In the banking industry, it is estimated that 80% of the client value (i.e. fees) is still generated by the 5% face-to-face contact. The 95% client contact through internet and mobile does not generate much value. In a context of much lower returns in general for the financial industries, banks are confronted to a key dilemma: increase e-banking and convenience but without losing opportunity for creating revenue!
This is a typical example of the impact of the Fourth Revolution on institutions. Bringing services online is not just a transpose of the actual brick and mortar relationship and value chain. It creates the question of creating a whole new value proposition.
And it so happens as well that if simple transactions can easily be carried over to online interfaces, more complex transactions still require a more in-depth contact, either by phone or face-to-face. In the banking industry those transactions carry the most fees: investments and loans. But keeping branches open create significant fixed costs that see their return diminish. The manner of implementing those interactions in an online world still remains to be invented.
The main lesson for the moment is that by bringing current services and transactions online, believing that the value proposition will remain similar is an illusion. It will change significantly and it will need to be reinvented.
