Banks, for the most part, have realized the importance of mobile as a channel. Across the globe, empowered executives are being appointed to head up digital channel programs. Their primary mission: define and implement the mobile banking channel and seamlessly integrate it with the other major digital channels—online banking.
For the most part, they have focused their strategies on ”forklifting” online banking features to mobile without worrying much about mobile payments. However, the new reality of channel migration is a bit more complicated: the merger of virtual and digital channels in this new age of ”omnichannel banking” is bringing digital channels into bank branches, customer homes, and places of business, and transforming the world of payments and commerce.
So, how is the omnichannel reality affecting the world of payments, and why should banks care (aside from the fact that payments-related revenues can account for up to 25 percent of total retail banking revenues)?
Most of us are familiar with mobile apps that allow us, when in a retail store, to scan a product bar code, access online reviews, and potentially buy the product from Amazon.com (or a nearby retailer) at a discounted price. This capability is the new reality (and challenge) of omnichannel in the retail world. Such changes, however, will not end here: imagine receiving offers, digital coupons, credit card loyalty points, and more on your cell phone so that you can seamlessly apply them to your purchases when paying with your mobile device upon checkout (at the physical store or online).
The promise of connecting mobile payments and commerce through new capabilities embedded in the mobile wallet is real, and several mobile-wallet providers have emerged, including a number of non-financial-services players (telcos, tech companies, retailers, and others). Read More »
There’s a lot of buzz in industry circles these days about the impact of “showrooming” on brick-and-mortar brands. Witness the excellent overview by Ann Zimmerman in the April 11 US edition of the Wall Street Journal,“Can Retailers Halt ‘Showrooming?’”
Ms. Zimmerman notes the anti-showrooming efforts of such retailers as Target and Walmart, and the challenge of meeting-and-beating pure play pricing and assortment breadth.
And, she also gets to the core of the issue: It’s not about competition between stores and pure play websites. It’s about competition between the websites of brick-and-mortar brands, and the websites of the pure plays.
We live in the era of Google, an era of web-based search, an era where just about any detail of just about anything can be found on the Internet. Studies of recent shopper behavior show a steady climb in the number of US shoppers who begin their purchase journey with online research. Nearly two-thirds of US adults do so regularly.
The Internet is the front door to all retail brands these days – not just the pure plays. It’s where shoppers are initially won or lost – and where store traffic is increasingly generated.
I happened to pause last week at a pile of newspapers in my father’s house in Atlanta.
The reason: A feature article about Cisco on the front page of the March 25th business section of the Journal-Constitution.
The article was interesting. But best of all, it jumped from the front page to the inside pages of the section… which is why, on page D2, I stumbled across one of the best, common sense advisory articles on retail technology I’ve read in a long time.