True innovation in Banking is just not there.
All online efforts are there to put a nice front end on top of same products, services and features.
I am going to present a couple of examples
- Banks offer services such as identifying subscriptions or budgeting and such for their online experience. The big problem here is the assumption that the consumers are just using their bank account! This, I would think, is not the case for majority of consumers. I have many accounts and credit cards. I pay some bills on some credit cards to take advantage of rewards, some accounts for paycheck deposit, some accounts / cards for other services and so on. The whole service about analyzing my transactions is mute. Consolidators like mint.com might have an advantage here.
- Savings goals features set up by banks. Once again, with the interest rate where it is, this feature is of zero (possibly negative) interest to me. Lots of investment in building this feature into online experience also is going on and I don’t see the point.
To really break through, the innovation needs to go deeper and at the product offering level. Why are DDAs, Credit Cards and a very few others the only options?
We need more options that could offer the flexibility of savings and combine the rewards of cards and perhaps link to some investment accounts for better savings.
Once the underlying products change and evolve, then the digital experience can raise to meet it to. Otherwise, we are just putting new coat of paint on a broken structure.