Messenger banking as a tool for ultimate cost cutting

Our entire technological and business environment is changing. Changing very fast and this is the biggest problem for many “traditional and classical” companies and businesses.

Just one example.

In 2014 Google has acquired the “Nest Lab” company for … 3.2 billions USD! It is the company that got this time on the market only two quite simple products (thermostat and fire alarm). In 2016 Diebold has announced it is going to acquire Wincor Nixdorf for … 1.8 billion USD. Wincor is a company with almost 10000 employees and hundreds of products!

For me this is a clear sight the entire business system is going to change very fast!

Banks are not the exception from this changing process. Quite in contrary, I suppose a lot of them soon will become victims!

The cost cutting process is becoming very important and very valuable for banks. The margin is shrinking. The customer’s loyalty is disappearing!

Old banking products are not so profitable as before.

The business environment is becoming hostile for most of these financial and organizational behemoths. They are loosing “bottom feeling” , they are loosing environment where most of their potential customers are “existing”! The good news – not all of them!

In the situation when the retail customer is able to change the bank three times just siting in the subway under way to his job banks must be prepared for new way how to communicate own customers and satisfy them.

They must be ready to meet customers in the environment where they are presented. And most of them are “living” today in social network environment!

Messengers are integral part of this new business space. Just look around yourself and you will recognize the big part of people around you is looking at their phones. They are not talking to the their phones they are pushing buttons of their phones! This means they are either checking their Facebook, WhatsUp , Pinterest or Instagram or … they are chatting!

The messengers phenomenon is difficult to explain and is difficult to understand by many “traditional“ companies.

Possible this is one of the reason why up to now no “Messenger based Mobile Banking” has emerged?!

We suppose we are those who can close the gab – we have brought on the market “Messenger Based Mobile Banking” system – MBMB.

Everybody today can get a chance to research how this kind of system could look like – you just need to install “Telegram” messenger on you phone (tablet, notebook, PC, etc.) and emter the bot name @ChatBankbot .

You will be immediately brought to the model bank “CahtBank” and … you will be really surprised how simple and easy the MBMB could be!

We suppose this is exactly the banking channel currently most retail banks need to attract new clients and satisfied the old!

Simplicity is not just one advantages of the channel! We strongly believe MBMB is the tool than can support the cost efficiency of almost all (retail) banks!

The main idea here is to combine cheap distribution channels (like Telegram or Whatsup messengers) with cheap electronic wallet processing.

Of course this combination is requiring specific banking products – simple and easy for understanding by any retail customer.

For example, it can be one “light” account with allowing only simple operations – funds transfer to phone number (instead of bank account) ,just one type of “simple” deposit, one type of “simple” loan and for example – utility payments.

The products must be simple in order to avoid the customers calls to call-center calls and also branch visiting.

As a result we will get “a construction” that can be served by very limited number of employees and with very low level of expenditures!

This approach could make big impact to the bank activity, for example in the credit business area! The expenditures to serve the product (loan) will go down will go down what will make it possible to lower the loan interest, because the bank will not need the high interest rate to cover high risk and related expenditures.

This will attract more customers interested to get a loan.

The next step in developing the related business – the low interest rate for loans will bring the low risk for clients.

As a result business profitability will grow up!


EduardasVaigauskasEduardas Vaigauskas
General Manager at Cashphenix International LLC