How are traditional banks holding up against fintech disruptors like Monzo and Starling? The answer may not surprise you. But, while neo and challenger banks have revolutionised the customer experience, traditional banks are very much still in the game.
In our latest guide, Taking on Neo Banks: Your 5-Step Guide to Innovating in Banking, Jon Hart, Moneyhub API Partnerships Director, reveals how banks can overcome legacy challenges and embrace modern innovation. Here’s a sneak peek into the guide's key insights:
Overcoming Legacy Challenges
Traditional banks often face numerous hurdles when driving innovation, rooted mainly in the following:
Legacy attitudes: Long-standing beliefs about customer loyalty and in-house tech development.
Legacy technology: Outdated systems creating technical debt.
Legacy thinking: A product-first mindset.
Neo banks, unaffected by these constraints, can innovate rapidly, offering seamless, customer-centric experiences that traditional banks struggle to match. However, all is not lost for incumbents.
Shifting to a Customer-First Approach
Today's digitally savvy customers demand real-time, personalised interactions. Transforming from a product-first to a customer-first approach is not just beneficial - it's essential. This means deeply understanding customer needs and preferences to deliver services that genuinely enhance their financial lives.
Leveraging Innovation Labs
Many banks are turning to Innovation Labs to pilot new ideas swiftly and cost-effectively. Key success strategies include:
Staying Lean: Fail fast, cheaply, and often while learning continuously.
Defining Success: Establish clear, measurable success criteria upfront.
Ensuring Adoption: Maintain strong stakeholder management and executive buy-in to transition successful pilots to full-scale adoption.
Partnering with Fintechs
Strategic partnerships with fintech companies can inject the agility and innovation necessary to overcome legacy resistance. These partnerships allow banks to enhance customer experiences and drive innovation at a previously unattainable pace.
Implementing Digital Engagement Layers
Legacy technology often hinders innovation. However, digital engagement layers can bridge these gaps by offering modern, enhanced customer experiences on top of outdated core systems. This approach allows banks to innovate rapidly without extensive overhauls.
Unlock New Possibilities Today
Innovation is crucial for traditional banks to meet customer expectations and remain competitive. Banks can accelerate their innovation journeys by addressing legacy challenges, forging fintech partnerships, and adopting a customer-first mindset.
Ready to Innovate?
Discover actionable strategies and detailed steps to drive innovation in financial services. Download Jon Hart's complete guide to dive deeper into these transformative insights.