The digital revolution has changed our lives in more ways than one. Social networks have transformed the way we communicate with each other. Online media consumption has meant we’re more informed than ever. The increase in bandwidth has meant we can consume music and video content faster than ever. But the real change for all of us has been the smartphone.
The smart phone is slowly replacing our wallets and purses, our diaries and watches to become the single most important tool in our day to day lives. A loss of a phone is rarely about the monetary value – it’s more the loss of music, photos, contacts and general disruption. For businesses, the smart phone has created an m-commerce culture, which enables the customer experience to be tailored.
M-banking has a lot of the big banks on the back foot. And it’s not surprising. For may banks the focus of the last five years has been on conduct issues, regulatory reform and trying to keep ageing legacy systems going. Building a digital model on the front end of core systems that were built well before the World Wide Web was a twinkle in the eye of Tim Berners Lee was never going to be easy. But it’s an issue that could really trip the banks up and prove to be the sticking point in terms of how successful they are in the future.
Look at the retail industry. The digital revolution claimed some very high profile scalps on the high street. HMV was pushed into administration by the rise of Napster and iTunes. Amazon saw off Borders and Woolworths. These were companies that didn’t have their eyes on the digital ball and paid the price. Banking is no more immune to digital disruption than music retail.
Cash has been in short supply for the banks. The crash led to major capital losses and eroded capital ratios that had to be raised to comply with Basel. This has led to small pockets of change rather than anything truly transformational. And m-banking needs to be transformational.
Customers don’t want bite-sized chunks of digital transformation. They want an app that covers all their banking services and they want it now. Banks have to transform, not just change. Go big or go home. Banks have to find the best minds in the business and give them the freedom to imagine a future unencumbered by legacy systems. Then just maybe they can look forward to a future of continued market dominance. If they don’t? Ask HMV.
Read how Certeco provided a quick and effective testing solution for a major mobile network card provider.
By Martin Dempsey, Client Director, Certeco