The emergence of the so-called “platform economy” has brought a new trend to the financial services industry. Vipin Kalra, chief executive officer of BankBazaar International, discusses how financial brands can leverage the move to platforms to further market their products and strengthen their brands.
November 28, 2017 | Vipin Kalra
- Kalra stated that banks need to prepare for the potential challenges due to a changing financial ecosystem
- The advent of the platform economy, which brought in one of the biggest changes in consumer purchase behaviour, has also began to disrupt the financial services industry
- Banks can leverage the move to platforms through opportunities including: focussed digital spending, using data analytics to customise offers, and seamless customer experience
Look up any brand study over the last few years, chances are some of the top brands belong to the financial services industry, particularly in Asia. In Singapore, DBS, OCBC and UOB make it to the top of the list, while in Indonesia, Bank Central Asia and Bank Rakyat Indonesia are the most valuable. In Malaysia, Maybank, CIMB and Public Bank make the list of top ten most valuable brands.
Banks have been able to build powerful brands over the years because of their extensive network and the strong trust customers have placed in them. However, some studies and reports have noted that while consumers’ trust in banks continue to remain high over the years, non-traditional providers have received parity on the foundational dimensions of trust and moved ahead on relationship-driven and differentiating dimensions of trust that matter most. As such, even though banks have strong brand value, they need to gear up to face the challenges presented by a changing financial ecosystem.
One of the biggest changes in consumer purchase behaviour is being brought in by the emergence of the platform economy. Online market places such as Amazon are becoming the go-to site for consumers faced with more choices. We are beginning to see the same trend in the financial services industry. According to a report on disruptive forces transforming financial services, prepared by the World Economic Forum with support from Deloitte, “platforms that offer the ability to engage with differen...
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Categories: Financial Technology
, Retail Banking
, Technology & Operations
Keywords: BankBazaar International
, Platform Economy