“UBERIZING” financial advisory aka Banking Antivirus

“UBERIZING” financial advisory aka Banking Antivirus 800 600 direactions

“UBERIZING” financial advisory aka Banking Antivirus

We decided to share some of our earlier work as pieces of it are taking traction in market. Back in 2017 we looked on successful digital models such as UBER and applied to traditional financial advisory. Our work was driven by growing turmoil around PSD2 service directive and expected financial services market liberalization.

Service de-coupling in financial industry driven by open banking legal grounds is particularly appealing. Financial industry ARPU represents multiple of predecessor’s telco and energy sectors, thus greater room grab a share in high margin business budling banking commodity product with specific user need. The obvious target is financial advisory – high margin yet still very traditionally executed through network of physical advisors. We are seeing some glimpses of digitalization in sector, yet very cautious. Fear of jeopardizing existing creamy business overshed growing vulnerability to disruption for traditional players.

“UBERIZING” financial advisory

Banking antivirus is onboarding component of  full digital concept of financial advisory centered around customer with data driven insight, products and alternative go to market strategy. Complete framework thus represents design and go to market strategy of virtual banking operator, if you will

We @direaction.com always start with Why, reflecting on transforming social and business environment. Global pandemic has catalyzed some of those trends and brought new challenges onto table. If you feel like nothing has changed, you can stop reading now 🙂 …

…should you however accept new normal maybe looking to sneak into your business domain, prepare yourselves for inevitable changes. Primary condition for successful business model redesign is framing threat/opportunity, clearly defining client need and creating good story.

WHY’S framing our antivirus story in area of financial advisory were following…
  • Financial services de-coupling / legal and technology enabling to re-invent user proposition and distribution model
  • Shift of traditional advisory into digital channels with new monetization model recurring charge premium product
  • Demography / growing share of non-advisable millennial and younger tech savvy
  • Market protection digital service unbundling clears way to non-traditional or foreign fast movers
  • Seamless digital on-boarding through “new” appealing benchmarking user proposition building on data transaction history data insight
  • Low portfolio efficiency or short client lifespan with majority client base being dormant after initial transaction as result of physical network throughput capacity lagging digital extension
  • Higher client base utilization with internal digital lead market generation
  • Cultivation of advisor network to facilitate transformation / opening new profile of tech savy advisors
We have created
  • full-fledged virtual banking operator framework covering all phases of user journey from acquisition to unique service proposition or product relevant to market.
  • designed all components so that whole ecosystem can by smartly orchestrated. As result you find in self servicing advisor zone dynamic Lead market, bringing new business to existing as well as new advisors that may want join such platform with secured new business inflow.

Disrupting traditional financial advisory with new technology means is just matter of time. Hefty margins and remuneration model that may not always favor best solution for client offers plenty of room for new entrants that are serious about reinventing industry with clear market positioning.

We’ll be happy to help you on that mission !