Consumers are clinging to their physical cards, and #Wells #Fargo #customers especially. Wells Fargo customers were the #largest #users of #debit and pre-paid cards in the U.S. in 2016, according to Nilson Report, released last week. The report logs the top debit card issuers in the country by purchase volume, which was up 6.7% for 2016, compared to the […]
Bank Innovation
As only the second #Chinese online lender to go public in the U.S. (first was Yirendai in 2015), #China #Rapid #Finance is confident its new listing on the New York Stock Exchange will lead to growth. The company, a consumer credit marketplace in China, focuses on providing credit access to what it calls “EMMAs”—“emerging middle-class, […]
Bank Innovation
#Pegasystems uses robotic #software to get #institutional clients into their systems across the globe and across lines of business while meeting the regulatory requirements.
Tom Groenfeldt – Financial Technology
#Wells Fargo is bringing #PayPal to the point of sale. The bank’s #mobile #customers will now have the ability to make purchases through the mobile wallet in-store, as well as through mobile and online methods, the bank announced today. #Android Pay announced an agreement with PayPal this morning, which means more #banks should announce PayPal […]
Bank Innovation
Imagine waking up to an email from your bank saying that all your accounts will be shut down in a month, through no fault of your own. Seems unlikely, doesn’t it? How about getting that same email from a digital-only startup bank? Somehow — despite the increased popularity of #fintechs &8212; this seems more likely (or […]
Bank Innovation
The #Apple Pay universe just keeps on expanding—this time, it’s to international #money #transfers. iOS users will now be able to use Apple Pay for their payments when sending money transfers with global payments provider #Western #Union, the companies announced today. Khalid Fellahi, senior vice president and general manager for Western Union Digital, noted in […]
Bank Innovation
Good baseball center fielders can consistently catch a line drive over second base. They do that by instinctively running to a spot that allows them to intercept a ball that is moving at a fixed speed in pretty much a straight line. #Banks would love to be able to use that same technique to predict and meet customer needs. Just predict where the customer is #going, and then stand underneath that spot to catch the mortgage application or the account opening. Unfortunately, customer needs in banking are no longer behaving like line drives. Instead, they’re behaving like knuckleball pitches that move fast, but in erratic and unpredictable directions.
Read the full report
Accenture recently examined rapidly changing consumer expectations in banking in our 2017 Global Distribution & Marketing Consumer Study, which gathered the views of more than 33,000 #customers across 18 markets. The results were surprising. For example, customers’ biggest driver of loyalty now is their willingness to trust banks to protect their personal data. Transactional trust used to be consistently high across the banking industry, but now consumers are telling us that it is a point of competitive differentiation, so cyber security is no longer just a hygiene factor, it’s a customer acquisition tool. The survey also showed a paradox around attitudes to branches. While only a minority of customers now cite branches as their top driver of #bank selection and retention, over 80 percent of them (including the vast majority of millennials) still want the option of visiting a branch—an option that involves high operating costs for the bank if it isn’t a primary driver of account acquisition—so banks need to find the ‘branch lite’ sweet spot that delivers the option value without fatally undermining their economics.
One conclusion to draw is that customer expectations and needs in banking are far more malleable than they used to be when you had well-established industry norms like the s-curve describing the relationship between branch share and deposit share in a local market. Their experiences on digital platforms like Facebook, Amazon, Uber and Google are shaping what they expect from their bank and this highly iterative process is leading to rapidly changing priorities. To track and capture these customers, the implication is that banks are going to need to stop trying to act like center fielders and start behaving more like echo-locating bats. Bats’ flawless adaptive behaviours, including ultrasonic pulses, agile flight and head-aim control, allow them to detect and capture free-flying insects in incredibly narrow time windows. Likewise, banks need to understand not just where customers are, but also how to jink and weave to zero in on what they are going to need and when they are going to need it.
While ideally banks should use complete customer genomes to track individual behaviours, our research pointed to three distinct consumer personas—Nomads, Hunters and Quality Seekers—with broadly similar needs that banks can use to shape offerings and #marketing tactics. Within these broad personas there will still be a lot of insects and knuckleballs that are moving erratically, but at least banks will be in the right part of the ballpark to make a play on the customer with an offer or piece of advice that has a higher probability of being timely and relevant.
I invite you to read the key 2017 Global #Distribution & Marketing Consumer Study findings in the full report, Beyond Digital: How Can Banks Meet Customer Demands? It also details the three consumer personas and implications for banks as they seek to understand—and market to—today’s banking consumers.
The post Aim bank distribution and marketing where customers are going to be appeared first on Accenture Banking Blog.
How should FIs leverage #data to better engage #customers? Well, according to Cardlytics President and co-founder Lynne Laube, you follow the money. “Three households who look identical demographically…are going to get the exact same credit offer,” said Laube at the DataDisrupt conference today. “They look very different when you understand where and how they are spending [&8230;]
Bank Innovation
It seems that the clouds have cleared for non-prime marketplace lender #Elevate. After delaying the pricing of its initial public offering in January of last year due to “market volatility”, Elevate filed its form S-1 with the SEC this morning, offering 7.7 #million shares, valued at $ 12 to $ 14 per share. The company’s CEO Ken Rees said […]
Bank Innovation
What if, instead of #cards, consumers just had to put in a code—and then #another code—to get access to their money at the ATM? #Wells #Fargo announced today that its #customers now have full access to about 13,000 card-free ATMs, installed across the United States. Rather than inserting a card at these ATMs, Wells customers […]
Bank Innovation
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