Oracle Industry Solutions—Financial Services

The Engaged Financial Services Provider: Meeting Today’s Customer Expectations

A guide to building enduring customer relationships through technology.

You ain’t seen nothing yet.

The financial services industry has seen major changes over the last decade. And the realities, probabilities, and possibilities that lie ahead are unprecedented. It’s going to be an exciting trip—often at seemingly lightning speed—and the question is, what do financial businesses need to do to stay on it for the long haul? One thing is for sure, they’ll need to take care of the people who buy their products and services.

Today’s customers, from across many generations and wealth levels, are hyperconnected. Digital has become mainstream. Customers are doing their financial transactions on digital channels, using their phone. Banks, insurers, investment companies—financial service providers in general—are having to connect with their customers across all financial stages throughout their lives, from saving for and buying their first home to financing a business to planning their retirement.


As more regulations are introduced, these different stages of engagement must be personalised in a way that focuses on an individual customer’s financial best interests. Customers are also looking for the same experiences from their financial providers that they get from digital leaders in other sectors, such as retail, where they can transact from their mobile device and easily move between digital and in-branch discussions with their advisor.

Advisors are looking for the same capabilities in the business environment and want access through mobile and tablet devices with simple point/swipe actions. This will move them from behind the computer to face-to-face interactions with their clients.

John Marcante, CEO, Vanguard, in “Wealth and Asset Management 2022: The Path to Digital Leadership,” Roubini ThoughtLab
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Becoming engaged, long-term.

Engaged financial services providers must connect with and nurture their customers in the channels of their choice, and in a relevant, fast, and secure way.

In this third of three digibooks, we consider what it means to become an engaged financial services provider, and discuss how they can keep up with today’s consumer expectations and use technology to offer superior customer and employee experiences.

Becoming engaged

1. What’s Driving Change?

Three key trends.

Digital transformation in the financial sector is allowing providers to increase profitability, productivity, and market share. A loyal banking customer will come to their trusted advisor first to have all of their financial needs addressed. If financial institutions are to compete effectively, they need to keep up with the pace of change while being aware of three key trends that are driving this transformation.

Transformation Trends

Trend 1: Customer experience.

Customers know what they want, and they want it now.

In today’s digital world, customer expectations have risen considerably, particularly in the retail space. Now, in the financial sector, customers want a more convenient, engaging, and secure user experience.

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Executives report fast-rising customer expectations in many areas, from product simplicity/transparency (49%) and anytime, anywhere, any-device access (45%) to robust cybersecurity (43%), more innovative products (32%), and reduced fees (27%).

“Wealth and Asset Management 2022: The Path to Digital Leadership,” Roubini ThoughtLab
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Digital natives are already doing business via Facebook and other channels that they use all day and every day. WeChat is a giant social media service with more than 900 million monthly active users. In July 2017, it launched WeChat Pay as a mobile payment option for Chinese tourists visiting Europe. And there are many more examples that demonstrate how the bond between social interactions and money grows ever stronger, as customers become more comfortable within their channel.

A button in WhatsApp could wind up being your bank’s most important touch point. Eyal Lifshitz, CEO BlueVine
“Banks and Fintech in 2025: An Unlikely Alliance,”, 19 April, 2016
Digital natives
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The IDC FutureScape report, “Worldwide Financial Services 2018 Predictions,” states that in 2019 we’ll see peer-to-peer transactions (P2P) worth a total of $6.0 trillion made worldwide using mobile devices.

Consumers are increasingly comfortable with using their mobile devices as tools to manage financial services, including making payments at the point of sale and with friends and family (P2P payments). IDC FutureScape: “Worldwide Financial Services 2018 Predictions”
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Trend 2: Rise of fintech.

Look out—fintechs are stealing the show.

For traditional financial services providers, competition from early fintech adopters is strong. Less regulated, and unburdened by legacy IT and physical infrastructure, fintechs have the agility to quickly launch new mobile services that attract customers away from providers that can’t move as swiftly. Fintech is clearly driving the new business model.

Rise of fintech
The Economist, May 2015

But banks and other financial institutions are seeking to achieve the same level of agility the fintechs have accomplished today. Traditional financial institutions are investing in and collaborating with fintechs by integrating fintech technologies into their own business models to give customers the customer experience they expect.

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Trend 3: Security and compliance.

Protect, detect, recover, and comply.

As financial companies embrace the many possibilities of innovative technology, the rapidly increasing number of services and channels has inevitably meant rising cybercrime and greater risk of data breaches. This will challenge security and compliance for the foreseeable future.

Capgemini: “Top Ten Trends in Banking 2017”

Financial businesses must develop the capability to meet a constant flow of new or evolving regulations. They must keep financial data secure and comply with in-country data residency regulations. Financial interactions must be tracked and meet compliance rules for acting in the best interests of the customer.

However, digital technology also offers automated compliance solutions—while digital leaders are developing systems that not only detect and protect against security incidents, but also have the resilience to recover quickly from breaches and disruptions.

Responding to regulatory pressure, midsize and community banks will begin to look more at cloud-based compliance analytics platforms and data solutions to improve aspects of their compliance programs, particularly those around KYC (know your customer), CDD (customer due diligence), and AML (anti–money laundering). IDC FutureScape: “Worldwide Financial Services 2018 Predictions”
Responding to regulatory pressure
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By looking at just these three key trends—and there are many more—it’s clear that the financial industry is facing irreversible change at a rapid pace. The businesses within it must act now to secure their digital futures and reap the rewards of transformation.

Dean Butler, Head of Retail Wealth, HSBC UK
“Wealth and Asset Management 2022: The Path to Digital Leadership,” Roubini ThoughtLab
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