PA financial services expert, Olaf Valentin Kjær, has had an article published in Børsen, discussing the digital future of banks. According to Olaf, banks need to wake up and face the new digital reality. He explains that it is no longer sufficient to just introduce new online payment methods, and that banks need to establish new business models to maintain and expand their market shares.
Olaf says: “As our affiliation with banks becomes increasingly weaker, so does our loyalty towards them. This is caused by increased competition from new players in the market such as Coop Bank and Google Wallet, who offers tailor-made and simple products to customers.”
According to Olaf, banks need to re-establish a close relationship with their customers and utilise available customer data to create the best customer service. He refers to various foreign banks that offer their customers easy and personalised solutions. For example, Commonwealth Bank of Australia uses augmented reality to support their clients in relation to purchase of real estate.
Olaf concludes: “Banks need to make themselves relevant to their customers and realise they are part of a new and more extensive value chain in which customers can choose whatever solution suits them best. Banks should also consider new partnerships with digital players, and in this way maintain, or maybe even expand, their market shares.”
Olaf Valentin Kjær is a financial expert at PA Consulting Group