Relationship Building in the Digital Age
As you’ve tuned into your favorite TV show, streaming service, or sports game recently, have you noticed all the ads for apps which improve the way money moves in people’s lives? With each break in your regularly programmed service, you’ll see commercials for apps that claim they can give people their paychecks two days early, get micro loans at low cost, customize credit card rewards, buy now and pay later at local merchants, help build good credit. The way money moves has changed. Consumers don’t depend on logging into online banking to view or move their money. Money movement, or more precisely value delivery, comes to them. These many standalone apps don’t require minimum balances, high balance loans, long term membership, or ‘wallet share’ in exchange for loyalty or reward. The technology advertised by names like Chime, Dave, Monarch, and even Capital One are a crucial shift in strategy and operations, which we believe should inform your strategic initiatives and operational projects if you’re committed to relevance in the era of digital financial services.
The reality is traditional online and mobile banking platforms are no longer the primary tool consumers use to manage their finances. The way money moves through people’s world is now a matter of value delivery and digital engagement. These value-add applications cater to those changes in consumer behavior.
You may be asking why these standalone applications are emerging in our industry? And, we hope you’re asking how your institution can step into this digital era of community?
We’ll let you in a secret … the answer, is data.
One thing is clear, if you look at the level of attention these apps get from your consumers in your community, there is no question about it….traditional online and mobile banking is dead. The aim here is not to say your institution should stop offering online and mobile banking, however, there is a clear need for an alternative to online and mobile banking platforms. An alternative that processes transactions but also fosters consumer interaction and value. A path forward to create additional, new, non-traditional interactions that are valuable to your consumers and monetizable for your institution through the aggregation and consolidation of relationship data.
Such is the way of modern business, right? Collect information, innovate, interact, repeat!
By now we hope you are asking yourself: What are those value add interactions? How can my online and mobile experience extend that exchange of value? And, the way to answer those questions isn’t by conjecture or opinion, it’s by data; data that’s acquired through execution of a modern strategy, backed by an optimized operation, and extended through technology tuned specifically for the control, centralization, and extension of data you have collected and used to identify these new and exciting ways in which consumers are looking to interact and exchange value with you. Just take a quick look at some of the data you already have at your disposal- query your debit card transaction history and identify the top five most popular merchants that your membership is interacting with. That small and partial segment of data tells a really big story. Imagine what stories will be told when you’ve tuned your operation to capture an even greater mass of consumer data!
In summary, if your member is looking to get paid early, earn rewards, take advantage of low cash modes, or acquire a micro loan, should they download one of these standalone e-commerce apps or access their account through their local, trusted, community FI?
If you recall the secret we let you in on earlier, the way in which you open this door of opportunities, the key, is data. The solution is not to go to your online banking vendor who is holding your data hostage and ask for a shiny, new enhancement. If your institution focuses on collecting your consumer data and then understanding how to use the data you have collected, YOU are now the one in the best position to decide if a consumer should be able to purchase an item now and pay later or provide them the benefit of getting their paycheck two days early.
Community FI’s have the ability to engage with members the way these apps are, but only if it starts with a strategy focused on data, and results in an operation transformed to support the extension of data across digital channels.
Three successive steps to move your institution beyond traditional thinking of treating money as a static pool living in your core.
The Formula for Relevance: 1/3 modern
strategy + 1/3 optimized operation + 1/3 frictionless digital interactions.
So, let’s simplify the complex. DaLand has created the way for your local, trusted institution to interact with your community, using data to provide valuable experiences extended right from your core. Our Strategy Planning, Strategy Mapping, and Strategy Protection products, in combination with our C.O.D.E. Engine drives the synthesis of business strategy and technology, and connects your operation to our powerful system of digital portals to ensure your institution delivers the future of commerce, and remains the nexus of your community.
The result? Increased engagement, loyalty, and retention of YOUR consumers in YOUR community.
So, as we all prepare to close out 2021 and dive into another stimulating year of industry innovation, we are excited at the opportunity to collaborate and converse with you around these types of strategic opportunities, aligning operations and digital solutions that intersect your future to these highly potent industry dynamics.
Until such time as you might reach out, we encourage you to take a look at our website, blogs, and social media posts focused on manufacturing relevance in the Community FI industry. We look forward to journeying with you, soon.