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Sharing with friends gets digital, including splitting the bill

July 30, 2021 - Supriya Sridhar Sathnur

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Banks need to be saying “You’ve got a friend in me”

Even a few years ago, when friends shared moments together, it was often in person – whether at the movies, sharing brunch or hanging out at the mall, and of course, splitting the bill. Over the past two years, the pandemic has evolved new digital ways to share moments with friends, supported by technology.

Take cricket for example, a sport that brings India together. In 2019, Hotstar’s motto ‘Koi Yaar Nahi Far’ led them to devise ways for friends to watch the matches of the Indian Premier League(IPL) together during the lockdown, and create a social yet digital cricket-watching experience.Disney+Hotstar rolled out a ‘watch with friends’ feature, where groups of five could watch the match on a video call. They also collaborated with the food delivery start-up Swiggy to allow viewers to order food from the Hotstar app, without missing any part of the match.Even hanging out at the mall is taking a digital turn, with platforms like Wormhole that alert users when someone they know is shopping. Their avatars can then discuss, compare and interact with each other as they would do at a mall.

Digital native Audiences

For millennials and gen Y, adopting digital experiences isn’t new; they are the first generation of digital natives, having learnt technology instinctively. Going online is their first response, even when it comes to money and banking. We took a poll, asking people about their preferred way to ‘split the bill’ or share money with friends. Over 53% of respondent over Twitter preferred to do this via a digital wallet, and 25% chose online bank transfers. Only 10% chose cash or cheque and 10% would use a payment via a messenger app. This reaffirms the current changes in the way customers view banking, with a trend towards digital and online-first approaches. Also interesting is the fact that cash or cheque payments are firmly on their way out, being replaced at the same pace with the upcoming trend of payments via messaging apps.

Integrating with Customers’ Life Journeys

Customers are viewing banking as part of their broader life journey, and banks must reciprocate by becoming part of the customer’s journey, positioning themselves for the real life moments. Instead of waiting for the customer to request medical insurance, the bank needs to be a wellness partner. Primary needs and real life events are what define consumer’s experiences with banks, and they can no longer wait for the customer to walk into the branch and ask for a loan, or an investment plan.

Or take the case of sharing a moment with friends. After a good time, everyone wants an elegant and easy solution for splitting the bill that doesn’t ruin the moment – how are banks offering a solution? Multiple bank mobile apps offer a basic transfer funds functionality, but despite it being more convenient than a cheque or an ATM, it doesn’t serve the purpose of the ‘life moment’. Splitting a bill with friends after dinner is easier to do on the very social apps used to connect and communicate with friend circles on.

This is the thinking that digital banks and neo banks are applying – a customer first approach and digital first design. Liv., a digital-only bank launched by Emirates NBD for millennials, has a ‘Split Bills’ feature that allows users to split bills with other people send payment notifications to their family and friends via social media channels, which include WhatsApp and Facebook.

Keeping Pace with Changing Behaviors

Banking, like every other consumer service, needs to keep pace with consumer’s behavior, lifestyles and preferences. Taking a look at the customer’s life and having a comprehensive strategy that maximizes digital engagement can position their products such as payments, co-branded offers, reference programs, home loans and insurance. The only way to service customers in such a connected manner is with a platform business model strategy and strategic partnerships.

To win in this evolving digital environment, banks need to put in place a sound ecosystem approach that allows them to create digital experiences, based on the life moments of the customer. When starting a new job, can the bank partner with lifestyle apps to offer support with a new wardrobe? Or when a baby is born, are there ways to tune into new parents’ thinking about college fund investments? A number of banks are taking the lead in nurturing an ecosystem to build their business. Emirates NBD Liv. provides the millennials in UAE access to a daily feed of information specific to their lifestyle along with relevant offers. Banks can also choose to participate in larger ecosystems through collaborations with Apple Pay, Google Pay or Amazon. They can monetize them through revenue sharing, higher customer acquisition and lower cost of operations.

The institution of banking has changed from the traditional brick and mortar establishment, to an evolving relationship that must accompany the customer on their phone, in their lives, reading their minds and being there at the right time. As this notion develops, banks that embrace this new dynamic relationship armed with a strategy that maximizes digital engagement and leverages the power of ecosystem has the first mover advantage. What customers want is a financial partner, a friend along their journey. Are banks ready to fulfil this friendship paradigm with customers or are they still waiting at the branch office in a suit, bestowing favours on those whom they find worthy?

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