Just recently a news headline screamed “Customers flock to iPhone banking!” I immediately thought the only way a bank could do this is through collaboration and 
partnering with third parties. Institutions that fail to understand this are leaving money on the table. After a recent chat with a financial institution I fear that many are still missing the new markets, new offerings and new bottom-line that collaboration delivers.
Our customers dictate the way we sell, the way we market, the way we do business. Our Gen Y customers insist on immediate: instant messaging, instant communication, instant customer service and instant banking. So banking as usual is far from the answer. I understand that financial institutions are conservative, not early adopters, and are hesitant in their approach to new product development; however, in today’s economy we cannot say “that’s just the banking industry.” FIs must push past the norm and push the envelope to take their institution to the next level. Collaboration opens this door and provides the vehicle you need to operate more efficiently, make better business decisions, gain business agility, and impact your bottom line.
New Markets
Collaboration gives FIs a wider market reach and access to a customer base that thrives on instant. Embracing social networks, putting banking centers in supermarkets, and mobile applications all help banks and credit unions attract and keep today’s customer. According to ABI Research around 407 million people worldwide will carry out financial transactions with their banks using their mobile phones in 2015.
New Offerings
Financial institutions can gain a competitive edge by bringing new innovative ideas to their product offerings, delivery methods, and customer service. Though research and development and innovation may not be their forte, FIs can partner with innovative third party companies to differentiate their offerings, and faster. In addition, social media and transparent borders allow for a global pool of shared ideas. We can learn a lot from the Asia-Pacific region with their 52.2 million mobile banking subscribers in 2009.
New Bottom-Line
New markets, new offerings and the reduced cost that collaboration brings directly impacts your bottom-line. Research done by Business Week showed that collaboration directly impacts a FI’s bottom line. 49% of FIs surveyed declared that their profitability increased with collaboration while 47% said their revenue growth increased.
So, FIs I urge you to step outside the box. Make collaboration a part of your culture and rub shoulders with cutting edge companies outside your region and even outside your industry. And if you have already taken the bull by the horn, do share with us all your successes and struggles.
To learn more about collaboration and how to incorporate into your culture click here!