On-shelf banking digital channels
In banking, the problem is not about building your own digital bank or buying it, the main problem and pain is about the level of agility you have with your provider, Do you pay for an on-shelf product or a total agile service? Are you just a company client or a success partner? On-shelf products are the real pain!
Why?:
1- Outdated: To clarify, I am not here to criticize tech service providers in the banking market, Rather, I respect their effort in developing the sector, the article is about reality.
The Digital world is changing rapidly, daily or monthly, User requirements and expectations are growing day by day, and what do you provide? If you don’t work in a fast agile environment you already decided to deliver an old and outdated experience for your customer.
If the bank doesn’t have an agile development plan, month by month, in-house or outsourcing, interacting with the environment, customers, and competitors, the bank always will provide an outdated experience, It a mathematics, the time needed to build a whole product and sell it in the market, it is exactly the time that made the product experience is outdated, at the end, the bank will be a follower for the new experiences, but do you think that will work in this era? Read the next point!
2- Switching between brands is the new normal: In the digital era, there is no loyalty in the way it was before, as there is no intermediate human relationship between you and your customers, there is only their behavior and user/customer experience through the mobile device or the Internet in general.
Social networks, a flood of people, sparking may start from one customer, a good new experience that may raise the bank’s shares and attract new customers or interactions, and by the same time, one bad experience may return the flood in the opposite direction.
That means, the bank doesn’t have the time to keep its clients if it decides to continue in the same on-shelf product purchasing way, when something bad happens what is the time and flexibility to solve it? or if a new trend forces itself in the market, the bank will follow it after ???
3- Uniqueness: This point is the clearest one, how will the bank compete if it buys similar experiences pre-sold for several banks?! Away from the Core-Banking functionality, even in the restrictions environment, banks have a wide gray area to build a unique experience for their clients, a lot of non-core functionality is in the bank’s hands.
4- Change Requests: Another pain with the On-Shelf is about changes, CRs with providers, the time needed for that, where after the purchase the bank feels handless, not unique, and always a market follower.
** Conclusion: When the bank decides to purchase digital products from the shelfs, specially digital channels, I think that bank should build a unique user experience and present it to the suppliers before purchasing the product, so that the provider modifies the product to fit the user experience presented in all its details.
The bank must first ensure the uniqueness of Its product in the market, and that this product reflects its vision with its customers, not the vision of companies that provide banking products, knowing that it will always be better to obtain agile contracts differently, especially with things related to the digital channels, because it is the interface of the bank with its customers.
**Do not hesitate to ask about the best methods and practices that Startappz.com has implemented to ensure the success of our world-class partners, and how we provide them with digital technology with results that exceed doing it in-house.