Large financial institutions were already heavily investing in digital, but now there’s also a new segment of players on the banking field — Big Tech.
Big tech companies see an opportunity in banking to provide the experiences that consumers have become accustomed to in other areas of their lives.
Regional and community card issuers must make digital a focus to retain and attract new cardholders.
Purchases are the most frequent interaction that consumers have with their financial institution, providing the most opportunity for issuers to provide meaningful engagement.
“The average customer interacts with their bank at least twice a day for payments-related matters … making payments a beachhead for cross-selling other financial services,” according to McKinsey.
Digital-first cards that provide the consumer with these abilities allow individuals to take control of their financial lives and build trust and loyalty with their financial institution.
Much like Apple, Samsung recognizes the need to provide cardholders with insight into their spending, but without forcing them to budget.
A partnership with Google may be an opportunity to innovate quickly and provide the experiences consumers are seeking.
Clearly banks and credit unions must defend their territory and do so by taking away the main opportunity that competitors currently enjoy providing a superior digital experience, particularly around payments.