Pub. 7 2017-2018 Issue 6

12 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S H ow do financial institutions effectively prepare for the future when they don’t know exactly what the future looks like? This is the question at the center of Prepare Now for the Fu- ture of Banking, a recent CSI webinar I presented, along with guest speaker Alyson Clarke, principal analyst fromForrester, amarket research company that works with business and tech leaders to develop customer-based strategies. While industry analysts may not be able to paint an exact portrait of the future, they can use data to identify trends in evolving customer behavior. Clarke says Forrester’s research indicates customers are more empowered than ever, giving rise to a new era that the firm calls the “Age of the Customer.” “Customers, because of their connectivity through smart- phones and other devices, hold the balance of power in the relationship now,” Clarke says. “The institution no longer determines where a customer can interact with themor where they can get information.” The Tendencies of Modern Customers Forrester has uncovered trends in five key areas that elab - orate on the current wave of customer empowerment: • Willingness to Experiment: Customers of all ages are showing an increasing appetite to try new technologies and new things, which is speeding up new technology adoption rates. • Device Usage: The number of devices connected to the Internet outside of computers and smartphones, such as smart homes, is growing considerably. • Digital/Physical Integration: Customers want to combine digital and physical experiences. Even businesses that were born digitally, like Amazon or Warby Parker, are starting to branch out into physical locations because of their importance in connecting with customers. • Information Savviness: Retail customers are con- suming information from businesses at a much faster rate. They want to know prices, features, etc., without having to jump through hoops. • Self-efficacy: Customers want to make sure they are going to benefit from business relationships. For example, they want to know that a financial institution can improve their financial life just asmuch as wanting to know the institution’s products, features and prices. According to Clarke, many financial institutions aren’t ready to meet customers’ new expectations, and digital dis- ruptors like Amazon Alexa and Google Home are beginning to drive a wedge between them and their customers. BY STEVE DUPERRIEU ,VICE PRESIDENT, CHANNELS & ANALYSTICS, CSI Strategies for Dealing with Changing Customer Expectations