Around the world, banking customers express similar frustrations: they believe the value they receive from their banks is declining, at a time when their trust in those banks already has eroded.
What’s more, according to a Cisco survey of 7,200 banking customers in 12 countries, four out of five customers would trust a non-bank, such as a technology company or retailer, to handle their banking needs. Some of those disruptive competitors are succeeding where banks fail: by engaging customers with convenient transactions and value-added services.
The Cisco study found that Internet of Everything (IoE)-enabled services can help restore the value customers expect from banking institutions. IoE — the networked connection of people, process, data and things — makes it possible for banks to offer a more relevant, engaging, and convenient experience for customers.
Of the $19 trillion in global economic value Cisco estimates IoE can create over the next decade, 7 percent ($1.3 trillion) is accounted for in the finance market and could be addressed with concepts included in this survey.
The digitization of business and society is happening at a rapid pace and people are looking for improved, digital services that make life easier. Banks need to embrace this pace of change and deliver relevant services or risk becoming obsolete in a market where other providers are stepping in to fill the gaps.
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Tags: analytics, banking, CCS, Cisco, Cisco Consulting Services, data, digital, Financial Services, hyper-relevance, innovation, Internet of Everything, internet of things, IoE, IoT, Wim Elfrink
In years past, a visit to the neighborhood bank branch often featured face-to-face meetings with a trusted advisor who would guide customers through their most challenging financial journeys — often over a cup of coffee. Today, many banks have ceded that privileged position of trusted advisor. While banks have made great strides in using technology to cut costs and streamline transactions, customer experience and engagement have suffered.
In a Cisco survey of 7,200 bank customers in 12 countries, 43 percent of customers said their primary bank does not understand their individual needs. As a result, many respondents feel that their choice is between bad financial advice or no advice all. Moreover, nearly one in four bank customers intend to choose another provider for their next financial product or service. Increasingly, that provider could be a non-bank such as Apple, PayPal, or a retailer. Four out of five customers would trust a non-bank to handle their banking needs.
Clearly, the perceived value that customers receive from banks is declining, along with their trust in banks to represent their interests. Banks are seen as commoditized — and replaceable — providers of transactions. Meanwhile, in the wake of the financial crisis of 2007-2008 and some well-publicized banking scandals, banks’ “trusted advisor” status has suffered. Moreover, it is easier than ever to switch to a non-bank that customers believe has a better understanding of their needs.
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Tags: analytics, banking, CCS, Cisco, Cisco Consulting Services, data, digital, Financial Services, hyper-relevance, innovation, Internet of Everything, internet of things, IoE, IoT
Today’s banking consumers are used to experiences that reflect their likes, dislikes, past histories, and even their future plans. But not always from their banks. These kinds of interactions are more common when buying an online book, streaming a movie, or planning a vacation. Despite numerous omnichannel initiatives, many banks continue to lag in providing contextual, relevant, and convenient experiences to their customers. And while many customers yearn for personalized financial guidance, a Cisco survey of 7,200 smartphone users and bank customers in 12 countries found that for too many bank customers, the choice is between no advice, or what they perceive to be generic advice delivered inconveniently.
As a result, bank customers often try to attain their most important financial goals on their own, via “friends” on social media, or from non-traditional providers of financial services. Moreover, since the financial crisis of 2007-2008, banks’ brand equity has fallen. Read More »
Tags: analytics, banking, CCS, Cisco, Cisco Consulting Services, data, digital, Financial Services, hyper-relevance, innovation, Internet of Everything, internet of things, IoE
Today’s CIOs lead in a world where rapid innovation is the key to success and disruption is a constant threat. Now, more than ever, technology is one of the biggest drivers of achieving successful business outcomes. In this new era of Internet of Everything (IoE) computing, CIOs are being called upon to streamline and optimize complex infrastructures, transform their operating models to drive innovation, and, as importantly, leverage this innovation to capture their share of the IoE Value at Stake. Not an easy task for even the most experienced CIO.
Traditional IT infrastructures are complex, manual, and non-programmable — they can’t quickly respond to the needs of a given business. Because of this, the bulk of IT resources are often consumed with “keeping the lights on”, leaving few resources to drive transformation or innovation. Unfortunately, competitive pressures are leaving lines of business owners unwilling to wait for IT resources. It’s become patently clear that a fundamental shift is needed Read More »
Tags: CCS, Cisco, Cisco Consulting Services, Fast IT, IoE, IoE Value at Stake, IoE Value Index, Martin McPhee
As I was walking the aisles at the National Retail Federation “Big Show” in New York last week, I was impressed with the myriad of connected, smart solutions now available to retailers. Augmented reality, data analytics, video-enabled in-store robots and warehouse drones, you name it, it was there.
I’m just as dazzled as everyone else by these new technologies, but I believe it is important for retailers to view them within the wider context of making their organizations digital enterprises by taking action on the Internet of Everything (IoE). IoE is the networked connection of people, process, data, and things, and Cisco projects these connections to surge from 13 billion today to 50 billion by the end of the decade. With a total value of $19 trillion from 2013 to 2022, IoE is a profound market transition. Read More »
Tags: Cisco, Cisco Consulting Services, hyper-relevance, Internet of Everything, internet of things, IoE, IoT, Joseph Bradley, National Retail Federation, retail