From the 2008 financial crisis to the enormous Equifax data breach, news outlets regularly report on data breaches in almost every industry. Since information has become so valuable, securing data and creating a systematic framework for building trust in a digital ecosystem is key to a sustaining a positive reputation and continued business growth. Brands that create and retain trust are more likely to grab market share from those who do not.
Lessons Learned from Cable TV
Trust is particularly valuable in industries with high friction to change, such as with cable TV. For many years, customers were dissatisfied with the cost, customer service and monthly rentals for cable boxes. Because there weren’t many alternatives to cable in most geographies, the customer base was captive - and quietly irritated. As a result of introducing digital broadband and fiber with alternatives such as Apple TV, Roku, VUDU, long-time disgruntled cable TV customers began cutting the cord - quickly.What happened in the cable TV industry illustrates the importance of creating and sustaining digital trust. This example makes clear that building trust should be a significant business strategy, particularly as the trend toward digital and mobile-first engagement models grows.
Establishing Trust is an Opportunity
Customers have long been captive to established banking models with high friction to change. But now, quietly dissatisfied customers have options in emerging banking models to consider. Online credit card applications, mortgages, Apple pay, PayPal and other products are changing the way banking is done. They are beginning to define a new competitive landscape, where growing distrust in established firms and practices have created opportunities for new disruptive FinTech challengers and competitors from outside the financial services industry. Customers are gravitating toward new providers, new banking and investment solutions, and even entirely new currencies.
