Over the past 12 months, finance has been the latest sector to reap the rewards from going digital. In an age when convenience is king, customers are embracing the finance sector’s new easy-to-use digital services.
The nature of these offerings means that there is a lot of overlap between the services offered B2B and B2C. This is because businesses and customers alike place a premium on UX. More than that, these innovations have meant that financial services are no longer shrouded in mystery. These digital services offer the accessibility and transparency that customers yearn for in the aftermath of the financial crisis.
The cash being pumped into London's financial technology businesses has already surpassed the entire amount invested 2014 as the capital cements its status as the FinTech capital of the world. It's been the most successful year yet for FinTech, netting $554m (£357m) of venture capital investment so far this year, compared to total investment of $487m in 2014. Traditional financial services companies are feeling the pressure – so what can they do to compete?
Mobile content is the best form of engagement. Every digital offering should be designed for mobile use. Furthermore the information on financial websites is typically far from engaging. There might be video of a CEO discussing figures, but that is not why we come to your website and there is very little information that non-professionals might be interested in.In the financial sector it’s really important to create material that is interesting and engaging because your offering are not the most exciting things in the world.
These companies should be creating this content themselves, especially when it comes to B2B commerce. This is because they have an intimate relationship with these clients. They know this database better than anyone so why should they get to a third party to produce your communications. That being said, they need to create content that is genuinely of interest, so you need to approach it like a journalist, not a marketer. What I mean by this is, Journalists create content that their audience enjoys reading, whereas marketers create content they think people enjoy reading. It’s about getting the right content. For example, people who are looking to invest in China what to hear more about the pros and cons of doing so, not why your product is the right one to do that.
CEO OF precedent ,David Curless, recently argued that there is now a mass expectation that you will see good design wherever you go. He believed companies couldn’t afford to have bad design when it comes to both traditional and digital communications.
Therefore, it is essential that digital platforms were designed to improve customer experience and customer journey.
FinTech companies are in a fortunate position as they don’t have legacy systems, and therefore could bring design in at the very beginning.In the financial sector it is all about revealing information, so no one is overwhelmed with too much of it. David wants these companies to use design to help users navigate through the complexity, but also reflect the content.
It is also important to note that lever design brings differentiation and loyalty that will ultimately improve a companies bottom-line.
“The trouble with market research is people don’t think how they feel, they don’t say what they think and they don’t do what they say.”
A proud advocate of this mantra is CEO of Webcredible, Trenton Moss, who emphasises that traditional market research is not an effective of finding out what your customers want. According to Trenton, merely asking customers their opinions is not useful because “they are not designers” and cannot articulate what they really need.
Instead Trenton recommended following a four-stage approach for the development of digital offering: Identify your users -Understand your users- Design digital experience around their needs-Test your experience with your users. By doing this Moss believe that your digital platforms would truly meet the needs and goals of your customers.
FinTech is the causing a big digital disruption in the finance sector take cannot be ignored. The ascendancy of the online share economy, money transfers, lending, exchange and advisory services all pose a huge threat to his finance sectors existing business models. This change is being driven by millennials who see these new FinTech offerings as easier and more suited to their lifestyle. Online services give a huge amount of freedom and brand loyalty amongst millennials is suffering as direct result, who are very “happy to switch between brands”. To combat this, traditional companies need to adopt a different approach in the digital space to maintain long-term profitable relationships with this demographic. It is “not about selling its about adding value”. Millennial are looking for relationships with brands not a business agreement.
While every single aspect of the financial sector under attacked right now, there is a silver lining for the finance sector; regulation. This will prevent FinTech companies making traditional services obsolete overnight. All the red tape from the FCA is hindering the rate at which FinTech companies are able to get going and allows the less digital savvy companies to catch up and keep pace. However, the time is now for these companies to reassess their business models and think about how they interact with customers.
The nature of these offerings means that there is a lot of overlap between the services offered B2B and B2C. This is because businesses and customers alike place a premium on UX. More than that, these innovations have meant that financial services are no longer shrouded in mystery. These digital services offer the accessibility and transparency that customers yearn for in the aftermath of the financial crisis.
The cash being pumped into London's financial technology businesses has already surpassed the entire amount invested 2014 as the capital cements its status as the FinTech capital of the world. It's been the most successful year yet for FinTech, netting $554m (£357m) of venture capital investment so far this year, compared to total investment of $487m in 2014. Traditional financial services companies are feeling the pressure – so what can they do to compete?
Mobile Content
These companies should be creating this content themselves, especially when it comes to B2B commerce. This is because they have an intimate relationship with these clients. They know this database better than anyone so why should they get to a third party to produce your communications. That being said, they need to create content that is genuinely of interest, so you need to approach it like a journalist, not a marketer. What I mean by this is, Journalists create content that their audience enjoys reading, whereas marketers create content they think people enjoy reading. It’s about getting the right content. For example, people who are looking to invest in China what to hear more about the pros and cons of doing so, not why your product is the right one to do that.
Ensuring good digital design
CEO OF precedent ,David Curless, recently argued that there is now a mass expectation that you will see good design wherever you go. He believed companies couldn’t afford to have bad design when it comes to both traditional and digital communications.
Therefore, it is essential that digital platforms were designed to improve customer experience and customer journey.
FinTech companies are in a fortunate position as they don’t have legacy systems, and therefore could bring design in at the very beginning.In the financial sector it is all about revealing information, so no one is overwhelmed with too much of it. David wants these companies to use design to help users navigate through the complexity, but also reflect the content.
It is also important to note that lever design brings differentiation and loyalty that will ultimately improve a companies bottom-line.
Understand Generation Y
David Ogilvy famously said;
“The trouble with market research is people don’t think how they feel, they don’t say what they think and they don’t do what they say.”
A proud advocate of this mantra is CEO of Webcredible, Trenton Moss, who emphasises that traditional market research is not an effective of finding out what your customers want. According to Trenton, merely asking customers their opinions is not useful because “they are not designers” and cannot articulate what they really need.
Instead Trenton recommended following a four-stage approach for the development of digital offering: Identify your users -Understand your users- Design digital experience around their needs-Test your experience with your users. By doing this Moss believe that your digital platforms would truly meet the needs and goals of your customers.
FinTech is the causing a big digital disruption in the finance sector take cannot be ignored. The ascendancy of the online share economy, money transfers, lending, exchange and advisory services all pose a huge threat to his finance sectors existing business models. This change is being driven by millennials who see these new FinTech offerings as easier and more suited to their lifestyle. Online services give a huge amount of freedom and brand loyalty amongst millennials is suffering as direct result, who are very “happy to switch between brands”. To combat this, traditional companies need to adopt a different approach in the digital space to maintain long-term profitable relationships with this demographic. It is “not about selling its about adding value”. Millennial are looking for relationships with brands not a business agreement.
While every single aspect of the financial sector under attacked right now, there is a silver lining for the finance sector; regulation. This will prevent FinTech companies making traditional services obsolete overnight. All the red tape from the FCA is hindering the rate at which FinTech companies are able to get going and allows the less digital savvy companies to catch up and keep pace. However, the time is now for these companies to reassess their business models and think about how they interact with customers.
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