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The Digital Tipping Point

New Reasons for Retail Banking

The Situation

Leading retail banking executives project that by 2019 banks will need to make roughly half of all sales using digital capability that does not exist today.  

Today's consumers are already primed for this, but most banks have not caught up.

Consumers are continuously connected to a vast array of resources they use to manage their lives.  They define financial goals, explore options, select solutions, and stay on track without any value-added help from a bank.  

Complete the form to learn how leading financial institutions are adjusting strategy, processes, and offerings to meet this Digital Tipping Point head on.


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1. A New Reason for Purchase

For years, consumers were most often motivated to buy a financial product when they had a life event.  Now consumers learn about product needs while engaged in "constant goal seeking" on their digital network, not a bank's network.

Banks that wait for these consumers on their new digital channels the way they once waited in a branch are neither a part of the consumer's natural learning process, nor their consideration set.

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2. A New Reason for Loyalty

Traditionally consumers conslidated business for ease of banking at a single location.  Today's networked consumer can have a similar one-stop-shop experience, and enjoy best-in-breed solutions for every need, by managing multiple providers on a single device.  

As a result, digital consumers are 60% less likely to consolidate all of their products at a single institution than non-digital consumers.  

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3. A New-in-Kind Relationship

Consumers expect providers to join their banking process as they engage in it, understand the situations as they unfold, immediately connect the capability or advice the consumer needs to move forward, and then monitor the impact - intervening as necessary to help them stay on track.  

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4. A New Call for Leadership

Shifting adequate resources from replenishing a bank's past to reinventing its future will require clear strategic direction rooted in painful choices not to do some worthy things.   

Rather than pursuing a myriad of technology projects with short-term ROI, banks need to re-prioritize based on strategic imperatives.