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LAUNCHING A BANK IN A CROWDED & COMPETITIVE MARKET

Let me start by saying without differentiation you have no brand and no business! For all the bankers, who have taken the leap and decided to turn their passion in to thriving business. The problem is that your passion lies in the industry that’s already over-saturated with businesses just like one you envision. There’s value in finding an untapped market, but you don’t have to toss your dreams aside just because you’re not the first person to have an idea. Startups are emerging as industry leaders in saturated markets by carving out a niche.

A saturated industry is a sign that there is a lot of opportunity in the market. If entrepreneurs avoided entering markets that are already served by other businesses, consumers would have far less options.

Consumers today have wide variety of financial brands to choose from compared to the options available a decade or so earlier. Likewise, there is not an overwhelming need for more restaurants, yet new dining venues are emerging every day, Uber entering the delivery segment for food via Ubereats. It’s possible for any company to succeed in even the most competitive industries by creating a product or delivering a service that’s distinctly different or better than what’s available—or by catering to a specific subset of the target audience.

Today it’s not just the traditional competition banks face. If you look around bank’s competitors start right from banks to telecom providers. A decade earlier would you even consider payments providers, social networks or Telco’s as a matter of fact your competition, answer is ……. No. Today……they co-exist in a crowded market and they have substantial share. They are bridging a gap which traditional banks could not.

That bridge is technology if you see the kind of connectivity data by 2020, there is a big opportunity for banks who have a clear strategy to leverage this. Entrepreneurs sometimes fall into the trap of creating a totally new product or developing an untried business model as they launch or grow a company. Their thought process is not without logic.

Leveraging change to gain market share. The key to success in a saturated market, is change. “Change is a synonym for opportunity. If you don't know what's changing - with your customers, competitors, distribution channels, alternative uses, features and more, your customers will buy from those who do,” And that’s precisely where new banks or fintechs have an edge.

“Fintechs often recognize the gaps that established businesses don't. If they're correct, they gain customers and grow. “The challenge is not to become like the established businesses who think they know better than the customer. Larger banks that have been in business for decades are sometimes set in their standards, and it’s more complicated to modify long-standing practices. Small businesses with less rigidity and a smaller organizational hierarchy can often make quick decisions and turn on a dime.

Differentiate Your Business: If you’re really good at keeping your finger on the pulse of the industry and the waves of change, that often sets you apart from the competition. Banks that differentiate themselves are able to thrive in the most competitive environments.

My advice is to do your homework, define what makes you different and embrace that difference wholeheartedly.

No matter how crowded your industry, even if it's full of major brands, you can achieve success by setting yourself apart. Whether that means reinventing industry standards, taking a new approach to the business model or offering something customers can’t refuse, carving a niche in the most saturated market is possible with commitment and creativity.

Banks and financial institutions generate vast volumes of data, with numbers accelerating exponentially every day. In this quick-fire market, high-pressure decisions have to be made rapidly, guided by a volume of information that simply did not exist just a few years ago.

The explosion of data is driving financial institutions to leverage advanced analytics to tackle a myriad of challenges and gain commercial advantage. By unlocking the wealth of information contained in market feeds, customer-service records and social media data, banks can derive more insight about their business than ever before, and shape future strategy through factual insight rather than intuition.

Customer service is a differentiator. A key differentiator for banks now lies in the quality of their customer service. Customers expect a more personalized service. Fortunately, the proliferation of data and analytics capabilities grants the ability to understand customers’ banking needs at a more granular level. Consider for instance, ATM deployment intelligence. By analyzing the relevant data, banks can identify areas where customers are struggling with personal finance management, and react to ensure financial advisors are based in the appropriate branches to provide customers with the support they require.

Data-driven insight can also be used to inform new products and services and deliver highly targeted personalized offers – leading to improved customer satisfaction and retention. However, the challenge is knowing how best to mine these silos of data.

A picture is worth a thousand numbers, the answer lies in harnessing the power of data visualization, the use of interactive, highly visual presentations to rapidly cut and correlate datasets in innovative ways. It’s easier for people to understand data when they see it visually. When people see and understand their data, they can spot specific facts and trends which can be acted upon quickly.

In the future, banks will have access to more data than ever, but it isn’t powerful until it’s understood. People think visually, and so visual analysis is the most effective and efficient way to extracting insight and value. Financial institutions will profit from shaking off their conservative image and embracing today’s fast, easy business intelligence – the key to staying ahead of the competition. This will ultimately improve their bottom line in a data driven world radically different from the business intelligence world in which many financial organizations are still living.

Personalization is a hot topic when talking about digital channels optimization. Let’s look at how personalization technologies could be used in banking to improve customer satisfaction. Online dashboards are almost the definition of customer touchpoints that have enormous potential for behavioral intervention. They’re where clients will be provided new information and where they will make choices. In that context, they’re the perfect place to shape a client’s choice.

The main goal here would be to make it easier for a client to stick with her or his own goals, be it saving for a mortgage deposit or saving for their kids’ college education. Through behavioral economics we know that one of the most robust way to shape human choices are what is called priming effects.

Achieving growth by setting new strategies for new markets. Expanding across the continent is by no means straightforward. Banks have to grapple with the variation of regulations and governance in different countries, while competing for business in underdeveloped markets that are becoming increasingly crowded as international banks look to build their presence on the continent.

Capturing new markets is an excellent way to grow. But if such markets were easy to crack, they would not hold so much potential for profit. By using strategies appropriate for this unique business environment, companies can vastly improve the odds that they will triumph in this uncertain terrain.

The greatest business successes in history, from ancient days to the days of Facebook – have stemmed from the company’s ability to capture new markets. Tapping into fresh types of consumption – new products, customers, or occasions – can create vibrant, long-term growth for companies in old and new industries alike. These markets can generate additional sources of profit, bolster the position of firms’ related businesses, and keep competitors always on the defensive.Thanks

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