“Some bankers and analysts believe that Google, Facebook, Amazon or the like will not fully enter a highly regulated, low-margin business like banking. I do not agree. What’s more, I believe that banks that are not prepared for this type of new competitor face certain death ”. Francisco González , president of BBVA.Undeniably, European banking has demonstrated an impressive mastery of digital transformation strategies, which have led them to be digital banks of global and international reference . “The idea is to reinvent itself as a knowledge-based information company, prepared for the modern and future era; a deep ambition, very different from the strategic visions of the majority of the CEOs of the great world banks. ” Francisco González indicated .Indeed, a profound change in the channels, products and services offered that allows users to be less and less dependent on physical agencies for customer service is what the majority need and seek. And European banking has known how to respond to these needs.In Europe they have induced an evolution that allows not only the digitization of current channels and the improvement of products already offered, but also the creation of completely innovative and disruptive products and services in the financial uk phone database .Mainly motivated by the ideas that González mentions about new competitors. According to FinTech , the threat of invasion in the financial and banking world by large Internet companies is increasingly visible . “Payments, money transfers and currency exchange are areas of traditional banking where technology companies are already active.”For example, Google has banking licenses in various parts of the world and Apple has the idea of investing billions of dollars in the purchase of a large bank. These facts should be enough for the CEOs of Financial Industry institutions to innovate their products and services before it is too late.
Although the aspects of banking do not change from one day to the next, according to González, “the UK Phone Number List valuations of banks will change drastically, probably over the next two years” and for this reason, it is not worth the innovation of the digital age is worth lagging behind.Although it is true, the Financial Industry, around the world, has promoted great efforts to be part of the change that digital transformation entails . However, without a doubt, European banks are currently leading the way in this fight for innovation.”All banks are already working on it,” says staff from Sabadell , a Spanish bank. Even entities like BBVA have been working for a long time on test models, which have given them the upper hand to become the international model for the future of banking.Although one of the biggest problems facing the Financial Industry in the face of digital transformation is regulations, in Europe there has been incredible progress in the need for specific regulation for digital models. When in Latin America, you are just beginning to become aware of it.”The sooner you do it, the sooner you get to the market and whoever hits first hits twice.” They point from Sadabell. There is no doubt that this is the reason why BBVA is making this monumental change.“Frankly, I think we have a great opportunity to become the first bank in the world to successfully transform into a pure digital home. It is not just about being a bank, but about being a knowledge-based information company . ” González mentioned.But, what exactly are the strategies that these large banks are implementing? What points are they taking into account in the face of this digital transformation? Next I will show you each one of them, so, if you want your Financial Industry to make a difference, keep reading!The reinvention of European bankingAccording to González: “as banks, we have a huge amount of information, but we store it in different parts of our business. What we are doing is transforming that information into knowledge and knowledge into products. For our clients, it is about being able to access everything they need in real time, using our platforms or digital applications . ”
Indeed, having an innovative business model is what the Financial Industry needs . This innovative model can come both from external competitors outside the financial system, such as startups, as well as from the banks themselves and their internal initiatives.To begin with, it should be noted that the Financial Industry has been revolutionizing for some time; trying to deal with using the internet to suit the needs of the modern prospect.Such is the importance of using the Internet as a digital sales channel for banking, that even in Spain an event called Revolution Banking is held . Revolution Banking emerged as a community that seeks to combine strategy, innovation and technology to transform banking.Revolution Banking made a study of trends in 2017 about the strategies of the banking business in Spain, which are interesting to analyze, to get ideas of what are the priorities of Spanish banks.In this graph, for example, we see that 41% of banking businesses are seeking to digitize their branches and integrate and automate multi-channel processes; of which the Internet is the main sales channel and customer service channel to use in this digital age.The 83% considered applications, mobile devices, data connection, etc. It is the main thing they should invest in this year 2017 to keep up with the competition.Finally, we see what are some opinions of the experts about what the future of banking will be for the next 5 years:
Once the priorities of European banking are clear, we can see what the specific points of innovation are:1. Smartphones and Tablets – omnichannel strategyHaving an omnichannel strategy means that customers can enjoy the same service through all channels, whether they are mobile devices, tablets, desktops, agencies, ATMs, etc. and have the possibility to move freely from one channel to another.
