Author: David Webber
Financial services providers need to capitalise on industry changes
As we bid farewell to 2013, it seems as though the rollercoaster ride of economic turbulence and regulatory reform of the last five years is finally coming to an end. The UK economy is rebounding, the deficit is falling and unemployment is at its lowest level since 2009. But the pace of change is not set to slow any time soon and 2014 is shaping up to be another exciting year for digital financial services. David Webber looks at 3 of the big trends that will set the agenda.
The rise of mobile payments
The Payment Council’s new payment system will eliminate the need to remember sort codes and account numbers by enabling customers to make payments securely via their mobile phones. All they will need to do is enter the recipient’s mobile number and the amount they want to transfer. There is no question that such a fast and effective payment method will spur on the ever evolving mobile payments market.
With the recent launch of the iPhone 5S and its integrated fingerprint scanner, biometric authentication is a trend that will only accelerate in 2014. As a wave of new mobile devices with biometric security features enters the market in 2014, financial services providers will look at ways to replace lengthy passwords with innovative ways to secure customers’ mobile and online accounts. Not only will this help make life harder for fraudsters, but it also has the potential to improve the customer experience.
With the European Union cutting transaction fees, rendering reward schemes unviable, it is likely we will see an increase in partnerships between financial services organisations and retailers. The influx of spend data that will result from such collaborations will mean customers can be targeted far more effectively with tailored offers, such as double cashback in partner stores when they use their card. It will also make it a lot easier for financial services providers to look at spending patterns to predict what products and services customers want before they’ve even thought about it.
It is up to financial services providers and their technology partners to capitalise on these exciting developments in 2014. However, with biometric authentication, greater personalisation and the rise of mobile payments offering a prime opportunity to innovate, one thing is clear: 2014 is set to be another exciting year for mobile and online financial services.