If you’re a traditional financial institution, it’s hard to know where to begin, but the bottom line is if you aren’t devoting time, energy and resources to considering fintech’s impact on the industry, it’s time to reconsider, and we’re here to help show you the way.
Let’s start with the assumption that fintechs pose a threat in the first place. Are fintechs really coming for your consumers? Or, are they simply giving your consumers what they want? Sure, there are some gimmicks and some deals - but, for the most part, consumers are just finding what they want and need in a really easy-to-navigate way. Yes, you could view that as a threat. Or, you could sit back and take some notes on how fintechs are changing the industry and find a way to follow suit.
You may be reading this and thinking: “But I don’t want to be like a fintech - that’s not who we are!”
Yes, exactly. And that is precisely where this “threat” becomes an opportunity.
Fintechs cannot replicate what traditional financial institutions have - the “it factor” of any local bank or credit union. It’s the relational and personal impact of a community presence that builds confidence, trust and loyalty. But traditional financial institutions can replicate what fintechs have - and that’s where the magic takes place.
A couple of things to consider:
- What does your financial institution have that can’t be replicated by fintechs? What are your key differentiators? Let’s elevate them and leverage them to increase interest, engagement and drive growth. Don’t have them? Let’s create them - and then broadcast them loud and proud across all platforms.
- What can’t you do today that a fintech can? Where does a current or potential consumer feel a tension / pain point or inconvenience that sends them to fintech? Let’s develop our plan of attack for winning that customer back and stopping others from making the same move. Upping your digital game, and leveraging partnerships (yes, sometimes even with fintechs!) to transform your offerings is a great place to start.
You can choose to view fintechs as the enemy. Or, you can recognize their growth was born out of an unmet consumer need and consider what it means for your institution. The key is doubling down on the who, what and why that is unique to your brand identity, capitalizing on the opportunity to highlight and celebrate what makes “you,” you while simultaneously evolving how you determine and deliver against your consumers’ needs.