This is a roundup of industry news and links for the week of March 20th that have informed, entertained, and inspired us.
Here’s our weekly roundup of industry news:
Regulation, Not Fintech, Will Have the Biggest Impact on Banks – Regulation is still shaping banks’ strategic thinking, says a new study by The Economist Intelligence Unit. The unit surveyed 200 global banking executives to investigate the challenges retail banks face in the years to 2020.
In North America regulation was the top concern. “This year is marked by a sharp regional divergence about which rules will hurt most, and where,” according to the study. “In 2017 we expect the opening up of a new regulatory front to bring fintech under control.”
Customers Want to ‘Experiment’ With Bank Products – It’s all about customer-centric banking these days, and many banks manage to successfully maintain positive relationships with consumers. So why are those banks still losing customers?
A recent study by Forrester, a business management consultancy, suggests that a significant sector of consumers may just be bored of the bank’s same-old offerings and ready for new products.
Forrester identifies five U.S. customer segments based on consumer technology adoption and buying behavior: Progressive Pioneers, Savvy Seekers, Convenience Conformers, Settled Survivors, and Reserved Resisters.
Will your credit union be like Netflix? – Numerous companies that did not adjust to the changes in their industries are no longer with us. Kodak, Borders and Blockbuster come to mind. In hindsight, the disruption to their business model was obvious, yet they did not act in time. It is human nature to be in denial when dramatic change is required, but change is often required to survive.
In contrast, Netflix changed from a DVD delivery model to an online streaming model and the company has flourished.
Will your credit union be like Netflix, ready to make the key changes needed to flourish going forward?
Is Industry Coming Around to Robo-Advisor Concept? – Some financial experts see robo-advisors as a competing force.
At the NAPA 401(k) Summit, you might expect some hostility to the concept. After all, the market for algorithm-based, non-human decision-making robo-advisors is expected to grow.
P-to-P’s growth may leave banks behind: Report – The rapid advancement of social media platforms into the payments and finance markets, as well as millennials’ devotion to apps like Venmo, were major factors driving a 47% increase in the U.S. digital person-to-person payments market last year, according to a new report from Aite Group.