By Carter Hunt, Western Union
Technological advancements in the financial services industry are
evolving through complex tools like AI-powered analytics and voice-activated
capabilities, offering added levels of insight and convenience. We are seeing a
shift toward always-on service and a desire for instant gratification, marked
by Dell
EMC Research’s latest finding
that a consumer’s average attention span as it relates to online
activity is six seconds. As such,
connectivity — amplified by the rise of mobile technology — has fundamentally
changed how we communicate, work, shop and transact with one another.
These types of technological advancements in financial services,
particularly digital transformation efforts, are revolutionizing the way
customers shop, and ultimately, the retail industry is similarly capitalizing
on this through partnerships and transitions to the online world.
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The brick-and-mortar retail industry is continuing to gain momentum, with
research
firm JLL estimating that e-Commerce
retailers will build 850 physical stores in the U.S. in the next five years. In addition to individual brands like Bonobos,
Leesa and Allbirds opening physical stores, companies and investors are also thinking
of other innovative ways to capitalize on this trend and expand their footprint,
through pop-up shops and experiential spaces. For example, TSX Broadway, a
retail and hotel complex that will open in New York City in 2021, will act as
an experiential retail space and consist of 10 stories featuring
direct-to-consumer showcases, specifically curated with “as-seen-online” brands
that will effectively connect digital and physical components of shopping.
As it relates to financial services specifically, we are witnessing the
expansion of money transfer applications and financial technologies, as
customers’ growing levels of mobile access increase demand for convenience at a
moment’s notice. From banks adding new AI-driven features to existing products,
to Wealthfront announcing it would now offer an automated financial
planning tool for free,
financial services companies are expanding their technological capabilities and
extending them to long-standing retailers.
Customers also are becoming more comfortable with digital financial
services. A
recent study by Accenture found that 40% of Gen Y respondents would
consider banking with Google or Amazon. Moving forward, retailers must make a
commitment to innovation that will enable them to support their customers every
step of the way, through multiple touch points such as social platforms, mobile
applications and 24/7 customer service capabilities. At Western Union, we are
no stranger to this trend. It’s why we actively look to expand our
existing relationships with retail companies
like Albertsons
Companies and Walgreens, as well as form new ones, expanding
our digital expansion efforts to increase customers’ convenience
levels as they carry out everyday tasks.
Ultimately, the evolution of e-Commerce and online services has created a
positive disruption and sparked innovation in companies across the globe. Product
and service providers will need to apply their creative thinking not only to
the innovations they are introducing to the marketplace, but to the channels they
are providing to customers.
Today the world, very literally, is at arm’s reach for consumers, in part
due to advancements in financial services. Companies can continue to succeed,
so long as they continue to dedicate time and resources to think about how
their brands can take advantage of technological advancements to allow
consumers to transact with maximum convenience and ease.
As Senior Vice
President and General Manager — North America, Carter Hunt leads the North
America organization for Western Union. His
responsibilities include the ownership of revenue and profit, developing the
strategy, general management, and the ongoing leadership of Western Union’s
overall North America business. Hunt is based at Western Union’s global
headquarters in Denver. He originally joined Western Union in 2005 as
the Vice President of National Accounts, and he has held the roles of SVP,
Global Key Accounts and SVP of Commercial at Western Union. Prior to joining
Western Union, Hunt spent 14 years with PepsiCo, Inc., where he held a variety
of roles in sales management, marketing, and joint venture development.
