Talking of no-one giving a jot about customer service in banking, there is a subtle nuance here which I thought someone might have spotted or commented upon but …
The nuance is that any organisation that takes friction out of the transaction process has the potential to change banking considerably.
There are several examples of how such friction removal or rather frictionless commerce occurs, and they are all the subjects we usually choose:
It is the reason why these firms have seen their volumes of business spike exorbitantly.
Apple has seen its download business for apps alone blossom into a $10 billion business in just three years (forget the iPad and the iPhone) …
Whilst iTunes revenue run rate is also $2 billion a quarter.
Amazon has seen revenues double in just two years (2009 through 2011).
Source: Michael J Parks
Google’s revenues are similarly doubling every two years.
Source: Marketing Land
And Facebook’s not doing badly either (albeit with some questions still about their business model).
Source: Marketing Land
Meanwhile, my favourite is PayPal, as y’all know. PayPal has grown from a mere minnow processing $1.5 billion of transaction per year in 2001 to a behemoth processing $1.7 trillion dollars by 2011.
Source: Venture Beat
Every example is one where a business has seen an opportunity to leverage the digital data age.
Apple has made accessing entertainment online easy.
Amazon has made shopping online easy.
Google has made finding stuff online easy.
Facebook has made socialising online easy.
PayPal has made payments online easy.
They regenerate regularly – google makes one or two algorithm changes every day - and they recognise that data is their asset.
These companies have annihilated the old world of shopping and watching, meeting and greeting, learning and working.
What does this mean for banking?
I recently made a commentary about this …
… but if you can’t watch the video, the gist is that banks are data-based businesses and if they do not leverage data and become agile in the focus upon the digitized customer, then they will be disrupted.
We shall see what happens for, when there is one that makes frictionless finance as easy as Apple makes entertainment and Amazon makes shopping, then we will see a movement to the new world of future banking and customers will be attracted to move rather than disturbed to change.