{"id":20739,"date":"2023-03-28T15:39:50","date_gmt":"2023-03-28T15:39:50","guid":{"rendered":"https:\/\/europeanbusinessmagazine.com\/?p=20739"},"modified":"2023-03-28T15:39:50","modified_gmt":"2023-03-28T15:39:50","slug":"what-can-businesses-learn-about-the-uks-digital-future-from-the-financial-services-sector","status":"publish","type":"post","link":"https:\/\/europeanbusinessmagazine.com\/fintech\/what-can-businesses-learn-about-the-uks-digital-future-from-the-financial-services-sector\/","title":{"rendered":"What can businesses learn about the UK\u2019s digital future from the financial services sector?"},"content":{"rendered":"
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It is vital for any <\/span>business leader to look to the future and to anticipate how it <\/span>may<\/span> affect their company. Failure to do so <\/span>has consequences for everyone involved<\/span>; if sales or engagement <\/span>fall<\/span> then<\/span> jobs are put at risk, market positions are lost and reputation<\/span>s<\/span> suffer<\/span>, perhaps <\/span>irretrievably<\/span>. Yet <\/span>relatively <\/span>few businesses take the time to<\/span> really<\/span> <\/span>understand how they might deal with <\/span>what\u2019s <\/span>on the horizon<\/span>.By Mike Kiely, Sales Director Financial Services, IDnow<\/span> <\/strong><\/em><\/span><\/p>\n

The b<\/span>usiness <\/span>world <\/span>changes ra<\/span>pidly, <\/span>so<\/span> <\/span>the assessment and<\/span> plan for the future <\/span>has to be almost constant<\/span>. <\/span>However, o<\/span>ne of the <\/span>continuing <\/span>key factors in the<\/span> conduct of <\/span>business <\/span>will<\/span> <\/span>be the <\/span>reliance on <\/span>digital. But <\/span>looking towards the future, <\/span>what <\/span>does the average consumer feel about <\/span>using their smartphone, tablet or computer <\/span>to go about their daily lives<\/span>?<\/span> The FinServ community has always been at the forefront of innovation and it is an industry which has a reliable and steady finger on the pulse of current and anticipated consumer behaviour, as much of the business world at large is shaped by its transactions. <\/span><\/p>\n

Recent research <\/span>c<\/span>ommissioned by IDnow<\/span><\/a> <\/span>has shown what UK banking cus<\/span>t<\/span>omers want <\/span>from their digital experience<\/span>. T<\/span>he results <\/span>of the survey <\/span>are more broadly indicative<\/span> o<\/span>f<\/span> what consumers expect from a digital <\/span>future <\/span>in<\/span> the UK.<\/span><\/p>\n

Digital is clearly the future<\/span><\/strong><\/p>\n

W<\/span>ell over 60<\/span> per cent<\/span> of 2,001 UK adult<\/span>s<\/span> surveyed believe that digital <\/span>banking <\/span>processes \u2013 which<\/span> in this case<\/span> might encompass remote account opening, online banking options or an easy-to-use app \u2013 were either extremely important or important when it came to deciding which bank they should <\/span>en<\/span>trust <\/span>with <\/span>their money.<\/span> More widely, the same attitude <\/span>is likely to<\/span> prevail in <\/span>the experience of interact<\/span>ing<\/span> with a business<\/span>; digital is convenient, always-on and <\/span>now so familiar <\/span>in so many areas <\/span>that <\/span>the app<\/span> or mobile-friendly website <\/span>is <\/span>frequently <\/span>the first choice<\/span>.<\/span> An easy-to-use digital presence is now one of the basics <\/span>in practically all sectors.<\/span><\/p>\n

The<\/span> survey also found that limited opening hours<\/span>, lengthy processes and having to physically attend a location were <\/span>given as the top three annoyances <\/span>with<\/span> <\/span>financial institutions<\/span>. <\/span>There is no doubt that <\/span>consumers <\/span>in other sectors <\/span>have similar gripes<\/span>. <\/span>If<\/span> a <\/span>consumer <\/span>in any sector of UK business<\/span> is faced with a <\/span>process which <\/span>takes a long time, it will frustrate <\/span>them owing to <\/span>the increase<\/span>d<\/span> expectation<\/span>s<\/span> of immediate gratification. <\/span>It is here where digital processes have <\/strong><\/span>one of <\/span>their distinct advantages. <\/span><\/strong><\/p>\n

