This post has been curated using various articles. We have tried to put into perspective as to how the Banking sector can disrupt its traditional outlook towards its products & services and innovate using Design Thinking.
The financial services sector is facing multiple challenges, from increased regulatory demands to sluggish economic growth and low interest rates. Fintech startups such as PayPal threaten to undermine traditional revenue sources and ways of doing business.
Also, the rapid pace of development witnessed in 21st century civilization has turned many a world upside down. Disruptive products, services and technologies continue to manifest at an almost unfollowable rate, while societies and markets exhibit increasing magnitudes of complexity.
In such a complex world, where consumer, market and industry dynamics are constantly shifting, how can the banking sector keep pace? How can it ensure the services, products and experience it provides evolve with the needs and expectations of the 21st century individual?
Design thinking may provide the solution, by seeking to answer the question: “How can banks boost their growth by successfully applying design thinking in a de-banking era?”
Design thinking puts the end-user, the customer, at the center, and creates a workplace atmosphere that encourages creative ideas and values diverse teams. It requires that leadership shifts the way it devises strategy, beginning by understanding client needs and behaviors and then working back from there.
Just talking about being “customer centric” and “user experience” doesn’t cut it. Every organisation talks about their focus on the customer – few execute. And the reason is that they need a process – this is where Design Thinking comes in. It is a well designed, tried and tested process. We, at Ideafarms, work with many of our clients to build design and customer empathy at the heart of the organisation, not at the edge.
And there have been notable success stories of banks using design thinking, from Singapore’s OCBC Bank, to Auckland Savings Bank, Bank of America, Barclays PLC and National Australian Bank.
The Design Thinking process can help financial services companies understand customer needs and behaviors, allowing firms to build out prototypes, test and learn from them, and finally launch the products and services that will help them succeed.
Improving the user experience will better banks’ customer relationships and add to the value proposition of the bank’s business model.
“We believe that while the banking sector is going through a period of disruption driven by digitization, new regulations, changing customer behaviors, low growth perspectives, a sticky cost base, and increased competition, this is not the end of the sector. Our view, instead, is that this marks the genesis of the banking sector’s new DNA: a combination of changes in business models, agile execution, and design thinking.”