Crowdsourcing, drawing information from a large group of people, has been gaining ground as a source of innovation in a wide variety of industries. It may seem hard to understand how crowdsourcing can apply to finance, especially with the regulations and privacy issues that surround the industry. However, some financial institutions are taking the lead.
Benefits of Crowdsourcing in Finance
A financial organization has a lot to gain from crowdsourcing. Your company can connect with employees, customers, or stakeholders to find new ideas. These ideas can help streamline processes, improve productivity, and identify new strategies that will help build the financial institution of the future. With crowdsourcing you can gain:
- Feedback. At the most basic level, crowdsourcing allows you to see what’s working and what’s not from the perspective of customers, employees, and stakeholders.
- Ideas for Improvement. Whether it’s cost-savings or an innovative way to approach a business process, crowdsourcing allows your financial institution to gain new ideas for improvement.
- Customer Insights. Do you wonder why your customers aren’t buying a specific financial product, no matter how much you promote it? Ask them! Whether they need education or a better understanding of risk, you’ll gain new ways to relate to them.
- Risk Mitigation. When stakeholders can be part of product and service development, you’ll get innovative ideas on how to control risk and maximize return.
- Increased Customer Loyalty. Customers want to be heard. When they feel like you truly care about their input, they will be loyal to your institution. Loyal customers save you money and increase profits.
How Financial Institutions are Using Crowdsourcing around the World
Many financial institutions have already realized the benefits of crowdsourcing by running their own initiatives. Whether it’s exercising corporate responsibility or coming up with new concepts for their offices, organizations have increased innovation through crowdsourcing. Here are some examples.
- Standard Bank wanted to give back to those in need. Through crowdsourcing, they were able to collect ideas for ways to bring clean water to Africa. Using Ideascale, they were able to collect concepts and designs in seven different categories, allowing them to find new and unusual ways to give back to this significant need. They also built brand awareness and provided positive public relations material by giving back to those around the world.
- DBS Bank in Singapore needed some new ideas for their branch offices. They specifically wanted to draw a younger crowd to their bank, but they weren’t sure where to start. As a result, they chose to ask Generation Y directly through crowdsourcing. Using a Facebook contest, they solicited design entries and received 80 submissions. Everyone could participate, but 80% of the submissions were from those under 26, exactly the audience they were targeting. In fact, the youngest submitter was only 10 years old! The bank awarded cash prizes to six winning designers and opened the “DBS Remix” branch in 2011.
- HSBC Expat, a financial institution that helps international travelers keep their money in one place, was looking for a way to draw more of the expat community. As a result, they launched HSBC Expat Hints & Tips, a crowdsourcing platform aimed at those who live and work overseas. By featuring tips from expats for other expats, HSBC was able to become an information hub, which promoted their brand while providing valuable information to their clients.
These are just a few examples of how financial institutions around the world are using crowdsourcing to innovate and thrive. For more information about how crowdsourcing can benefit your organization, download our Crowdsourcing in Finance report today!