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One-Third of FIs Don’t See Digital Disruption Risk: Cisco
Despite the growth in mobile payments, mobile financial services and digital banking options, a large percentage of bank CEOs don’t recognize the digital disruption occurring in the industry, Joseph Bradley, Cisco vice president, IoE global practice, tells Mobile Marketing & Technology.
According to Cisco’s research, four of today’s top 10 financial service incumbents (based on market share) will be displaced by digital disruption in the next five years. Yet traditional financial services firms are reacting to the threat too slowly, according to Bradley. On-third of financial services companies do not acknowledge the risk or have not addressed it sufficiently.
Cisco research shows that 41 percent of financial services firms are taking a “wait and see” approach in hopes of emulating successful competitors. Only 27 percent have a plan and are willing to disrupt themselves in order to compete.
Banks need to make mobile apps convenient for the user, with personalized features and communications, Bradley says, recommending click to chat and click to video chat buttons. With such features, the user can easily and seamlessly connect with an agent/banker when he or she needs additional information than can be offered through the mobile channel, Bradley explains. Such features enable the agent/banker to push documents to customers and to provide additional guidance for the app itself or on specific products and services.
Without such features, users will abandon the mobile channel when they run into challenges such as needing additional direction or information.
Cisco also recommends that to remain relevant and to be competitive, financial institutions should:
- Map out the digital disruptors by business area and geography
- Raise the C-suite and board awareness of threats to the business
- Develop and execute a digital transformation program, working closely with trusted technology partners and C-suite leadership.
- Form digital leadership teams, set standards and hold people accountable
Source: http://mobilemarketingandtechnology.com/2015/11/05/one-third-of-fis-dont-see-digital-disruption-risk-cisco/
