The second FinTech wave might answer that question. It’s less about reducing costs, and more about maximizing profit for customers.
Zenefits, the fastest growing business in the Silicon Valley in 2015, is a good example. An all-in-one platform for the personal sector, it stores co-worker master data, tracks working hours and holidays, organises recruiting processes and enables easy onboarding systems. In short: it’s a cloud-solution that relieves SMEs administratively and thus offers a large profit -- and all completely free of charge. Essentially, Zenefits is a Trojan horse. At its core it’s an insurance broker -- of which there are thousands engaged in a fierce price war. Zenefits however dodges the battle by offering its customers a real profit through ist HR software and at the same time by making strong profits from commissions. Another example is Osper, a digital solution that focuses on children and teenagers to help young people manage their savings accounts.
Banking is a minor matter for tomorrow’s profitable bank.
The main focuses are digital and integrated solutions, which offer the customer a relevant profit and which go beyond the boundaries of classic banking.
It’s clear to me that banks should offer their customers profits far above those of classical banking. This is the only way to guarantee profits in the future. In a completely digitalised and highly efficient market, sooner or later there won’t be any room for classic banking to make money. However, profit means a lot more than just a few nice digital features. The profit needs to be significant enough to compensate clearly for any cost disadvantages.
What is needed for this is a solid understanding of the customer base — not in the context of banking services, but in the far larger context of what customers want and need.
The possibilities for this are endless — for instance, in the areas of tax, financial planning, insurances inheritance and real estate. Or in terms of customer groups, where a strong fragmentation is inevitable. Students and apprentices won’t be able to be lumped together nor will artisans and online-traders, treasurers and collectors, wealthy heirs or self-made millionaires.
Those who want to offer tangible and relevant profits will have to do more than this. Simple ‘one-size-fits-all’ solutions won’t work. But whoever puts in the effort to develop specific solutions with high profit margins will grow profitably and exponentially.
In under 200 hours we’ll solidly research the frequently unconscious needs of potential customers, and from those results we will build digital and disruptive profit solutions - in less than 12 months.
From a blank sheet to market launch --- in under 12 months.
In a Nutshell
Standard banking services will no longer make money.
Tomorrow’s profitable bank offers its customers relevant, digital and integrated profit solutions beyond the boundaries of classical banking.
Banks will have to understand their customers to a higher degree and in a more profound and better way.
We offer our customers exactly this: relevant and disruptive profit solutions that are built on researched customer needs. In under 12 months - from a blank sheet to market launch.