Banks Must Transition From Transactions to Engagement
A leading social media company sees its average user spend about 50 minutes every day on its platform. This compares to the roughly 54 seconds per day that a leading global retail bank interacts with its typical customer, which arguably best characterizes the difference between engagement vs. transactions. Beyond the difference in time, it illustrates the challenge banks and credit unions face in a digital world. Not only do they compete with rival banking organizations, they compete for consumer time, engagement and the troves of valuable data that come with it.
As banks increasingly reposition to a digital environment, they face the realities of today’s platform economy. As we enter 2018, seven of the 10 largest global market cap companies are platforms, and all now offer financial services. These companies are highly consumer-centric, target specific customer segments with timely product offerings, and occupy a growing portion of a consumer’s life.