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Chris/Jan,

Interesting to see how the economics of coffee shops seem to imply much more than just lattes and cappuccinos. As an international traveler I often note how I am penalized because I can't get local data contracts, etc. Given the mobility of business people, and the mobility of workforce, connectivity is really becoming almost a basic right or need isn't it...

Brett King, Author - BANK 2.0

I think also that multi-channel support is a massive issue and trend shaping retail banking in particular. Solving the issue means that not only do banks need to become client-centric, but channel agnostic. This requires a fundamental adjustment to metrics, strategy, organization structure and such. Probably, beyond re-assessing the fundamentals, this is probably the most accute challenge banks will have to tackle in the next 5-10 years.

The branch-centric approach to the retail organization structure is problematic when 90% of your customer interactions are non-branch.

James (Javelin),

Agree that prior behaviour can be a predictor of future activity - I think what we are seeing though is that prior behaviour is not staying static. Just because 10 years ago branch was your primary channel, doesn't mean it still is today - brand loyalty or not. That's why mobile, internet and social media are having such disruptive effects today on the total customer approach to banking.

When you look at the psychology behind 'relocation' for example - convenience is a core element to that decision, and when consumers look at the most convenient ways to bank today - branch is not necessarily what comes to mind.

Let's just say - multi-channel behaviour in banking is certainly not going to stand still over the coming years, and as a banker if you expect that the mix in terms of channel activity will stay static, or that you can encourage a return to branch, you're in for a shock.

Brett King, Author - BANK 2.0

Roger,

I think this view is terribly naive, the fact is cheques are in terminal decline, debit card usage is climbing rapidly, once NFC and P2P payments are the norm cash will drop off too. We don't need to keep outdated, archaic modalities of payment to be safe, reliable and secure - we just need the appropriate investment in the infrastructure.

Cash and cheques will NOT be around for a long time to come. The key reason is when you can simply touch your phone to a POS terminal or another phone to make a payment, why on earth would you go back to a physical paper process?

Brett King - Author, BANK 2.0

Peter,

I'm not sure that security is not a key factor as to why consumers, in particular, are not using Internet Banking more. However, there are clearly opportunities for simple security improvements. For example, the lack of robust two-factor authentication in the UK market is shocking, and a key reason why phishing attacks are still succeeding.

The key issue, I believe, is simply as you've identified - the lack of investment in online banking making it more than just a cost savings tool for the bank. The core investment needs to be around simplicity and user experience.

Recent developments like Ally bank, BankSimple, and others show that this can be done. The lack of investment in this space by mainstream banks shows how out of touch they are with changing consumer behavior. So I believe you are right in assessing that by investing in this space, they'll also generate higher trust and advocacy.

Brett King, Author - BANK 2.0 

Chris,

You are right that there are legacy system issues, but that is hardly a justification given the rate of change we are experiencing in customer engagement and interaction these days. The fact that such things are so set in stone and difficult to change illustrates the capability of banks to absorb innovation in the customer experience - basically almost non-existent.

It's time for a shakeup in channel management!

BK

Liz,

I think it will get increasingly difficult as banking becomes detached from banks to enforce a view that a wrapper on banking or the deliver of a product or service is 'risky' because it's not attached at the front-end to a real bank. While I accept that there is some loyalty to banks, there is plenty of room for new players. Look at the mortgage brokerage business, eTrading, etc to see how the retail space has fragmented beyond just 'real' banks just in the last decade or so.

As mobile, social media, BANK 2.0 heats up - its going to be impossible for banks to differentiate purely on the basis that they are 'real'.

Brett King, Author - BANK 2.0

Paul,

Thanks for the mention. I agree card management is part of the experience challenge. 

I envisage a time in the not too far future when cards are integrated into the mobile handset. Then we'll have some very, very interesting CX.

BK

Just imagine if banks actually embraced the technology!

Steve,

Suggests that there is a divided between the digital persona and the person?

BK