The financial services industry is undergoing fundamental transformation. Innovation, convergence, and changing customer demands are forcing firms to think hard about the roles they will play in the future. Many of the firms I work with agree: the nature of the industry is changing – but they don’t always know how to respond.
Before firms respond, they must understand what the expectations, needs and intentions are of their customers. Those expectations are set anywhere, but in financial services – and it’s easy to see why.
What are financial services firms doing wrong?
Many financial services firms have done themselves – and their customers – a disservice. In fact, financial services firms are some of the greatest violators of the concept of customer-centricity. Most organizations are defined completely by product, a structure not conducive to producing a next-generation experience.
What can they do right?
Focusing on products may have worked in the past, but now as customers become more demanding, firms will have to reevaluate, change their focus, and place a significant emphasis on the customer experience. Insurers must now compete for attention with all sorts of more interesting firms, such as media companies often with gaming and other innovative capabilities.
This is a very different model for how financial services organizations consider their role, but a necessity for those firms wanting to achieve high performance in a world that is truly converging.
Watch as I kick off my mini-series on The End of Financial Services As We Know It and answer the tough questions that firms face today.