The digital revolution in banking has only just begun. Today we are in phase one, where most traditional banks offer their customers high-quality web and mobile sites/apps.
An alternate approach is one where digital becomes not merely an additional feature but a fully integrated mobile experience in which customers use their smartphones or tablets to do everything from opening a new account and making payments to resolving creditcard billing disputes. Among the people we surveyed in developed Asian markets, more than 80% said they would be willing to shift some of their holdings to a bank that offered a compelling digital-only proposition. For consumers in emerging Asian markets, the number was more than 50%.
Many types of accounts are in play, with respondents indicating potential shifts of 3545% of savings-account deposits, 40-50% of credit-card balances, and 40-45% of investment balances, such as those held in mutual funds.… While it’s important for banks to digitise their businesses, creating a new digital-only banking business can meet evolving customer expectations quickly and effectively. This is especially true in fast-growing emerging markets where customer needs often go unmet.
Launching a successful digital-banking business requires a marriage of traditional consumer research and a deep, real-time understanding of the behaviour and pain points of individual customers.
From “Building a digital-banking business”