Banks have a unique opportunity to capitalize on the vast amounts of customer insight they hold to go beyond simply facilitating payments. They can reinvent themselves as an Everyday Bank, helping customers reach decisions about what to buy, when and where to purchase, and even helping to negotiate the best deals in a ubiquitous format.
Once banks crack the code on how to deliver a better experience to customers, they will position themselves to seize phenomenal opportunities to engage with customers.
As banks look for new revenue opportunities, they have to focus on existing customers because new ones are hard to come by. But even trying to increase business with the existing base is a big challenge because banks have made interaction with customers too complicated and frustrating.
Banking isn’t what it used to be. While the general premise hasn’t changed much over time, the ways people manage their money are changing with the times. Digital, for example, is becoming a major avenue for many, and a significant portion of Americans actually prefer to handle their banking away from branches and tellers, according to Nielsen research. In fact, people who bank away from physical branches make up a significant portion of the “Connected” segment of the population and prefer to handle their finances via mobile devices or call centers.
When did you last use the ATM and how much did you take out? Are you sure? A new study says our recall regarding cash machines and other financial matters is more often wrong than right.
Every day new banking studies come out and look at customer expectations and behavior in the mew omnichannel banking world. Do customers like the branch or not? What features do they want in a mobile app and what features do they not use at all? This data is carefully studied by bankers and consultants and proclamations and predictions are issued as a result.
It’s time we looked at innovation and how it can be used to drive new customer propositions. ‘Oh no, not that buzzword again,’ I hear you all shout. But actually, I want to look at lack of innovation. Let me explain.
I was recently talking to a product manager at a bank about their new payments renovation project that was just starting. I was rather surprised to learn that without knowing all that was possible, they were already saying the first phase of the project would achieve nothing new whatsoever. The reason why is because their IT department has a policy that for anything new coming into the bank, the first phase is to always replicate what the bank is currently doing. The bank claims this is done to ensure that no functionality is lost with new Software.
How badly do consumers want mobile banking? It depends on which US city you’re talking about. This study takes a look at varying levels of interest in mobile banking for 12 major metro markets.
In 2009, 8% of shoppers on FindABetterBank indicated they “must have” mobile banking with their new checking account. By March 2014, that number grew to 30% — nearly quadruple. However, significant differences emerge when you break the data down at a local level. For example, research in March 2014 revealed that only 22% of shoppers from Detroit demand mobile banking compared to 39% of shoppers from Baltimore — almost twice as many.
Bank branches are lonelier places these days. 58% of those under 30 have visited a branch in the last month. But don’t rush to shutdown your brick-and-mortar locations yet… half of all Americans still bank in Person.
Three in ten Americans haven’t visited a bank or credit union branch in at least six months, according to a report from Bankrate.com. But half of Americans have visited a branch to conduct personal financial business within the past 30 days