7 Reasons Why Digital Banking is Bad!
She is mesmerized by the elegance of the restaurant, as he leads her to a candle-lit table. Food is exquisite, music is tenuous and warm, service is exemplary. Everything is perfect. As the evening comes to an end, "Pardonnez-moi, monsieur" says the garçon, “your card is not accepted”! With a smile on his face, he calmly picks up his phone, and dials his bank. Listening for minutes to the long menus, which he obviously isn’t paying attention to, the option to speak to an agent is nowhere to be found. Gone to wrack and ruin!
Ok, let’s break from the romantic dinner for a moment and try to analyse: Could the bank’s reason to omit the option to engage with an agent be to reduce operating cost? Probably, but its business case is flawed, shows lack of strategic planning and would cause more harm to the bank than good.
Accessing a bank service could be through a brick and mortar branch, digital branch, online banking, mobile banking and telephone banking. A study by the US Federal Reserve shows that there are still 30% of users who prefer to call a bank. Although 71% prefered online banking, those are not exclusive, and times would come where a user wants to access the bank from the channel he prefers. Being available where your customer expects you, is “Digital Transformation”.
People perceive digital transformation differently. IDC predicted that over 70% of siloed digital transformation initiatives fail. The reason? Well, you can read the IDC report if you really want to know. But here I will present to you 7 reasons why Digital Banking is bad.
Really? Do I have to put in my 16 digit credit card every time?
Ok, so you’re driving on the long highway, and you desperately need to finish this bank transaction. “Please enter your 16 digit code, followed by the pound key” darnit! Now you are thinking it’s bad to text and drive, but this is technically not texting. Right?
2. Don’t tell me I have to repeat my issue again!
So you were withdrawing cash from the ATM, the transaction is complete but there was no cash. You enter into the branch explaining the problem: “Sir, it will take 2 working days”. You call two days later, but the agent has no clue, and asks you to refer to the branch. You through your phone in the toilet and move on with your life!
3. If it asks for ONE more password…
Credit card pin, debit card pin, online banking password, double authentication, phone banking pin, and the list goes on. OK, we get it, banks are concerned about security, but why can’t there be a better way to go about it?
4. No thank you, my friend tweeted a horrible experience with you...
Social Media is a powerful tool, not only for businesses, but also for people. I get my advice from a stranger on my friend list all the time, don’t you?
5. Ba-bye, see ya. The other bank has a better offer
Increased visibility, globalization, fintech startups and increased customer awareness took banks’ “retention departments” by surprise. While most banks are focusing inwards on becoming “digital”, they lost focus on their customers in the process.
6. Where are all the “humans” gone?
In a technology exhibition, a friend of mine predicted that in the near future we will be greeting each other with “Hello, I am human!”. Some banks tend to over do it, risking losing customer engagement completely, for reasons I don’t understand. Sorry granny, I know you are a lonely heart, but I am a robot!
7. Stop bugging me, I am not interested
No, I am not interested in a mortgage, or a personal loan. No, not even a “free for life” credit card with all the perks. Seriously, stop it! Don’t you know what I want? After all what we’ve been through together?
If only there exist remedies to these situations. Now think with me, could there be a solution for all these predicaments? Are they even valid issues? Did you face any of them at all? I would love to hear your thoughts in the comments below.
Food for thought:
A study done by the US Federal Reserve highlights some interesting facts about digital banking and age groups: 70% of young customers prefer digital banking, while 70% from customers over 60 prefer traditional banking. Can you guess how this will shape up in the future?
Banks and financial institutions are consolidating, more than 50% is the decline in the number of institutions in the last 30 years according to a CBS news article.
If financial institutions are not worried about fintech, they should know that fintech’s global investment grew at 67% year on year in the first quarter of 2016 according to an Accenture report, exceeding $22B.
Oh, about the couple, she paid and he switched banks. But most importantly, we are still together.
Reach out if you are a bank or a fintech startup, we can partner to get him back!
