Are you a Lloyds insurance broker bummed out by the rise of what is now being labelled GAFA? Or a banker suffering at the hands of Google’s AdWords, Apple Pay, Facebook for Business or Amazon and its army of drones?
Well, fear not, because according to Daikatu’s Data Science Studio, you have everything you need to fight back across 4 critical business areas. So, get ready to tool up, City boys, here’s what you need to do.
The big wigs at GAFA (that’s Google, Amazon, Facebook, Amazon) are raining down “disruptive” terms like Big Data, Machine Learning, and Predictive Analytics, but don’t despair – if there’s one thing banks and insurance companies have in spades, its data – after all, folks, your institutions have been around for centuries! By contrast, GAFA is a new-born with all the wisdom and class of Peppa Pig’s dada.
“Massive stores of day-to-day transactional customer data”, says Daikatu, “can provide a unique advantage in better understanding, predicting and delivering what customers want.”
Secondly, remember your bricks and mortar. Although these ancient buildings “can seem like merely a cost overhead”, don’t forget that they can also give you a critical advantage when it comes to “developing meaningful customer relationships, as financial services become increasingly digitized”.
Ever tried to reach Amazon over the phone, or stood in one of London’s only 2 Apple stores whilst gangs of store-workers in blue t-shirts studiously ignore you or pretend they are serving someone else? Infuriating right – GAFA’s customer services are dreadful – and the backlash plays right into your trusty local banks’ hands. Just try to stay open a bit later than half three, OK?
Incredibly, a survey by IBM has revealed that 70% of respondents trust traditional banks more than their non-bank competitors. It seems like customers are well and truly over the bank-bashing days of the financial collapse of 2008. After all, investment bankers may have lost their jobs by the bucket load, but frankly, who cares! As long as our deposits are safe, that’s all that matters to customers. Mind you a little bit of interest once in a while would be nice – and not just on the overdraft.
Finally, employees within the banking and insurance sectors tend to have been at their firms for longer and have more experience and therefore nous. The likes of GAFA and the Fintech disruptors may be telling the world they are changing it, but “banks and insurance companies are well-positioned to master data science” says Daikatu.
We’d like to wager you didn’t think you’d be reading an article that takes the side of banking and insurance today.
Are we getting bored of so-called disruptors – after all, being compared unfavourably with banking culture is truly a new low for GAFA and its entourage.