Before my predictions, just a quick reminder of some key themes that will recur here: our macro point of view or “lens” is that the future of consumer facing services is: personalized, data-enriched and omnichannel orchestrated. This will take place over time, but all three aspects will continue to evolve the business models/processes and the consumer experience. It is a transformational journey to software-enable business functions in order to bring customers closer through personalized service and intelligence.
(1) There will be more blurring between physical and digital channels as providers seek to enhance client experiences — i.e. the “Digital branch” or “Digital store”.
Barriers to implementation and adoption are lower. Cheaper and more effective tools such as beacon technology is helping enable better links between online and offline. Two examples include:
- Diebold Nixdorf’s beacon pilot with Cuscal in Australia.
- Emerging trends like the Amazon Go example is very similar to the Connected Commerce retail checkout we debuted at Money20/20. Links online/mobile with in-store shopping for a seamless checkout.
(2) Physical channels will be a key differentiator for Banks and Retailers
Past few years have seen large investments in digital channels. We are seeing many leaders turn their attention to “digitalizing the branch/store” – that doesn’t mean putting it online – that means better equipping and better connecting branch/store personnel to provide service that is personalized, insightful (data enriched), omni-orchestrated. Branches/Stores will evolve to be part of a connected online/offline consumer journey – not an island in the real world.
(3) Banks will take advantage of their ability to be a critical player in Connected Commerce and begin monetizing their data and insights to better connect and serve their SMB and consumer audiences.
Data monetization will be a hot topic for potential new lines of revenue enabled by the investments made over the past few years in big data and analytics technology.
Adding new data services to generate insights about online and offline behaviors to deliver value in connecting merchant and consumer clients will be a potential game changer.
(4) Modernization of legacy systems will be top of mind.
Years of deferrals on updating critical backend systems will begin catching up as some of these antiquated systems are now bottlenecks to innovation and business agility.
Rather than doing 1:1 upgrade projects, many banks will take the modernization move as a chance to rethink the role of various channel systems and their interoperability.
Drive to digital should be seen as a broad initiative to digitalize consumer facing processes, to better orchestrate consumer experience across channels, and to leverage data in order to surgically insert humans (bankers, sales associates, etc.) into the experience when and where they can add the most value to deepen and grow the relationship.
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