Let’s talk sales enablement. Let’s talk fintech. Let’s talk about the potential of both within banking. And make no mistake; they are not mutually exclusive.
EY recently released a pair of reports on the rise of fintech and how its growth can be nothing but beneficial for banks and their clients and customers. The caveat, of course, is that everyone has to get along. “Why?” some banks may ask. Because with fintech firms attracting over $13.1B in VC-backed investments in 2016, according to EY, the time has come to stop competing and start collaborating in the name of disruption.
Not too far from all of this is sales enablement. Sales enablement is both a business practice and technological platform. For banks, the combination means providing marketing teams and relationship managers with the content and analytics necessary to achieve higher cross-sell win rates. Like fintech offerings, it personalizes the digital banking experience for clients and improves margins for banks. It also involves partnering with an external vendor so that operational efficiencies can be achieved and greater opportunities seized by all stakeholders.
EY sees fintech’s positive impact on banks in a similar manner to what sales enablement can provide—holistic transformation:
In 2016, the average return on equity (ROE) for the largest 200 global banks was just over 7.1%. To achieve an ROE of 12%, the top 200 global banks need to increase their revenues by 15% and reduce costs by 13.7%. Engaging with Fintechs, part of a broader banking ecosystem, will help banks drive down costs, innovate and enhance customer service.
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EY believes banks are at a partner or perish inflection point, and the best way forward requires these four steps:
- Develop a fintech framework that rewards innovation
- Choose an innovation operating model that connects new ideas to business needs while balancing innovation with risk
- Assess the pros and cons of your fintech engagement strategies
- Carefully manage talent and architectural change
Only after plotting such a course will banks be poised for success alongside their fintech partner.
The Market Is Ready, and Waiting
This may look like another academic exercise, but fintech adoption rates say otherwise, loud and clear. EY’s Adoption Index shows the following across 20 markets globally:
- 33 percent is the average fintech adoption globally, compared with 16 percent in 2015
- 46 percent is the average fintech adoption across emerging markets: Brazil, China, India, Mexico and South Africa
- 50 percent of consumers use fintech money transfer and payments services, and 65 percent anticipate doing so in the future
- 64 percent of fintech users prefer using digital channels to manage all aspects of their life, compared with 38 percent non-users
- 13 percent of consumers are regular users of five or more fintech services (fintech “super users”)
With fintech’s adoption curve steepening, banks have little choice but to empower their managers to deliver a hyper-personalized omnichannel experience. The methodology and functional breadth of sales enablement goes hand in hand with almost any customer fintech behavior that banks must match moving forward. Customers and clients want contextually relevant lending information and consistently beneficial banking relationships. And they want both wherever, whenever. Banks need stronger revenue streams and healthier margins. Sales enablement, just the same as fintech, can help each achieve their goals.
