Did you know that innovation in the financial industry is considered one of the main needs of the industry and the world? It is undeniable: in the 21st century only those businesses that have known how to adapt to digital transformation will remain afloat and the Financial Industry cannot be an exception, it is more – due to its importance in the market – it is an obligation.Despite the great innovations that have occurred in the world and in the uk phone number database , it is incredible the number of companies and businesses that have not yet changed the chip from the Industrial age to the information age. This gap between digital and traditional is immense and, closing it, requires much more than implementing some tools and strategies such as creating a website or having a page on social networks.Businesses need to adopt sustainable digital strategies that allow them to achieve exceptional presence and authority on the web, which is where the modern prospect is .It is a fact, the networks have transformed our daily lives. Mobile devices connect us across borders and provide us with direct and personal knowledge of the world in real time.This social transformation revolves around the unstoppable advance of technologies that, because it encompasses all orders of development (personal, professional, industrial, cultural, social and economic), is forcing us to make a huge digital adaptation effort. Making evident the need for men and companies to evolve in parallel , as Andy Stalman would say in his book Brand Off On .
It is worth mentioning that the UK Phone Number List of not doing so can be serious. As Bill Gates says: “In the 21st century there will be two types of businesses: those that are on the Internet and those that no longer exist.” The change is already here and the only possibility to face it successfully is to be prepared to jump into digital sales channels and have an active business life on the web.There are many examples of companies that have slipped into recession and shutdown due to their lack of digital innovation. The case of reference has always been Eastman Kodak . Kodak completely ignored the need for photographic innovation, which back then was the digital camera. And by the time he realized the importance of it… it was too late.For this reason, it is necessary to understand that the mentality of consumers has been altered forever due to the Internet and will never return – ever – to the habits and customs prior to the digital revolution. So companies must exercise their brains to see less backward and more forward.
Many industries, such as photography, experienced the need for innovation many years ago. Other industries, such as finance, are just experiencing the need to do so. However, there needs to be an adequate and rapid reaction so as not to jeopardize the continuity of any entity.The information available to anyone, the user-to-user contact and the immediacy of the communications have brought about a transformation. Now prospects are hungry for interconnection, access to various informational sources that guide their buying process, and the ability to interact without limits.The Financial Industry is not alien to these trends, for this reason it is necessary that all the institutions that comprise it recognize and prioritize innovation in the short term, before it is too late and innovating implies losses and costs in order to readapt to the modern client and changes in the environment.
The future of the Financial IndustryAccording to Dan Ciporin, general partner at Canaan Partners, the future of banking is based on adopting more advanced technology and innovating its digital presence. Well, if they don’t adapt, the big banks are at great risk .Unlike other industries , the Financial Industry has had a much slower process in adapting to technology due to all the regulations. However, entities around the world that are beginning to implement financial technology (Fintech) have affirmed that their clients are more satisfied with the service, their user acquisition has improved and they have a reputation for transparency in the eyes of the user and they have become in opinion leaders in the Industry .
What’s more, according to McKinsey , financial institutions will see their profits drop from 20% to 60% by 2025 if they don’t rush to implement a digital transformation.Even, according to the president of BBVA , the world financial system is undergoing a major reorganization that will drastically reduce the number of financial institutions. He also clarified that if you want to stay afloat you have to master technologies anddigital changes., achieving a digital strategy for sustainable growth for a financial institution takes time. It takesalot of planning time and must be oriented to the long term, since it must be effective for the next decade, not just for the next year. Such a growth program should have modern customer experience and interaction at its core. This can only be achieved through digitization and good user education through a blog, for example.The bank must transform the relationship it maintains with its public. You have the challenge of knowing what your client is like and what it will be like. The modern customer is someone who is online or about to connect . This level of connection is what banks must bear in mind when addressing customers. Interaction on a digital channel is decisive in this century .
The problem is that many entities underestimate the resources they have to communicate with prospects. However, taking advantage – or not – of this opportunity cannot have neutral effects, but rather its consequences are positive or negative for the Industry.The truth is that there is a considerable population of consumers who are relying on digital channels to boost preference and maintain loyalty to the Financial Industry. Consequently, it is essential for banking to have a properly integrated digital platform that responds to new consumers in the sector.So, the Financial Industry does not have to always be traditional, it can innovate the way they do business – it has a field of infinite opportunities to develop clients, inform and get prospects, thanks to the digital transformation.So the CEOs of the different financial institutions should avoid their own ‘Kodak moment’; fostering innovation, assuming responsibility for designing financial products that fit the consumer needs of customers and, in turn, assuming the risks that such innovation entails.This financial innovation involves devising ways that modify the current operation of the financial system, from tangible things like ATMs, to intangibles like risk control, online applications and the use of the Internet to generate prospects and educate your customers.However, the Financial Industry is only in the early stages of digital transformation. Banks are in time to transform their organizations and become sustainable players within the financial system. Those who manage to simplify the process for the user, will be the ones who benefit from high operational efficiency, cost savings and will obtain a greater customer acquisition.This is because innovation generates growth, since the user is given the new experiences they want and the approach with the financial advisor they need to improve their quality of life and finances. This will have an impact on benefits for the bank, as it will be preferred over the competition.As Francisco González , president of BBVA, would say , “Banks must become data-driven organizations and offer knowledge-based banking: new products and services based on information and adapted to the needs of each client.”
