Brett King’s new book, BANK 2.0 – How customer behaviour and technology will change the future of financial services (Marshall Cavendish; publication date: March 29, 2010), exposes the massive flaws in the retail banking system due to dramatic shifts that have taken place in customer behaviour and the complete failure of banks to recognize and respond to those shifts. The key message is that the banking system is broken, not because of regulation, but because banks just don’t understand or care about their customers anymore.
“Institutions who hold on to the belief that physical branches remain at the core of what the brand does, will not easily adapt easily to the customer of tomorrow who rarely visits a branch, or the customer who sees no need for an over-the-counter transaction with cash or checks. Those who still classify the Internet, ATM and Mobile phones as “‘alternative”’ channels will be playing catch up for the next decade, while intermediaries will increasingly capture niche service opportunities,” writes King in the preface to BANK 2.0. As a writer, King stimulates, entertains and challenges his readers to rethink long held traditions that are challenged by rapidly changing customer behaviour.
BANK 2.0 is organized into three sections:
Part One examines the evolution of consumer behaviour that started with the internet, and have rapidly accelerated with the recent phenomenon of Blackberry, Social networking, the iPhone, etc. As customer expectations increasingly depart from traditional service models, King examines institutions need to understand what it will take to adapt, not just for profitability, but to protect brand, Assets under Management (AuM) and revenue. King exposes the flaws in the organization structures and strategic thinking of financial service companies today that created the financial crisis, and has separated them intellectually from their customers.
Part Two looks specifically at channel improvement opportunities within the retail bank. In this section, King looks at the key issues that choke development of innovation across the organization, but more importantly identifies the quick wins that can justify improvement programs today.
In Part Three, King examines the trends, innovations and technologies that are likely to have the most significant impact on financial services and consumers over the next decade. From social networking and mobile technologies, to the massive disruptions to traditional media and advertising, King looks at the forces shaping the way we interact, pay and trade in the 21st Century.
Brett King built the research and methodologies for BANK 2.0 over 10 years working with some of the biggest names in the business including HSBC, Citibank, Standard Chartered, EmiratesNBD (largest bank in the Middle-East), BNP Paribas, UBS and others. Whether a banker, an entrepreneur or a consumer of financial services – BANK 2.0 is an entertaining read that challenges the very concept of what banking means in today’s changing society.