In the past, financial institutions prized a well-established brand as the ultimate goal for attracting consumers and maintaining consumer loyalty. In the digital and open banking age, however, consumers are looking for more than just a familiar brand. Here are 3 ways for financial institutions to achieve ubiquity and grow consumer loyalty by shifting their focus from brand value and onto delivering consumer value.
- Open access to innovation – open banking necessitates a platform-centric model for innovation. It also greatly reduces the most time-consuming aspects of launching a new product/service (in-house development and testing time). In the era of open banking, it’s not about who can build the best offering, it’s about who can enable those capabilities in the fastest, most seamless manner.
- Data for personalization – personalization is becoming the primary driver in both consumer satisfaction and economic value in banking. Open banking allows data to be used by financial institutions and third parties to enhance digital systems, creating a more seamless and personalized experience for consumers.
- Swift entry into new markets – open banking opens doors to new markets and consumer sets previously too challenging or expensive to reach. By forming partnerships or leveraging third-party digital banking capabilities, financial institutions have an opportunity to expand their reaches in remote or underserved areas and break into new regions and geographies, all without having to expand their physical footprint.