Contextual Services in the Digital Environment

31 October 2016

Photo of phone demonstrating digital banking

In the world of consumer finance, timing is critical. With today’s modern tech savvy customers seeing financial services as an enabler for other aspects of their lives, the ability to provide an efficient, timely and highly personalised service has become of vital importance. This, coupled with highly contextualised advice for the individual is where customer experience is heading. It is thus a question as to who will deliver these innovations? Will it be the new alternative lenders who deliver this contextualised service or will incumbent banks be able to adopt these customer centric innovations?

This notion of contextual banking services is the core proposition for many of the new entrants in the industry. With many customers expressing dissatisfaction with current services offered by incumbent banks, it is through their digital nativity that challengers seek to assist customers in improving their financial lives. With a range of cutting edge technologies the new comers endeavour to expand customer experience through personalised products, prices and experiences.

The question is, how easy will it be for more established banks to adapt? Will issues of organisation and legacy systems limit the ability of well-known banks to provide contextual services? Can these institutions use the data they have about consumers to provide timely and appropriate products to cater for an individual’s needs? There are many more questions being asked than can be summarised in this article, but the answers to many still remain unanswered.

Whilst it is unclear as to who and in what capacity these contextual services will be administered, there is some idea as to what they will involve. A system must be created that encourages a mechanism of communication between the individual and the firm. This does not mean bombarding the customer with offers every time they check their bank balance but instead creates an ongoing dialogue that aids and expands customer experience.

For more information on our recent conference please visit www.bankinghorizon.com.