Frugal banks support client advisors as they are the key differentiators, and those with a better understanding of clients’ expectations beyond financial matters and partner with expert providers will be at the forefront during the crisis.
Fremont, CA: Today, the market demands simpler and cheaper solutions that are effective and customized to the customers. The solutions should also be easily accessible through digital platforms. The overall focus on customer needs can be accomplished with the idea of frugal innovation. Although still unknown in the financial landscape, this unique approach is originated from India. Frugal innovation aims at primary functionality while minimizing complexity and eliminating unnecessary features. Prototyping and iterative customer interactions speed up the learning process, and the fundamental benefits of a solution is quickly tested and in a resource-efficient manner.
Frugal innovation pushes the customer’s view, type of application, and environment into the core of the wealth management process and is only implemented if it relates to the customer’s perspective. This approach redesigns the value chains and products to cater to wealthy clients in certain situations, generates value with fewer resources, and translates challenges into opportunities. Adopting open innovation concepts for development and commercialization promotes frugal innovation as value-added can be produced effectively in a network of different actors in a financial services landscape.
Frugal Digital Wealth Management
The democratization of investing and the journey for simplicity reflects trends such as minimalism, including the appreciation of a simple, sustainable lifestyle and the conscious minimization of material goods. This means a shift from conventional banking to frugal, digital, and cost-efficient services for wealth managers. Frugal banking can be a solution to the Covid-19 pandemic to create and win new wealth markets and segments.
Check out: Top Banking Tech Solution Companies
