Banks are changing from financial intermediaries to financial facilitators
Finally!!! Banks have started to think out of their conventional business models. Their rusted role as financial intermediaries is evolving into that of financial facilitators. So what caused this giant shift in the thought process? And why would a bank want to be a financial facilitator?
Banks have always been trying to perfect their internal workflow and go omnichannel. However, the major concern that always remained unattended has been as to “Why a customer should choose your bank over another when every other bank provides similar services?” remained unattended. The best solution to this is to overcome the weaknesses of conventional methods of being a mere financial intermediary. Being an intermediary always puts you at the mercy of a customer, who makes the ultimate choice of whether or not to choose you while executing a transaction. Considering the fact that majority of your customers possess more than bank account as well as credit or debit cards again reduces the probability of you being chosen over other banks.
Being a financial facilitator puts you in the driving seat i.e. by becoming a financial facilitator, you don’t just become their obvious choice, you acquire the power of deciding where your customers should go, to buy what they need.