Is the Banking Software Industry building obsolete solutions?


How to replace Banking?

Somebody had to say it. Yes. The Banking Industry will spend billions in the coming months’ reconverting his old and boring forms from the e-banking and frontend applications in boring and useless mobile applications.

Already in countries like UK the demand for mobile developers is soaring to a point of scarcity. Banking software editors looking to stuff up their order books are buying left and right startups producing user interfaces and user experience software.  All this sound pretty exciting until you check the content of the page flows, the questionnaires clients are supposed to fill, and specially the business Banks hope to leverage, then you see: boring, boring, boring!

People will probably burn their iPhone before they order a credit card on any BankApp. Others will probably prefer to move on a Park bench before answering 15 questions on an iPad in order to get a mortgage rate? The most daring apps let the possibility to upload a picture of the house I want to buy, or the picture of the car I want to lease.  No comments to this cornucopia of wittiness and ingenuity.

No wonder, as the article from Times reports, Banks buildings are converting into Discos, Shops and restaurants. This week, in an article of the American Banker, an article stated that stock markets were punishing Banks which announced investment programs in Core Banking systems or in Front applications. Well, reading the article from Times, you’ll understand why.

The Times’ article builds his case on the millennial generation: but maybe Banks will understand better the concept if we explain this revolution in terms of HNWI, Mass affluent and Retail. Reality is that the whole consumer industry is facing the rise of a new consumer class: the Ultra Retail.

How does behave the Ultra Retail Consumer

  • ultra-retail consumer doesn’t want to sign-up or leave his email address just because. Brands have to provide a really compelling case for this. In case Brands force the ultra-retail consumer to do that, you’ll get a disposable address.
  • In order to understand how this behavior is impacting the Banking Business. Go quickly to Bangalore in India, where people are receiving money transfers and cashing them out at any ATM with a code they receive on their mobiles. The recipient doesn’t need to have an account.
  • Most websites providing market intelligence reports and business articles have understood that. They don’t pretend any longer that readers left behind an email address. Most of them use even Share platforms to publish their content.
  • The Ultra-retail consumers don’t buy brands just because: they need to be convinced at every single transaction act. Banks should be ready to support their clients using PayPal accounts, associated to their salary accounts. Some Polish banks are doing this already.
  • The ultra-retail consumer wants the full, real size experience before deciding. Shoppers are going into malls, trying the items they want to buy and then shopping around with their mobiles to seek for the most appealing price tag.
  • If your Bank is in the Mortgage business, you better offer the full service and make sure your rate is competitive, before you ask for the data of a client that you’re not going to get!

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