The Future of Money Management
Consumers are seeking financial support now more than ever and financial services have a unique window of opportunity to form lifelong relationships with their customers by providing money management solutions that help them meet their goals.
We have created a three part series which delves into the opportunity in saving and investing and how banks can launch their own leading money management propositions. Part one of our three-part series is now available for download here.
Check out these short clips of our Head of Strategy and Partnerships, Nikolai Hack, giving sneak previews into part one - the opportunity in savings and investments.
Introduction to the Future of Money Management
It’s no secret that many established financial services business models are under immense pressure.
From unfavourable macro environmental factors and increased competition from challengers to complex legacy technology that holds you back, incumbents really are under the gun.
In order to win or just survive, firms will need to address all of these issues at the same time.
A challenge yes - is it possible to tackle it, yes absolutely.
The future of money management; it’s the way customers experience and access financial propositions. It requires incumbents to shift to a customer-first mindset, shift to a digital-first business model and also have the foresight to jump on new opportunities that present themselves.
In this three-part series we will focus in on unlocking new revenue through saving and investing propositions.
We start with a deep-dive into how you can serve new customers’ needs. We will talk about what technological approach will successfully get you there, and we will also show how you can go to market fast.
The benefits of adopting a digital-first business model
Successfully preparing for the future of money management means tackling multiple issues at once.
- Reacting to macro environmental stressors that affect your bottom line and your ability to generate revenue.
- Adapting to changing client needs to prevent loss of market share and attacks from challengers.
- Undoing your internal efficiency blockers that stand in the way of substantial and real innovation.
Sounds hard - true. But there are ways you can go about doing something about these challenges. There are others who are doing it already.
At the core it is about going from a merely digital operating model to a truly digital first business model.
This will allow you to put customers at the heart of the organisation - and most of all: start thinking client first.
The current state of saving and investment propositions
It is no secret that many established financial services business models are under immense pressure. Most of all they are facing challenges in three key areas.
From outside the industry, their financial performance is under pressure. Low, zero, or even negative central bank interest rates make it costly to maintain a bloated balance sheet. As a result, the potential to affect the financial bottom line is tightly capped by thin margins of balance sheet related activities.
Within the industry, there is increased competition on UX and price. Digital-first platforms from tech and challenger brands are entering the finance space with superior customer experiences. Often, these propositions are offering previously chargeable services for free, while regulation has additionally increased transparency around fees and costs.
Finally, within Organisations, you have internal efficiency bottlenecks. Increasing layers of regulation continue to add headcount and divert resources from client-servicing to compliance-adherence. This is made worse, by legacy-heavy infrastructures and oftentimes a prolonged underinvestment in technology, both standing in the way of cost-reducing innovation.
Interested in learning more about the future of money management? Sign up for the series.