The dream of intelligent products.
We live in such a complicated world that we are not able to fully predict the consequences of our behavior and more often we simply have too little knowledge to assess such consequences well. Wouldn't we like to use products that would be able to inform us about the consequences of our actions and adapt to our real current needs?
A car is an example of a thing that is still a long way from being so.
Let's imagine that we are driving 30 km/h above the speed limit in a given place, and the car says to us "Slow down, because if you cause an accident, your insurance policy will be more expensive in the next year by 1000 PLN" or "slow down, because the fine in this place it will cost you 400 PLN and 5 penalty points" or "slow down, because this is where accidents happen very often".
Such a message can appeal to the imagination and influence our decision.
Another example. Can the car inform us about its condition and will we, for example, pass a technical examination of the vehicle?
Every time I go to such an vehicle examination (in my older car), I don't know what the result will be. Sometimes I missed such a test because of some minor detail. In such a situation, under time pressure, I had to make a quick repair and return for another examination. I really wish such situations did not happen. I would like to be informed in advance that a repair is needed to be performed. It doesn't even have to be the right sensors in the suspension (although that would be nice), it is enough for me to be informed about the points that will be checked.
My expectations for a banking product are similar.
The account number is not only a unique character number assigned to me and my money, thanks to which it transfers this money to other entities.
The account number represents the possibilities offered to me by various types of services offered by my bank.
It is a product in the world of finance, like a car in the world of travel.
So I want this product to support me in all kinds of financial activities. That it would make it easier for me to do them, indicate new opportunities, and on the other hand, anticipate and inform me about the consequences of my behavior related to finances.
Additionally, it is supposed to be pleasant and convenient to use. It is supposed to respond to my current needs, skillfully recognize them thanks to access to my financial history and my historical activity related to the use of the interface and financial products available to me. And it should be remembered that the client is often associated with the bank for many years, some have accounts for up to 20/30 years. Generally, thanks to the experience and knowledge associated with me as a long-term customer, it can very well adapt to my needs.
Positive experience in using the product. It may be overlooked, but it's a bad strategy. A bank account can be more than just a simple billing tool.
I will come back to the example of the car again. Theoretically, we buy it mainly to transport us from point A to point B. If it were really so, we would buy the simplest car that would fulfill this function.
However, we don't buy the cheapest cars. We buy cars that give us some experience, not a set of basic functions. Often, we pay 50-100% of the base price of the car for gadgets and additional options, and it actually makes no sense from the point of view of the main goal.
Why? There are many reasons, of course, and this is not an article about the basics of marketing. However, I will focus on one aspect - the experience of owning and using a given product.
In analogy to the above, for me, banking products must provide experience that gives me a sense of support in the area of finance, and not be a tool with a lot of functions.
It has to give me something more, and that something is e.g. better informing me about the consequences of my actions or proposing actions that support me in the area of my financial needs.
These needs are different.
Each client has a different one.
One focuses on convenient payment of bills, another on a convenient tool for paying for purchases, yet another is looking for a good investment product.
I do not expect the Bank to support me in investing. There are no good solutions for investing in financial products, especially those with risk.
I expect more support in my daily settlements and controlling the condition of my finances. That's all.
A new look at the financial product (functionality vs experience)
To meet the above needs, it is not enough to have a good UX interface, be it mobile or web. A high-quality core banking solution is needed. A solution completely different from the previous standards.
Advantica approaches the product not as a set of features, functions, but as a financial experience that allows you to take full advantage of its possibilities, where each decision is supported by a set of benefits and consequences associated with it.
Consider an example like this:
Mr. Kowalski, wanting to reach the limit of annual payments on a credit card exempting him from the fee (50 PLN), made a transfer from the card, paying for some of his obligations. It turned out that a 3% commission, i.e. 18 PLN, was charged for this transfer (worth 600 PLN). He got upset, he felt cheated. Of course, the Bank is formally OK - the table of fees and commissions clearly states that the Bank charges a 3% fee for a transfer from the card (unfortunately, Mr. Kowalski read it after the operation). By the way, 3% is a lot, especially since the interest rate on the debit card is currently 2% (in accordance with the law).
What is the effect of such a situation?
- Mr. Kowalski resigns from this card - he does not need it. Why should he pay 50 PLN a year for it + interest on unpaid debt from time to time?
- He trusts his bank less.
- He perceives such a fee as too high in relation to the value of the operation.
The bank earned 18 PLN but made Mr. Kowalski feel angry.
