In this presentation, which follows on from a speaking engagement at the ABCUL autumn conference, we take a look at the future of banking for credit unions, retail banks, and new entrants and how the success of your financial institution depends on how you adapt to the demands of Generation-Y. We look the approach you can take to the integration and use of new channel technologies and we also look at the advent of disruptive new entrants into the market.


Banking used to be centered on the branch. It was cash-centric and you could do your banking any way you liked, as long as it was during bank-designated hours at the bank’s offices, usually with lots of bank paperwork. It was a rigid affair, conducted on the bank’s terms not the customer’s. Changes in the market, including the Vicker’s Report and the end of conglomerate banking, alongside the advent of new technology, mean the banking industry needs to rethink its model.

In the era of Generation-Y, the proliferation of social media and mobile devices means customers want to decide how and when they use their bank. These customers are also used to getting rich and consistent experiences from multi-channel retailers as they move through stores, online, mobile and social media tools. Their demands are higher and so are their expectations.

Financial services providers need to make a step change. The banking experience should be adapted to modern consumer behaviour, meeting people’s lifestyles needs. This means more than just integrating your banking channels but offering a smartermulti-channel banking experience to reach and satisfy your customers. This is the essence of the new ‘Connected-Generation Banking‘.

Banking products and services need to be offered in ways customers want to consume them. Getting your channel mix right is not just about being able to offer the same products across all channels, nor being able to recognize the customer as they move across those channels. It’s also more than adding on a mobile banking service or making branch banking services available across other channels. Financial services providers must deliver a consistent and rewarding customer experience that’s built around the way their customers want to interact. This means you need to carefully select the product and service mix for each channel and offer this selection in a way that consumers will consider appropriate on that channel. Banking channels should be thought of as customer channels, and be customer-centric not bank-centric. Lest we forget, above all, consumers want their banking experience to be simpler. The mantra of convenience is paramount. Banks must offer a customer experience on each channel that is normal and expected, one with as few barriers to consumption as possible. Making the customer experience effortless in the context of complex legacy technology and processes is the real trick.

If you think a change isn’t coming, think again. There’s more choice of banking sources than ever, with banking services offered by unexpected sources (including top retail supermarkets) over new channels. The presentation notes the examples of new entrants such as Tesco Bank, Metro Bank, Movenbank and Simple. We think this landscape means there are rich opportunities for banks and new entrants alike to win market share by building multi-channel customer-oriented offerings that recognize these trends.