They even have the possibility that users can open a bank account from their mobile, without the need to approach an agency. It is important to take this into account, since if it were to become generalized in Latin America, it would have the potential to bring banking access to the least served segments. Remember that banking has 2 types of customers: those who are already connected and those who will connect.Although it is true, the user needs to attend the agency to open an account to be able to identify him and have his consent. However, there are more options to consider. We currently have high technology such as voice recognition, facial and fingerprint recognition that would allow us to carry out these processes and bring us closer to the opening of digital and immediate accounts.These initiatives mainly come from BBVA , who seek to accelerate the digital transformation of the global Financial Industry, offering more than products and services, new experiences for the user’s daily life.2. Technology platformA technology platform that supports the information of the entire business is vital, according to BBVA. “Not only to support the growth in the volume of financial transactions through smartphones and other digital technologies, but also to allow them to focus on the development of applications that they can offer to their clients. Like the services and information they want, the way they want and when they need it most . ”BBVA began developing its technology platform in 2006. Years later, it became operational and has advanced rapidly to bring them where they are now.
3. Structural changeOne of BBVA’s strategies is the creation of a digital banking division , in charge of directing its transformation throughout the group. Well, it is not only a question of products and services, but of change of structure.According to González, “most banks pay attention only to the roof; to the products and services that customers see. The problem is that if you just build the roof and don’t change the structure underneath, the whole building becomes very unstable. “For this, it is necessary to follow in their footsteps . According to McKinsey studies , 90% of European banks invest in digitization. Estimating that these institutions will be able to eliminate up to 25% of costs if they take advantage of this digital change. It certainly gives something to think about, doesn’t it?4. No resistance to changeWhat holds most financial institutions back is that they still see digital from a very limited point of view. McKinsey states that small banks only digitize between 20% and 40% of their processes – which is concerning.Many do not digitize because they hide behind the problem of security and risk. However, they are excuses. European banks are an example of what can be done without a problem . Certainly, in Latin America, we are not far from entering those opportunities.5. Free platformAlthough not many institutions have implemented it, they consider it as a possibility.Having a free platform “means that if Amazon, for example, wants to create or provide an account to its customers, we can provide it through a free API. We can provide financial capabilities to any third party that wants to offer financial services products. It could be Tesco, Wal-Mart, Amazon or any other. In that sense, it would be a Tesco account provided by BBVA. ” Luis Uguina , Banco Macquarie.These strategies are what have facilitated innovation for European banks in this digital age, which have also allowed them to take the lead in the Financial Industry.
Even Mastercard did a study on digital banking in Europe and the benefits of its innovation. These were some of the results:
The 93% of the population uses the digital banking in Spain; 38% of them use it daily, we are talking about almost 50% of the population – so, effectively, it has a preponderant role in the life of the user. The 70% says they prefer because it saves time .Even the population believes that digital banking is going to increase because it is simple and convenient ( 62% ), because it can be used on smartphones ( 40% ) and because it is safe and provides greater protection to the user ( 39% ). This study confirms that consumer needs and their satisfaction are what motivate the digital transformation of the various entities.Clearly, we still have large traditional banks that must move on. But there is also huge potential for opportunities everywhere for everything the bank is doing digitally. It is a matter of taking advantage of opportunities and tools, since different skills and capacities are required for adaptation in the digital environment.Do you want some good news? At Niu.Marketing we can help you! If you want your institution to be a leader in the financial industry, do not hesitate to continue reading and inform yourself with our blogs. The Financial Industry has already entered the digital era, Inbound Marketing for the Financial Industry is already an option, find out what this means! Don’t be left behind.
