Retail banks cannot rely on traditional distribution and marketing models to deliver the banking customer experience that people demand today.
Truly knowing customers
Enter agile banks. These digital-savvy banks take advantage of a dynamic distribution and marketing model to reduce fixed costs, grow market share and deliver relevant banking customer experiences at scale and speed.
Agile banks are obsessed with customers. As my colleagues’ new point of view explains, they use the power of new marketing technology and data analytics to get a full picture of customers from transactional data and second- and third-party data sources.
Going beyond generic audience segmentation, agile banks identify individual customers’ critical life moments where the bank can act as a “go-to resource” either directly or indirectly through ecosystem partners.
Moments of influence
What does this approach look like in practice? Compare getting a mortgage in a traditional bank to getting one in an agile bank as just one of many examples:
–The systems-out view. Traditional banks focus on transactional and process milestones—on what the bank must do to move from mortgage initiation to closing. The bank acts to “tick the boxes” on these specific steps:
- Compare. Shopping for a mortgage
- Pre-qualify. Getting pre-approval
- Apply. Applying for a mortgage
- Qualify. Receiving mortgage approval
- Complete. Preparing closing documents and disbursing funds
In this way of working, the mortgage is the end, not the means to the end of homeownership—which is a huge moment in people’s lives.
—The experience-in view. Of course, agile banks must also complete the transactional aspects of getting a mortgage. Yet agile banks interact very differently—and in a broader context—with hopeful homeowners. They focus on individual journeys to homeownership. Each journey is a collection of life moments:
- Dream. The agile bank is there even before customers are officially ready to buy. They assist with planning, strategies for saving for a down payment and the rent vs. buy decision among other areas.
- Shop. Customers look to the agile bank to do more than shop mortgage rates. They provide virtual reality real estate resources, realtor selection services and expertise on neighborhood life.
- Buy. The agile bank stands with customers in making and negotiating an offer, provides mobile mortgage tracking services and connects buyers to customized homeowners insurance offers.
- Move. Service options do not end once the closing documents are signed. The agile bank helps new homeowners pack, select movers, or reserve space in self-storage facility if needed.
- Live. Agile banks are highly tuned to the fact that people live in homes. It sounds simple, but this is uncharted territory for traditional banks. Agile banks provide connection to home furnishing, home improvement and security resources and more.
Because agile is better
Too many banks take a systems-first, customer-last approach to serving people. This makes them vulnerable to disintermediation by competitors, customer dissatisfaction—and switching. To avoid this possible fate, learn more about the agile bank.