With the democratization and advancement of technology, new competitors have appeared in various industries.

These are companies that leverage technology to offer products or services in a more efficient, convenient, and often cost-effective way compared to traditional counterparts.

This digital disruption can be seen in various sectors, including transportation, hospitality, retail, and finance.

Keeping up with them requires said traditional players to step up their game and come up with new strategies to optimize their advantages.

TD Bank’s CMO, Betsey Chung, sat down with Ben Kaplan for TOP CMO to discuss her approach to competition from neobanks, the digital-only players in banking.

Betsey shared the three pillars the company relies on to remain competitive.

Learn all about them below!

E - Ease

Prioritizing the pillar of ease is a non-negotiable strategy for companies. 

Whether operating in traditional brick-and-mortar settings or fully embracing digital realms, the commitment to simplifying interactions is foundational.

Digital-only players often excel in offering streamlined, hassle-free experiences. They don’t have to manage all the infrastructure or all the people. They can just focus on one underserved market, and that’s it.

So traditional businesses must adapt by enhancing user interfaces, optimizing processes, and reducing friction points.

By prioritizing simplicity and reducing unnecessary complexities, companies can ensure that customers navigate their products and services effortlessly. 

A commitment to ease contributes significantly to creating a positive and user-friendly experience, which in turn fosters loyalty and positive word-of-mouth.

V - Value

The value pillar is fundamental to making a significant impact on customers' lives.

Customers' time, attention, and resources are scarce and important to them. So businesses must go beyond the transactional to deliver products and services that genuinely enrich their lives.

Digital-only players, on the one hand, often excel in innovation and agility. They offer specialized services that challenge traditional businesses to offer more than just commodities.

On the other hand, however, their usual niche specialization means they sometimes only offer a specific type of service or product rather than a broad range. 

For customers who seek to consolidate most of their financial dealings with one institution, this could limit the perceived value. 

Traditional players, then, might have an advantage in delivering a more comprehensive and interconnected value, due to their broader suite of services and established relationships. 

Their size, stability, and diversified offerings allow for long-standing and deeply rooted benefits that can make it challenging for neobanks to compete on this front.

So the mission is to leverage this advantage to consistently provide innovative, competitive, and genuinely valuable solutions, and create a lasting positive impression in customers' minds.

A - Advice

The provision of advice, especially in the form of trusted guidance, stands as a crucial pillar. 

As digital-only players disrupt traditional models, stability and experience become crucial differentiators.

This is especially significant during times of economic uncertainty when customers seek dependable partners. 

Digital-only players usually don’t have the brand equity, earned trust, or even their location to their advantage.

Established companies can leverage their history and expertise to position themselves as reliable sources of advice and support.

Additionally, their large size and –sometimes– multinational presence means they may have headquarters in countries where the economic situation is better, which, in turn, guarantees further stability.

Large support teams and well-oiled lines of communication for customer service serve as a differentiator. New, smaller competitors may not have the structure for advisory.

By offering valuable insights and guidance, companies not only demonstrate their commitment to assisting customers through challenges but also solidify long-term relationships built on trust, setting them apart from other players.

Working smarter

Digital-only disruptors shake up their industries.

Their low-cost structure, tech-forward presence, and niche strategies can make them more efficient and attractive.

Traditional players must accept the fact that they can’t compete in some aspects, but never give up the fight. Most times, they can get an edge over their competitors in other areas.

So, as a leader, strive to create easy-to-navigate products and swift solutions to match the disruptors’ service.

Make use of your broader range of products and services to add holistic value that creates multipurpose relationships with customers.

And leverage your expertise and size to go beyond mere transactional interactions and provide clients with guidance and support.

The E.V.A. pillars have helped companies like TD Bank remain relevant against the increasingly popular neobanks.

What could they do for you?

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