And anger is an enormous energy, so great that it can motivate the client to make an effort to transfer the account to another bank. So is it worth the risk? Certainly not, but is the banking solution flexible enough to inform the client during a given process about the possibilities and consequences of the operations he is currently performing?
Advantica breaks the behaviors described above.
With each operation we perform, full information is associated with its consequences. The customer is informed about the costs. Moreover, he or she can be informed about another possibility (better, cheaper, more convenient) to fulfill a given need, activity or intention.
The product is encapsulated with a set of possibilities. For example, an account allows you to define various types of transfers, but also standing orders, baskets, serial transfers, etc. After some time, various types of preferential services are associated with the account of a given customer. The more an account is used, the more functionalities associated with it will evolve. The product at Advantica is not the same for all customers. It is individual. Personalized.
And what is most unique, it evolves over time, adapting to current needs.
It is worth noting that this is a very unique feature.
This is not possible for e.g. a car. A car does not become more economical if it determines that you are driving mainly in the city, or does not turn into off-road if it determines that you are driving off-road.
Our products, however, evolve.
Our system, based on the history of the user's activity, or his profile built on the basis of comparison with other similar profiles, can prioritize the most expected services related to a given product. For example, if the customer makes regular payments, the system will prompt him to define a basket of transfers, serial transfers or standing orders. If he usually pays by card in different places (shops, internet), he will have a convenient option to change limits, freeze the card easily available. If he wants to make a transfer that will potentially cost him too much, the system will suggest another better option for him.
It's a revolution. Just like Advantica.
With each activity related to a given product there is a list of additional actions that, depending on the calculated scoring, may be prompted.
Owning a product is an experience that is constantly changing. The car will not surprise you with its new functionality. After 5 years, it will not say - I'm reducing the engine capacity, because you have not used its power for years. Or vice versa - it removes the power limit because you are driving in accordance with the rules of the road and you are responsible. Car companies do not have programs of the type - we have new off-road springs for you, because monitoring has shown that you use your car a lot on off-road roads.
Advantica can adapt the functionality to the customer profile. By logging into the interface, the customer first receives the elements that Advantica think are most needed for him. Then, along with subsequent logins and use, the system itself determines what may be important for a given user.
If the payment deadlines are approaching, the system primarily focuses on verifying whether there is enough money to pay them. It indicates the next payments and the proportion of funds available to commitments.
If many transactions have been made recently, history is highlighted.
If there were card transactions or, for example, it was not possible to pay due to the limits, then after logging in, the option to raise the limits and the appropriate ones appears immediately (and you have probably tried to raise the limits at the store at the checkout, and due to the many options and time pressure, you increased them all just to be sure to complete the transaction - which is neither a good nor completely safe solution).
So the concept of a classic dashboard disappears...
The intelligent system indicates those functions which, in its opinion, are the most important for the customer at a given moment.
Another important property of Advantica relates to the priority of experience. The client's products work independently. As self-organizing entities. If the main account "decides" that the customer is approaching payments - it will generate an appropriate notification to the interface, and the interface, through its mechanisms, will know what to do with this fact. Independently, the card product may report that its repayment date is approaching and there are no funds in the correct account. This product will also report a corresponding notification.
Summary
How should the situation at the middle of this article be handled?
If you are trying to make a transfer from your card, the system should inform you about two things: first, of course, about the commission, and secondly, it should indicate that the operation you are trying to perform does not make sense, because you have enough funds on the current account to perform this operation.
My market experience shows that bankers are not ready for such a change. It must be clearly said - in this approach, they do not earn from hidden commissions and customer's faults (e.g. related to non-payment of the card on time, or a quick, expensive loan that the customer is forced to take).
So you have to change the way you think. Banks can make money on products that the customer really needs and which they are willing to pay for. And the more products that hit the real needs, the more satisfied the customer, just like the bank that makes money on it. The wolf is full and the sheep are whole. It's a fair game - win-win for both sides. Advantica offers such products.
Secondly, I believe that a good interface and a well-functioning product can (and even has the right to) cost money. Currently, banks do not charge fees for account maintenance or for the possession and operation of other banking products. I have no problem with paying for the bill, if it brings good user experience and additional options it will support me in my financial needs.
This value can and should cost money, and that's OK.
I leave the matters of what to earn to bankers - they are specialists in earning.
We provide banking that changes the perception of the client-bank relationship and this is the area we can focus on - how to use this value of the new relationship.
Stay tuned.