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The gap between digital and physical no longer exists
Tomorrow is Today
Whereas online banking is popular in our country, mobile banking is less widespread. Scarcely one fifth of Belgian smartphone owners use their mobile device for banking operations today. This puts our country below the European average, even if this percentage is growing day by day. These customers are connected to the entire planet, they are everywhere and always online, and expect to get quality service when they need it. Space and time no longer exist in their eyes.
“To fully leverage digital potential, changes will be required from the inside”
Cédric Deleuze, Director Deloitte Digital
The consequences of this development are already becoming very clear in the sale of music, books, travel, etc. Customers want everything, and they want it now. They themselves search for information and base their decision on the experiences of their peers, even if they hardly know them. The expert is no longer, and has not been for quite some time, their first point of contact. The waiting time for a custom solution is zero: yesterday, rather than today.
Similarly, new players are changing the financial landscape radically. They are invariably original, inventive and faster when it comes to meeting the customer’s needs. Operators such as PayPal target the payment traffic, but also want to provide immediate loans. For its part, Kickstart provides a platform that enables starters to raise funds. Paying with a smartphone in a supermarket is no longer science fiction, while the Apple Watch checks your location and your state of health continuously.
Meeting the customer’s expectations
In the new reality, financial organisations are seeking a better approach to continue to meet the increasingly higher expectations of their customers. ”Online and mobile banking are increasingly important for banks,“ explains Vincent Fosty, Partner and Digital Leader at Deloitte. ”This enables them to cut costs and improve productivity, but also results in the banks losing the physical contact with the customer.”
”The solution is a multi-channel approach: using a mobile telephone to pay the bill in a restaurant, to do online banking from the comfort of an armchair, to obtain advice from an insurance broker or an expert at the bank branch or via the telecentre and, tomorrow, even via video conference. All these things should ultimately be possible, perhaps even round the clock. Interconnecting seamlessly.“
Beyond the apps…
Offering customers easy access to new functionalities through smartphones, tablets and other mobile devices is unquestionably an attractive prospect. But unless they are part of an overall digital strategy, apps will in and of themselves have little impact on banking activities.
The sector is still quite a way from capitalising on the potential of these technologies. Most banks and most insurance companies have mobile applications. A recent study by Deloitte has however shown that a very high percentage of the people questioned are not familiar with the available applications. Furthermore, many of those who do know about them are still hesitating for reasons to do with security, the protection of privacy, or ease of use.
Unless apps are part of an overall digital strategy, they will in and of themselves have little impact on banking activities
Banks have an imperative to transform their organisation
So far, changes in the industry have not been too disruptive and the focus has clearly been on the outside – the customer facing side. Very few companies have fundamentally changed internal organisations or governing principles. Globally, many banks continue to rely on core legacy IT systems implemented in the 1970s and 1980s. Such legacy systems impede the ability to have a unified view of data across silos and reduce considerably the ability to evolve quickly.
Cedric Deleuze, Director Deloitte Digital: “To fully leverage digital potential, changes will be required from the inside: the underlying operating model needs to be reshaped, with a lean organisational structure and agile work methods and culture in place. Digital banking will also change the way revenue is being generated, so new structures for revenue and pricing also need to be addressed. All these shifts will bring opportunities to get something valuable in return: delighted customers.”
Digital banking will also change the way revenue is being generated, so new structures for revenue and pricing also need to be addressed
De kloof tussen digitaal en fysiek bestaat niet meer
Hoewel onlinebankieren populair is in ons land, hinkt mobile banking nog ietwat achter -op. Amper een vijfde van de Belgische smart-phonebezitters gebruikt vandaag zijn mobiel toestel voor bankverrichtingen. Daarmee scoren we onder het Europese gemiddelde, ook al groeit dit percentage dag na dag. Deze klanten zijn met de hele wereld ver bonden, ze zijn overal en altijd online en verwachten een sterke service waar en wanneer zij het willen. Ruimte en tijd bestaan voor hen niet meer.
‘Le fossé entre numérique et physique n'existe plus'
Si l'online banking est populaire dans notre pays, le mobile banking est lui moins répandu. Ainsi, à peine un cinquième des possesseurs belges de smartphone utilisent aujourd'hui leur appareil mobile pour effectuer des opérations bancaires. Ce faisant, notre pays se situe en dessous de la moyenne européenne, même si ce pourcentage augmente de jour en jour. Ces clients sont connectés à l'ensemble de la planète, ils sont partout et toujours en ligne et s'attendent à un service de qualité où et quand ils le souhaitent. L'espace et le temps n'existent plus à leurs yeux.