McKinsey commands banks to “Build digital marketing capabilities that equal e-commerce giants”

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26/01/2017

A recent article from McKinsey highlights a new wave of banking challengers – the fintech companies – who may have not only winning models, but they are also very well funded.

Retail remains the main focus for the challengers but the payment network, and lending and financing are also attractive areas.

The level of financing is accelerating exponentially. $12.2 billion deployed in 2014 alone.

McKinsey has identified six “markers” to identify the attackers most likely to succeed.

Advantaged modes of customer acquisition
Digital only approach giving significant reduction in cost to serve
Experimentation and innovative uses of data
Segment-specific customer value propositions
Co-opting existing ecosystems of banks
Managing risk and regulatory stakeholders

The business model and culture of banks will need to be repositioned if they are to successfully adapt to the avalanche of fintech challengers. Added to that, McKinsey then clearly states that considerable time and investment will be required to “Build digital marketing capabilities that equal e-commerce giants”.

In yesterday’s world, there would be only one solution – a hiring spree to recruit senior level marketers to drive the required change. However, in the gig economy that is also driving the fintech revolution, there are better recruitment options with lower risk and potentially higher returns. gigCMO could be your fractional CMO recruitment advantage. You don’t have to be a bank to be facing the same challenges to compete – maybe it’s time you considered a lower risk, highly effective gig with us instead.