Finance Monthly December 2019 Edition

ust look at howmuch the banking industry has changed over the past 50+ years. From the arrival in London of the first automatic teller machine in 1967, to the launch of the first banking websites in the mid-nineties, to the emergence of digital-only banks — also known as neo-banks — the banking industry has significantly transformed and will continue to do so in the years ahead. I can even remember a time that I carried around a bank book and waited in line after work, or on my lunch break, to withdraw or deposit money, ask a question or solve a problem. Those kinds of interactions were personal, but in 2019, it’s become difficult to imagine leaving my office or home to speak with a customer service agent in person when I can easily connect with a representative online. It’s no wonder digital transformation is top of mind for today’s financial companies as they work to upgrade their business models, products and services with next- gen technologies. Today’s young consumers gravitate toward mobile utility, with Millennials and Gen Zers preferring to handle their banking via digital means first, then in branch if necessary. To drive this point home — by the end of July of this year, neo-banks, such as Chime, Empower and Aspiration, had secured $2.5 billion in venture capital funding, according to CB insights. Modern consumers don’t just expect a seamless customer experience, they also demand personalisation and transparency. A growing familiarity with mobile technologies and social media makes them more likely to interact with banks through digital platforms. It stands to reason that traditional banks should be reinventing their customer experience to satisfy consumers’ wants and needs. Customer engagement isn’t what it used to be in the financial services industry. To quote Bob Dylan: ‘The times they are a-changin’. In the digital era, consumer behaviour, attitudes and their channel preferences through which they interact with brands are all evolving to reflect a growing reliance on digital technologies. J STARTING FROM DIGITAL VS. TRANSFORMING TO DIGITAL A TALE OF TWO CITIES: Chuck Koskovich, Chief Operating Officer TELUS International www.telusinternational.com 38 www.finance-monthly.com FINANCIAL INNOVATION & FINTECH - STARTING FROM DIGITAL VS. TRANSFORMING TO DIGITAL