Canada’s financial institutions, often touted for their stability, are also stodgy, says a report by Deloitte.
In future, financial institutions must be nimble to cope with changes, like digital innovations and new consumer expectations, sweeping the industry.
“They need to act, and act now,” says Deloitte.
The Millennial generation is particularly unimpressed with banking.
One third of the 10,000 Millennials who responded to an American survey last year say they don’t think they’ll need a bank in five years. More than half say their bank doesn’t offer anything different from other banks, and nearly three-quarters would be more enthusiastic about financial services offered by a technology company.
Tech companies are obliging them. Apple, eBay and Amazon have all introduced digital wallets. Websites offering peer-to-peer lending are now viable alternatives to banks. Automated advisors using algorithms are also gaining popularity.
To cope, Deloitte says financial institutions should:
- Structure themselves around customers, not products or services
- Make daily transactions simpler
- Eliminate redundant forms, and make sure all bank workers, from loan officers to advisors and managers, have access to the customer’s history with the bank
- Deliver advice that’s specific to the client, not his or her demographic profile
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