Brett King is a Hong Kong-based financial services technology consultant, president of his own firm User Strategy, and a firm believer that American banks are behind the eight-ball when it comes to the innovation imperative.
BTN: So give us a preview, what's going to happen next?
BK: Banking models are broken because consumer behavior has changed so significantly that the traditional model doesn't work. ...What is happening as a result of customer behavior shift and these new phones and new Internet-enabled things like PayPal, social lending networks...all of these things are separating customers away from the bank. So companies like Apple are taking control of the customer and banks are just becoming just the wires-the network that enables transactions -but they're losing control of the customer interface because they're not innovating fast enough.
So either banks have to be extremely innovative and very aggressive from this point on, or they're just going to end up being the back-end service provider and the wires in the network that actually process transactions. And what's going to happen is other organizations are going to take control of the customer experience and take the value of the margin away from the engagement.
Not sure it's just about banks not innovating fast enough? There has been a comprehensive exploitation of customer loyalty in retail banking that needs to be addressed by significantly more than cutsie adverts.
Retail banking is predominantly a basic and NOT a premium sector and it damned well needs to wake up to what consumers want, rather than consistently trying to acquire our incomes by dubious and deceptive means.
As to all the financial literacy and capability yada yada - it's a nonsense - no better than the Emperor's New Clothes. There are plenty of bright enough people out there who just don't get all the rates and the small print and frankly need to get on with innovating, inventing and creating what will really bring prosperity to our society.
Read all of Brett's interview here:
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