Value-Added Services (VAS): the new banking battlefield

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Value-Added Services (VAS) is the new banking battlefield

Nowadays, it is hard to find a bank or FinTech unaware of the importance and impact of digitalization on the financial sector. For years, the focus was put on a simple transition of traditional banking operations from branches through the internet and then through mobile channels. However, as customers’ needs have evolved, it has become clear that clients expect digital customer experience vastly exceeding basic “branch” functionalities. In other words, simply putting a branch into the internet or mobile channel was not good enough.

Executive Summary

The pressure to move beyond banking comes not only from clients, but also from two other sources.

Firstly, it is fueled by incumbents searching to differentiate. Our recent research has shown that only 20 percent of retail customers believe that digital channels differ significantly between banking institutions.

Secondly, regulators force banks to open up their infrastructure to third parties (e.g. PSD2). As a result, banks have been keen to look for differentiation opportunities outside of the traditional banking realm, mainly in nonfinancial services that focus on beyond-banking functionalities; value-added services.

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Performance magazine issue 31, January 2020

Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.

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