Banking value creation

The banking business has changed dramatically during the last decade. The development of new IT systems, mobile banking and other electronic banking services via multiple electronic channels has made it possible for the banking industry to create more and more value for their customers. The increasing diffusion of mobile phones and the banking applications is the basis of electronic banking nowadays and banks are competing to create the best value and services for their customers (Pousttchi and Schurig, 2004). Because, let’s be honest, if you want to switch to another bank, besides a couple of administration effort, you could easily do that. So, what’s holding you back?

Banks allow their customers to check the balance and transactions of their accounts, pay invoices and transfer funds between accounts, make buy-and-sell orders for the stock exchange etc. etc. The understanding of service user behaviour is one of the most basic requisites of service development (Laukkanen & Lauronen, 2005). Customers views and needs are changing every day and if you look at service development, banks need to change as well. But the needs are unsure and short-timed and it is necessary for banks to develop knowledge of customer perspective about their online services. To develop this, banks need a deeper insight into aspects of consumer psychology and decision-making.

ING is, nowadays, one of the foreman’s as it comes to mobile banking service in the Netherlands. ‘’We create value by providing products and services that help people to improve their lives and fuel economic growth. ING’s purpose – empowering people to stay a step ahead in life and in business- is reflected in ING’s structure, strategy and in the values and behaviours we embrace’’, is one of their mission statements.  Specifically, ‘’ING creates value by helping our customers secure their financial futures, by supporting people when making life changing decisions, through seamless processing of transactions, and by empowering customers to have greater insight into their financial affairs.’’

Banking is a very personal data and ING needs to make sure that these data is handled with care. To use this data, ING tell us that it is in our best interests that transactions are processed correctly. Next to these transactions, by giving permission to their cookies, they can view our browsing behaviour and, via this way, ING can give us tailored information and special offers.

ING has formulated the following goals for using our data:
1. Improving customer service
2. Countering fraud and cybercrime
3. Operational excellence
4. Diminishing risks (e.g. reducing payment arrears)
5. Creating commercial opportunities.

This brings us back to the question: why would you stay at your bank? Me, as a customer of ING, am not looking at interest percentages or any financial reasons to stay at ING. I am looking at their service and the easiness of using their applications. Via this way, and looking at the efficiency criteria (CDCC,2017) by decreasing my effort and increasing my usage of their apps by all the new add-ons I cannot think of a reason to switch banks. By retaining their customers ING can use their data to keep improving their services and by this joint profitability customers will stay at ING. A good way of using your own consumers to create value.



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