Financial advice of the future

07 August 2019

What does financial advice of the future look like?

How banks use the digital transformation as an opportunity

The fact that traditional banks are facing digital challenges is nothing new. Online banks and providers of contactless payment are sprouting up everywhere. And they offer what many traditional banks neglect: a digital customer experience; an excellent service, which exactly meets the needs of the customer: customer proximity (not meaning the bank branch next door), speed and flexibility. The change takes place, there is nothing to change. But that is why it is all the more time to devote oneself to this change and to realign. To become more digital and customer focused again. Online Meeting solutions can help to respond to this need and ensure legally secure financial advice online. If financial institutions are missing out on digital development, they might face future profit losses of up to 20% -60% (Harvard Business Review).

Time is money: customers think efficiently, too

But why is this change happening at all, and why are the new providers so successful in the financial market, while traditional banks struggle with branch closures? Many traditional banks still rely on personal consultation on site, which requires a lot of effort and travel time on the part of the customer. But quite a few of these processes could already be done digitally today. And that, without losing customer proximity or satisfaction. Quite the contrary: many of today’s customers no longer have the time and desire to interrupt work for a 10-minute bank meeting, drive to a branch, and then possibly even have to wait for the meeting to start. Instead, they want to be flexible and pursue their banking business from anywhere at any time. This includes not only transfers via online banking. They also want to be able to sit down on their couch after work and go through their current financial situation with their financial consultant. Sounds crazy? But it is not.

What the customer wants today: Customer proximity via webcam

Some banks, which accept and use the digital transformation as a chance for growth and success, have been providing efficient advice to their customers via online meetings for some time now. Among others, Rabobank from the Netherlands. The new way to provide financial advice is as brilliant as it is simple: the client books the meeting with his financial consultant online and selects the time that suits him best. Whether during his regular working hours, or even at 19 o’clock in the evening. At the agreed time, the financial consultant and customer “meet” online and discuss all the relevant issues via online meeting. The client and consultant talk via webcam. So despite geographical distance there is a sense of closeness and personal contact. You know each other, you see each other, you trust each other.

Advise legally secure and conclude contracts digitally

It is important to comply with legal requirements in financial advice in general, and especially in online meeting counseling. Online meeting solutions such as Idiligo ensure that the entire online meeting complies with all legal requirements. The online meeting is logged and documented in real time. Consultant and customer discuss the relevant content and complete forms and contracts digitally during the online meeting. If necessary, the documents are even legally signed during the meeting. This ensures an efficient, consistently digital customer experience, while the financial consultant acts 100% compliant at all times.

Change as an opportunity

Of course, there will always be customers who prefer to discuss their financial situation personally at the bank branch during a cup of coffee. But banks that manage to adapt to the needs of tomorrow’s clients at the same time can all the more be successful. Not only do they reap the rewards of satisfied customers. They are also able to survive and save time and money through changing processes.

Learn more about how online financial advice succeeds. The IT banker (page 10) also reported on how banks create customer proximity and maximum efficiency through Idiligo online meetings.