Digital-only challenger financial institutions have changed customer expectations, including customer service and how customers want to use financial products. They have shown us what is possible with a nimble, tech-driven financial institution. Here are three ways digital-only financial institutions are responding to customer expectations better than their traditional counterparts:
- Building online marketplaces — a marketplace model lets the financial institutions grow their product offerings without having to develop them from scratch. It’s a concept that has been missing in banking for a long time: an Amazon-like platform that lets financial institutions offer other providers’ financial products and services without having to establish individual partnerships or one-off integrations.
- Providing products for travelers and mobile workers — many customers need to be able to easily move between countries. Revolut now offer customers the chance to open a multi-currency account for minimal fees, something traditional financial institutions often find difficult to do. Additionally, they also give customers the chance to access a range of additional services relevant to their lifestyle, such as travel insurance and free unlimited foreign exchange transactions.
- Making customers part of the product — customer experience is key in the digital-banking world. But just because digital-only financial institutions do not have a branch, it does not mean that they are not interesting in interacting with their customers. Most digital-only financial institutions routinely seek customer feedback to make sure their products and services meet all their customers’ needs.