With the fast-paced changes in customer behavior, increased banking via smartphones, divergent user needs, and demands flag the right time for developing new partnerships for both banking and insurance industries. Without any doubt, the partnerships could provide and demonstrate new possibilities and benefits for the insurance and banking industries, not only by expanding business reach but responding to the customer needs with matching services and products.
Can insurance and banking industry partnerships reconstruct the sector, increasing technology expertise, and unlock new opportunities in the market? Explore the answers further in this article!
Connectivity and digitalization ensured
Connectivity and digitalization are trivial factors for every business, opening a new world of opportunities, and using technological solutions, matching products and services for specific customer demands. Therefore, without any doubt, digitalization will only increase its importance for the upcoming future for both the banking and insurance industries.
The mutual partnership between insurers and the banking industry could be a win-win situation in tackling business challenges, meeting expectations, and ensuring a positive digitalization process for both the insurance and banking industries. That is one reason why the banking sector starts recognizing the real value of digitalization and embedded insurance model integration in their financial services. This way, it helps financial service providers provide a unique value proposition and could be used as an anchor to engage with the consumers daily, providing innovative and digitalized insurance propositions.
One of the success stories is Neobanks Revolut’s recent partnership with the Belgian insurtech startup Qover, enabling the users to browse, track and monitor claims in one place, with push notifications, allowing users to be up-to-date at each stage of the claims process. The insurance solution is fully embedded in the Revolut app, allowing customers to access the three products in real-time from Plus, Premium, and Metal accounts, providing easy accessibility and comfort.
To summarize, the partnerships between the Insurance and Banking sectors could create new business openings, making sure that the financial products or services are the perfect fit with the bank’s overall promise, leading to cost-efficiency while selling insurance online and providing an excellent UX and as a result, increased conversion rates.
Convenience, speed, and availability
According to the statistical data, in the last ten years in Austria, the share of digital shoppers increased from 37% to 60%. Due to the rapidly-changing shifts in consumer behavior and consumer expectations, convenience, speed, and availability are set as the main criteria in consumer purchasing decision making processes across all business sectors. Today, e-commerce is used by more than half of the resident population, with more than two-thirds of young people already, indicating every business’s dependence on digitalization and process digitalization in the future. And insurance and banking industries are not exceptions.
While comparing both the insurance and banking sectors, the banking industry is a decade ahead when it comes to digitalization, demonstrating the potential of collaboration in helping insurance providers to progress faster and stepping their digitization up. The banking industry also has a deep insight into their customer data and behavior, proving that the mutual collaboration could help insurers develop offerings that would ascertain 21st-century consumer desires, opening the digital path.
Similarly, for the banking industry, embedded insurance can bring opportunities to have a selected dedicated partnership based on geographical metrics or client segment, with tailored products ensuring a perfect service or product fit for customers. As a result, committed partnerships and matching product and service provision for the consumers will lead to additional added service value and consumer satisfaction, providing speed, convenience, and availability of financial services or products.
Today with increased mobile phone usage, rapidly changing customer financial demands, consumers are willing to have products and services one click away, ideally, using mobile devices. Therefore, the insurance and banking sectors’ immediacy and awareness in the latest consumer demand shift could help industries succeed with mutual collaboration to address consumer pains, resulting in increased engagement, conversion rates, and resource sustainability in the long term.
That is why, in this fast-paced world, banking and insurance industries must start to be open to partner up, designing, and providing value and innovative solutions for the current consumer. Industry instancy in knowing the latest customer behavior trends and adaptation in digital transformation will be crucial to succeed and unlock the market’s opportunities.