Security<\/span> <\/span>first<\/span><\/strong><\/p>\n

UK consumers are<\/span> <\/span>n<\/span>o<\/span>t na\u00efve<\/span>. T<\/span>hey <\/span>appreciate that <\/span>while <\/span>interacting online, particularly making purchases, is <\/span>a favourable way of <\/span>fulfilling their <\/span>needs<\/span>, it is <\/span>not without its dangers. <\/span>This is amply highlighted by the fact that i<\/span>n 2022, the UK had the highest number of cybercrime victims per million users, as 4<\/span>,<\/span>783 fell victim to some form of attack<\/span><\/span>.<\/span><\/p>\n

S<\/span>lightly m<\/span>ore than half of <\/span>IDnow\u2019s<\/span> survey respondents<\/span> said that they had <\/span>opened a bank account online and felt safe as they did so, which <\/span>should act as an eye-opener for<\/span> businesses<\/span>; it is <\/span>imperative <\/span>that they show consumers that they take their<\/span> digital<\/span> safety seriously<\/span> <\/span>as<\/span> they register to use their services. <\/span><\/p>\n

Of the 47 per cent who said they did not feel safe, cybercrime and fraud were cited as the main reasons for their unease. <\/span>This<\/span> opinion<\/span> <\/span>is <\/span>not un<\/span>justified <\/span>\u2013<\/span> <\/span>in 2022, <\/span>88 per cent of <\/span>all <\/span>UK businesses <\/span>experienced some form of<\/span> data brea<\/span>ch<\/span><\/span>.<\/span><\/p>\n<\/div>\n<\/div>\n

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It does<\/span> <\/span>n<\/span>o<\/span>t matter if the b<\/span>usiness<\/span> is a well-established name <\/span>in its sector<\/span> <\/span>or if it was founded last week<\/span>;<\/span> <\/span>whilst<\/span> customers want digital, they also want to be safe<\/span>. The responsibility for this rests with the <\/span>business <\/span>by <\/span>putting in place the highest security standards.<\/span> <\/span>These might include <\/span>the installation and continual <\/span>update of data protection software<\/span>, the use of secure networks and data encryption<\/span>. Multi-factor authentication <\/span>and <\/span>other methods of making sure that the customer is who they say they<\/span> are<\/span>, such as Know Your Customer (KYC) processes,<\/span> may also be used.<\/span> I<\/span>t\u2019s important to educate consumers <\/span>about how they can help themselves <\/span>to <\/span>keep their data safe<\/span> too, <\/span>both at the sign-up stage and <\/span>via regular communications <\/span>once they have onboarded<\/span>. <\/span><\/p>\n

However, this need for safety must also be balanced with a friction-free sign<\/span>-up process. <\/span>If registering to use a business\u2019s services online is cumbersome or fraught with <\/span>what the users see as unnecessary <\/span>steps<\/span>, they <\/span>may simply lose interest and look elsewhere. <\/span>13<\/span> per cent of<\/span> respondents <\/span>to the survey <\/span>had abandoned trying to <\/span>register with a bank online <\/span>at this stage.<\/span> This is likely to transcend the business world too. <\/span><\/p>\n

Traditional versus <\/span>new kids on the block<\/span><\/strong><\/p>\n

Financial institutions can be roughly categorised into traditional banks and their new, \u2018challenger\u2019 counterpa<\/span>rts<\/span> which predominantly exist online<\/span>. The same definition can be applied elsewhere in business as <\/span>traditional names in <\/span>retail, healthcare, <\/span>hospitality<\/span> or <\/span>telecommunication<\/span>s<\/span> <\/span>now <\/span>vie with newcomers<\/span>,<\/span> which have substantially different <\/span>outlooks and strategies<\/span> and usually follow a digital-first or digital-only approach<\/span>. <\/span><\/p>\n

Digital adoption plays a massive part in this<\/span> and has only increased in the <\/span>last tw<\/span>o<\/span>-and-a-half years, as w<\/span>hat came about through necessity is now the standard. <\/span>However, the survey revealed that<\/span>,<\/span> for banking at least, the traditional model was still the favoured <\/span>kind of institution <\/span>with which to <\/span>deal<\/span>.<\/span> <\/span>Its <\/span>hybrid<\/span> <\/span>appeal of the <\/span>in-person <\/span>balanced with<\/span> the <\/span>online<\/span> <\/span>showed that living life <\/span>purely online<\/span> is something that most of us aren\u2019t quite ready for just yet<\/span>. <\/span><\/p>\n

