Is It Really the Regulators’ Fault? How to Fix the Bad Big-Bank Experience.
Even with significant resources at their disposal, big banks still struggle to crack the code on optimal customer experience. Why? It’s tough work that requires innovation and creative freedom to test new concepts. And too often regulators are used as an excuse to avoid that work.
Although regulators and regulation exist to prevent the kinds of financial crises we’ve experienced on both sides of the 21st century mark, these safeguard regulations have also built a barrier to entry for fintechs. Many fintechs simply lack the time, financial clout and patience to move through the bank-startup process. And fewer fintechs in the space mean less experimentation and innovation.
What’s more, banks are growing increasingly risk averse and are steering clear of the kind of creative testing needed to improve poor customer experiences.
But small business customers demand better banking and lending experiences, according to a recent Federal Reserve survey.
Is there a balance to be found between necessary regulatory safeguards and the creative freedom essential to create better customer experiences? Can banks safely test out new digital concepts to improve customer interactions?
In his latest Forbes article, Trevor Dryer offers an idea that could help financial institutions find the freedom to innovate safely and manageably without fear of crossing regulatory boundaries. Read it now.
As a contributing member of Forbes Finance Council, Dryer writes about improving access to capital, small business lending and developing trends in the banking industry. Find his latest articles on his contributor page.