“Over 48% consumers TRUST banks the most as their mobile banking provider, when compared to other providers such as payments systems, mobile operators, retailers and technology companies who are all trying to win the war of mobile wallet.” – Lexis Research
Mobile commerce and payments are fast growing trends. Mobile wallet is becoming one of the most fiercely competitive markets ever. The stakes are higher since a Mobile Wallet has become a key vehicle to deliver personalized coupons, product offers and rewards based on consumer’s location and other behavioral preferences.
Threats and Opportunities for Banks:
As the banking industry collides with the wave of mobility, several key challenges are looming for the banks to remain relevant:
- 38% of banks segment their customers once a year and many others don’t segment at all. How can anyone win the Mobile Wallet war if so little is known about the customer? How can banks compete in the Mobile Wallet war if they rely on static and incomplete information about its customers that could potentially be a year or older?
- “One third of consumers (31%) would SERIOUSLY consider, or indeed PREFER getting their mobile banking from someone other than their existing bank. That’s six million customers, theoretically, willing to switch banks if the mobile banking offer was right.” – The competitive threats are looming as illustrated by Lexis research in their Wallet War report.
- How do banks retain the role as an intermediary without losing the mobile banking war to technology companies like Google, or others?
Engaging customers across all touch points of interaction is critical for banks to build the intimacy and deliver a superior customer experience. Deep customer know-how can help you deliver just what the customers are thinking about and build strong brand loyalty. Do the banks have the right data to know their customers so well?
Banks have more data about their consumers than companies such as Google, and Amazon who have revolutionized consumer intelligence and one-to-one targeting. However the state of this data prohibits banks to really understand and serve their customers well. Banks possess a lot of dark data that is locked and underutilized due to the complexity of integration and aggregation. Unlike Amazon or Google, banks are not able to leverage the variety of structured and unstructured data from various internal and external sources – including operations data, loyalty programs data, social data and web click-streams. More importantly, most of the data currently utilized for analyzing customers is static, batch-mode and outdated. This data is often irrelevant to the customer’s current context and behavior.
How can banks tap into this massive data and change the game by truly knowing their customer well and in real-time? How can they turn the competitive Wallet War into a competitive advantage?
Big Data: Turn Competitive Threats into Opportunities:
Leveraging Big Data can change the game for the banks. By tapping into Big Data, Banks can unlock the goldmine of structured dark datathat resides within the enterprise – consumer’s purchase histories, shopping habits, frequency, and loyalty information. Big Data also allows Banks to gather and analyze unstructured data from sources, including web click-streams and contextual information, such as location and social interactions like Tweeter feeds. Using an interactive Big Data Management solution, a bank can get a continuous, 360 degree view of the consumer and know their customers better. These insights can allow banks to turn the Mobile Wallets into a competitive advantage and deliver personalized product offers, coupons and content based on deep insights coming from their purchase histories, buying habits, brand loyalties and location. In a nutshell, with the proper interactive Big Data management solution, banks can gain real-time insights into their customers to delight them by delivering a superior experience across all touch points.
Are you ready to move down this path? Want to know more? Download this whitepaper to learn about how banks can leverage Big Data to transform the Mobile Wallet and gain significant competitive advantage.
