The following article written by ForeSee VP and Retail Bank Practice Leader Jason Conrad was first published on The Financial Brand.
Pretty much everyone agrees on this: Millennials don’t find traditional banks very appealing. In fact, the vast majority of Milliennials (71%) would prefer to visit the dentist than a bank. So it’s no wonder that a wave of new fintech apps and services have so easily found the traction that they have. The success of fintech startups has been largely driven by their ability to capitalize on Millennials’ dissatisfaction, allowing consumers to sidestep traditional banking providers if/when their expectations aren’t met.
But traditional institutions shouldn’t just throw in the towel. Those with a commitment to measuring and improving the customer experience of banking consumers will be in a good position to fight back against this wave of fintech insurgents. Here are five ways they can fight back.
1) Quick money transfer apps
Almost everyone is familiar with the frustrations involved with trying to transfer money from your personal bank account to someone else. A few years ago, completing a money transfer in under five minutes would be essentially impossible. But even with all the technology we have at our disposal today, it can still be incredibly difficult for a consumer to use the technology available at their primary bank.
But a new crop of services emerged to take the pain out of transfers. PayPal’s Venmo, Square Cash, and others like them allow consumers to link their credit cards or bank accounts and make quick P2P transfers. While set up takes a bit of time (and all parties involved in a transaction must be signed up for the service), repeat use makes paying friends back for things movie tickets or last night’s round of beers extremely quick and easy.
Millennials have come to expect such an experience. Many banks and credit unions are starting to realize this, but they’re a little behind the eight ball. For instance, traditional institutions (including Bank of America, PNC, Chase and others) are working on Zelle, a Venmo-like app created to work with traditional banks and credit unions…
Read Jason’s entire article via The Financial Brand: 5 Fintech Trends Disrupting Retail Banking (And How Banks Can Fight Back)