As any executive at a financial services firm knows, organic growth is hard to come by. The underlying fundamentals in most developed markets just aren’t favorable.
Growth in population and household incomes in most markets is low. Millennials are taking their banking, borrowing and investing needs to digital alternatives, and investment firms are seeing the end of the Baby Boomers’ asset accumulation years. Outcomes tell the story – The top four U.S. banks’ consumer businesses grew revenue by 0.2% in 2015 and 0.7% in 2016.
Every year, financial services firms invest billions of dollars in marketing and customer experience improvements that do not produce significant results. Products and services are commoditized and innovations are short-lived. Cross-sell ratios are stagnant, and aggressive sales tactics and quotas are no longer a viable strategy. Institutions have no choice but to attract more customers and serve more of their needs. But how?continue reading »