There was a time when people used to depend on advisors or agents for all their small or big investment decisions as well as transactions. But now, from banking to share trading, every aspect of financial services has changed. We are seeing more and more power in the hands of investors themselves. These developments have given a whole new meaning to the term customer-centric business in the context of financial services. Let us look at some of the most disruptive changes that we are already seeing.
1. UX Personalized
In the world of retail, Amazon is already there with some stores that do not have any cashier for checkout. The shopper has to only pick up the stuff she needs, and the bar code will ensure that the amounts are billed to the e-wallet. Financial service providers like https://www.etoro.com/ are trying to provide a similar level of personalization. These are for those who wish to trade in stocks online. In the world of financial services, you will now get several options where you can take your own decisions when you want to. You can also get personalized recommendations when you need them. These recommendations are not just based on the financial indicators, but they are also based on your data and behavior patterns. Recognizing them you can get recommendations that fit into your risk-taking profile.
2. Newer Sources of Data
The data sources of today are getting wider in their reach and scope. This makes the recommendations much more pertinent. Social media behavior patterns are a rich source of usable data. For most of our drives, we switch on our GPS. This allows our movements to be tracked and recorded. Data is now available in humongous quantities everywhere. But for financial services to be truly customer-centric, the correct data needs to be mined which can give useful insights. The usual way of getting and using data used to be from outside to inside. So earlier, data that was needed for pushing a particular financial service was used. But now customer-centric data means that the start is from what the customer needs.
3. From Products to Solutions
There was a time when financial service portals or banking websites used to transact by individual financial product. The messaging to the client as well as the transaction windows used to be arranged by product. But we have moved on to a more customer-centric model now. Today, everything is geared towards providing a complete solution to the client. That solution could include a number of products or it could just have a single product. But the conversation has changed to what the customer wants, and the intent is to provide a comprehensive solution.
4. Location Neutral
One of the biggest game changers has been the ability of investors to transact from anywhere. We have gone beyond those days of having to fill up paperwork or submit IDs while investing. To be fair, this has been around for a few years. People have been transacting on desktops and laptops for some years now. But mobile-friendly apps and websites have made things even simpler. People now do not even have to wait till they get back home from work. Transactions can be done at any time and from anywhere.
5. Educated Investors
We spoke at the beginning of this post that advisors are less asked for now. That is just one outcome of having more educated investors. People are more than willing to go the extra mile to educate themselves, gather news, and perceive trends. There are many websites available which can provide education regarding the correct way to invest. That is why today’s investors are so much more empowered. This has been one of the biggest changes in the financial services sector in recent times. There is more information available, and there are more people willing to search for that information.
All the above trends in the world of financial services have really democratized the industry a lot. There is now more of a level playing field. People can educate themselves or take advantage of the improved user experiences available. Every activity and effort of financial service providers try to make the offering more customer-centric. Companies have realized that being customer focussed is no longer enough today. They need to run a customer-centric business.