PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Amazon Effect Impacts Australian Banks

By Raymond Pucci
June 6, 2017
in Industry Opinions
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

The Amazon Effect crosses continents and reaches Australia’s banks. As the following article describes, Amazon’s ubiquitous e-commerce presence and widespread portfolio has increased customer expectations of their product and service providers.

Such is the impact of Amazon that it is even affecting what people expect from their bank. That’s the view of the chief executive of fintech firm Avoka, Phil Copeland, who said the user experience provided by the shopping giant has fed into an expectation among consumers that you should be able to sign up for products easily and simply online.

With banks also nervously eyeing fintech competitors, the dynamic is forcing banks to sharpen their focus on “digital customer acquisition”, or online sales.

“Amazon has really changed the landscape a lot, for a lot of people. There’s an expectation that if it’s not as easy as doing business with Amazon, then what are you doing wrong?” Mr. Copeland said.

In response to these pressures, banks are overhauling their systems to offer all manner of products, for both retail and business customers, on mobile and digital devices. Mr. Copeland’s Avoka is seeing the demand first hand, as a software firm that specializes in helping big banks with “customer on-boarding”.

A recent report from Avoka, which has clients including Westpac, Bankwest, Macquarie Group, CUA, Citi and HSBC, said Australian lenders were more advanced in digital sales than European and United States banks. The report found 49 per cent of personal banking products could be opened on a mobile device in Australia, but a much lower share of small business products were available on a smart phone.

Amid the wave of fintech firms eyeing banks’ profits, the domestic banks have invested heavily in selling their products through mobile banking, with National Australia Bank’s UBank last year citing strong growth in the number of people taking out a home loan through a phone.

ANZ Bank also said its agreement to provide Apple Pay has helped its product sales, including in homes loans. Australian bankers have also acknowledged the impact online giants are having in all manner of industries.

The good news for Australia banks is that they are quick to react in emulating Amazon’s typically smooth and seamless buying process. The banking industry realizes that customers expect more than just account access from digital platforms, especially mobile. Key drivers for mobile use include providing an integrated set of services that cement customer relationships, including payment enablement, loyalty, customized marketing, and partner programs. In contrast, Android, Apple, and Samsung Pay have learned that mobile use has to be about more than just one function, which is why their user adoption has lagged expectations. For the most part, Amazon gets it, and those vertical markets that choose to pattern their own processes after them should be ahead of the curve.

Overview by Raymond Pucci, Associate Director, Research Services at Mercator Advisory Group

Read the full story here

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: Banking ChannelsInternational

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Banking-as-a-service BaaS

    Remodeling Main Street: How Community Banks Can Leverage the Banking-as-a-Service Paradigm

    June 12, 2025
    How Employee Performance Enhances the Customer Experience

    Three Strategies to Maximize Loyalty in the AI-Driven World 

    June 11, 2025
    PFM tools

    How FIs Are Cutting Through Subscription Clutter with PFM Tools

    June 10, 2025
    child identity theft

    Stranger Danger: Protecting Your Children from Identity Theft

    June 9, 2025
    agentic commerce

    The Agentic Advent: How the Next Iteration of AI is Shaping Commerce

    June 6, 2025
    payments hub, digital banking

    All in One: How a Payments Hub Eliminates the Pain Points

    June 5, 2025
    Vertical SaaS

    From Underdogs to Industry Leaders: How Vertical SaaS Powers Mid-Sized Firms

    June 4, 2025
    credit card surcharging

    A Perfectly Understandable Bad Idea: Why Merchants Should Reconsider Surcharging

    June 3, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result