEOUTS

Simplicity and ease are the hallmarks of the experience consumers expect. In the era when customer needs are evolving so rapidly, and the expectations for best-in-class experiences are at an all-time high, banks cannot afford to stay still.
The UK’s neobank market is flourishing. But the race is not won by the new kids on the block; not yet. Our research shows 70% of customers feel positive about their current banking provider. There are still issues that must be addressed though.
Bank branches are here to stay. But only if they can adapt to tomorrow’s customer needs. Our research shows consumers still like to go to branches. And no. It’s not only the older generations.
Customers want a blend of physical branch and digital service. They want solutions that solve their pain points. They want spaces that hold meaning.
The role of banks in society is changing. As digital technology morphs the financial landscape, another divide has appeared, that of digital literacy. Big financial institutions must put inclusion on the agenda and bring control back to their users.

ARE DIGITAL-ONLY BRANDS THE FUTURE OF FINANCIAL SERVICES?

Visit Somo's profile to download the full report.

Guest Author

Rebecca Crook

Chief Growth Officer Somo

About

Rebecca has twenty years of marketing experience specialising in the digital innovation sector over the last ten years. She has worked with some of the UK’s most recognisable brands including Lloyds Banking Group, British Airways, Haven Holidays, Tesco Clubcard and Invesco. Rebecca leads the new business and marketing strategy for Somo, working closely with new clients to understand their business challenges. Her focus is on defining how Somo can design, build and create customer-centric digital experiences that give brands a competitive edge and meet the rising expectations of today’s customers. Outside of work, Rebecca has a keen interest in heritage and sits on a number of Boards advising on restoring and bringing historical assets back to life. Most recently, she has sat on the National Trust Strategic Advisory Board and Saltdean Lido, the country’s only Grade II* listed lido.