Snacks, Lunches and Fine Dining - A Fiserv Perspective
Information convergence, interaction specialization and the importance of integrated channels
The way financial institutions deliver services across banking channels is being profoundly impacted by two significant shifts.
First, there is a demand for "information convergence" across channels. Consumers expect information about transactions completed via one channel to be readily accessible via another, and expect to be able to initiate a transaction in one channel and complete it in another.
Second, there is a significant degree of "interaction specialization" taking place within each channel. This interaction specialization is driven by the unique properties of each channel, which determine the primary activities conducted through the channel.
Consumers have different habits and preferences about which channels they use to accomplish different financial tasks. For day-to-day needs, consumers generally prefer self-service via digital channels — mobile and online – respectively, the fastest growing channels.
Fiserv characterizes interaction via the mobile channel as "snacking." From a financial services perspective snacking encompasses frequent interactions that take less than 60 seconds. This includes tasks such as checking balances, receiving alerts and paying bills. One Fiserv financial institution client sees an average of 26 logins to mobile banking per user, per month — proof of their desire to consume financial services information in quick, frequent servings via the mobile channel.
The snacking analogy can be extended to the online channel and to the branch as well. The online channel serves up the financial equivalent of a square meal. Consumers go online when more browsing and a slightly deeper level of engagement is required. This includes tasks such as comparing products, managing budgets and setting up preferences. These types of activities usually occur on a weekly or monthly basis.
The branch is for fine dining, those special occasions where more personal service and in-depth interaction is required. This includes advisory services and overall relationship management, encompassing critical decisions that require consultation and typically occur infrequently.
As a leading global provider of digital channel solutions for financial institutions, Fiserv perceives that the shifts toward information convergence and interaction specialization will create challenges for financial institutions. Delivering consistent information across channels will require back-end integration and real-time functionalities that are often not in place today. This will be further compounded by device proliferation, the rise of tablet computing and the blurring of lines between social media as an interaction platform and a transaction platform.
In addition, interaction specialization will require that financial institutions tailor services for specific channels. This will most impact services delivered via the mobile device, as financial institutions will be expected to support "mobile-only" services such as remote deposit capture for checks, location-based offers and contactless payments via near-field communications (NFC) technologies.
Beyond self-service, the mobile device is also likely to become a banking platform for different types of interactions. In this context, financial institutions are under attack from nontraditional players — such as mobile operators and consumer brands like Apple — that would like to gain access to both customer information and transaction revenue.
Financial institutions have much to consider when it comes to effectively serving consumers. An integrated channel strategy that incorporates the unique attributes of mobile solutions as part of an overall approach is a winning strategy.