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Banking on a New Era

In banking and finance, customer tastes are rapidly evolving in response to technological change.

Banking on a New Era

Like many industries, the banking and finance sector is being continuously disrupted by technological innovation and rapidly evolving customer expectations. In this exclusive video, Trent Fulcher, head of strategy for Kiwibank, provides insight into the ways the sector should respond to emerging challenges such as peer-to-peer lending facilities.

The next competitive battleground is who uses their business intelligence most effectively, not only to compete with the existing competitors but also to take it that one step further and figure out what consumer-based trends are coming that we can respond to and adapt to.

Telstra IN:SIGHT - Banking on a New Era

[Transcript]

Trent FulcherHead of StrategyKiwibank

What are the challenges currently being faced by the banking sector and how should leaders in the industry respond?

We’re seeing three main areas under attack or being disrupted globally: payments; traditional merchant services; and the lending space. Payments and lending are probably the two being [affected] the most at the moment.

One of the challenges we have as a financial services organisation is understanding the voice of the consumer with all this new technology available.

Lending is interesting because you’ve got peer-to-peer lending and crowd sourcing. A lot of those models are quite successful in the UK and in the US. In fact, in the UK I think about 12 per cent of the lending is now going through these types of entities. [They’re] just starting to happen here in Australia and New Zealand and the traditional banks are not only not set up to counter those, they’re also not reacting in a way they probably should, which is [to say] let’s collaborate with these new entrants and figure out a way so we’re not cannibalising our revenue.

The next competitive battleground is who uses their business intelligence most effectively, not only to compete with the existing competitors but also to take it that one step further and figure out what consumer-based trends are coming that we can respond to and adapt to.

If we don’t have a solid handle on the voice of the customer – the voice of the market – and use the insights we can get from the data on a daily basis, then we’re absolutely behind the 8-ball.

We’re [approaching] this now [by asking] how can we build a customer ecosystem that will allow us to add value to the customers in new ways. And that ecosystem we don’t necessarily have to own, we just have to be an enabler of it. Just wanting to have the customer loyal because they have as many products and services from our organisation as [possible] might have worked 10 years ago, but now customers are loyal because they believe in your brand, they believe in the cause your brand stands for and they truly believe you’re adding value to them, either [through] the existing products and services you sell or [through] other services from third parties that could help them.

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