Invisible banking

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‘Banking Inside’ 

“The idea is to embed banking into the everyday lives of customers, so banking becomes invisible.”   – Piyush Gupta, CEO, DBS  

What is invisible banking? 

Invisible banking enables banking products and services to be integrated within the day to day digital touch points of customers. The whole process is aimed at being organic and natural by ensuring the customer journey is seamless and frictionless to the extent that the customer does not even realize the presence of a bank. 

FinTech’s are changing the way customers engage with banking services in turn forcing incumbent banks to reimagine their role in the ecosystem. Today, the customer no longer wishes to go to a branch. Customers, especially millennials prefer using their mobile for an end to end banking experience. How will banking look in the face of such a scenario?  

Become Invisible 
  • Choose value to customer over profit 
  • Develop partnerships to serve complete customer journeys  

Incumbents are using technology to make customer journey seamless 
  • Royal Bank of Canada has launched a mass scale artificial intelligence (AI) digital service, NOMI. The service offers customers insights into their financial habits and using predictive tech finds money which clients can save and automatically saves that money for them 
  • BBVA’s mobile banking app – CepBank, uses eye recognition to verify user identity by scanning structure of the eye and generating a personalized key which the bank stores. On top, they have introduced an AI based voice assistant MIA, which lets customers use voice command to transact  
  • Google Hands Free is a free app allowing people to pay in stores, restaurants and cafes without having to take out their phones. The system enables point-of-sale systems to detect the presence of a customer’s mobile phone, allowing the individual to simply ask to “pay with Google” 
Big Tech is leading the way 

So, what can bankers can learn from the likes of Google, Netflix, Amazon, Facebook?  

“If there’s one reason we have done better than of our peers in the Internet space over the last six years, it is because we have focused like a laser on customer experience.” -Jeff Bezos, Amazon 

Understanding the customer experience is the key to stickiness and an increased share of customers wallet.  

A customer does not require a home loan, he needs a house. A customer does not want an auto loan. She is buying a car. If the focus is on the need of the customer and not what is being sold, service providers can hide (make invisible) the mortgage and auto loan component in the buying process.  

The 5 questions to Banking ‘Invisibility’ 
  1. Why do customers consume our or our competitor’s services? 
  2. What are the customer experiences which are being repeated often?  
  3. What are the underlying social and emotional components driving consumer decisions? 
  4. What kind of convergence will deliver greater customer value? 
  5. Is our strategy defining our technology or the other way around? 
The strategies to success  
  1. Reimagine customer experience 
  2. Build an ecosystem approach 
  3. Design think customer value 
  4. Develop personalised solutions 
  5. Innovate Business models 


The Future of Banking

How is the world transacting differently?