These hybrid ways of working are<\/span> a huge opportunity for <\/span>the more <\/span>traditional brands <\/span>and businesses which are equipped with<\/span>,<\/span> <\/span>and are prepared to embrace<\/span>,<\/span> the digital technologies that are rapidly becoming expected of them. <\/span><\/p>\n

The age-old question<\/span><\/strong><\/p>\n

Although <\/span>recent <\/span>digital <\/span>use <\/span>experienced <\/span>the<\/span> sharp<\/span>est<\/span> <\/span>of <\/span>increase<\/span>s<\/span> out of sheer necessity<\/span>, <\/span>it<\/span> i<\/span>s no surpris<\/span>e<\/span> that <\/span>widespread <\/span>adoption was driven by the younger generation.<\/span><\/p>\n

The survey showed that <\/span>considerably more 18-to-<\/span>55<\/span>-year-olds<\/span> were comfortable <\/span>in registering to use a financial institution online than their <\/span>fellow respondents aged over 55<\/span>, with those in the latter category still preferring <\/span>to visit a physical location<\/span> to set u<\/span>p their <\/span>accounts<\/span>. <\/span>F<\/span>or some of the older <\/span>generation,<\/span> there is still a <\/span>need for the shop or office where a <\/span>consumer<\/span> can talk to an expert<\/span> face-to-face<\/span>. <\/span> <\/span><\/p>\n

Despite digital being a chief consideration of respondents aged 18-to-24<\/span>, the<\/span> same age group <\/span>are also the savviest when it comes to knowing that something in the onboarding process isn\u2019t right and abandoning it<\/span>. <\/span>Friction-free onboarding is <\/span>therefore <\/span>a primary consideration for businesses<\/span> <\/span>if they want to <\/span>attract and <\/span>retain <\/span>younger <\/span>customers<\/span>. <\/span><\/p>\n

T<\/span>he key <\/span>to<\/span> <\/span>unlock<\/span>ing<\/span> potential<\/span><\/strong><\/p>\n

Despite the physical world still being important to <\/span>the majority of <\/span>the over-55 market<\/span> and <\/span>s<\/span>maller <\/span>segments of other age groups<\/span>, it\u2019s clear that digital is only going to continue its inexorable rise. <\/span>O<\/span>nline safety is paramount to users of digital services<\/span> and <\/span>the<\/span> research suggests they will have<\/span> few qualms about <\/span>halt<\/span>ing their interaction with a brand <\/span>if they feel <\/span>that this safety is not guaranteed.<\/span><\/p>\n<\/div>\n<\/div>\n

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It’s therefore vital for businesses to get their digital strategies right <\/span>\u2013 <\/span>quickly<\/span>. <\/span>There is a world of opportunity waiting to be harnessed but only if <\/span>consumers <\/span>are given not only the tools to use digital quickly and efficiently but also safely. <\/span>Investment <\/span>in digital needs to focus on these core elements <\/span>in order to provide a clear pathway <\/span>to successful digital interactions for everyone. <\/span><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

It is vital for any business leader to look to the future and to anticipate how it may affect their company. Failure to do so has consequences for everyone involved; if sales or engagement fall then jobs are put at risk, market positions are lost and reputations suffer, perhaps irretrievably. Yet relatively few businesses take […]<\/p>\n","protected":false},"author":4,"featured_media":13069,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[43,41],"tags":[],"class_list":{"0":"post-20739","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-fintech","8":"category-executive-education"},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/europeanbusinessmagazine.com\/wp-json\/wp\/v2\/posts\/20739","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/europeanbusinessmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/europeanbusinessmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/europeanbusinessmagazine.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/europeanbusinessmagazine.com\/wp-json\/wp\/v2\/comments?post=20739"}],"version-history":[{"count":1,"href":"https:\/\/europeanbusinessmagazine.com\/wp-json\/wp\/v2\/posts\/20739\/revisions"}],"predecessor-version":[{"id":20740,"href":"https:\/\/europeanbusinessmagazine.com\/wp-json\/wp\/v2\/posts\/20739\/revisions\/20740"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/europeanbusinessmagazine.com\/wp-json\/wp\/v2\/media\/13069"}],"wp:attachment":[{"href":"https:\/\/europeanbusinessmagazine.com\/wp-json\/wp\/v2\/media?parent=20739"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/europeanbusinessmagazine.com\/wp-json\/wp\/v2\/categories?post=20739"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/europeanbusinessmagazine.com\/wp-json\/wp\/v2\/tags?post=20739"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}