Posted on: Thursday 29th of November 2012
We’ve had some great media coverage of our new report ‘What are banks for? Customer Loyalty in Retail Banking’.
Banking Technology highlights the ‘Race to build customer-centred banking is on’ and the report’s findings that ‘the banks surveyed by the study rated the importance of information-driven services to customer loyalty very highly, at 8.2 out of 10.’
Information Age reports ‘banks see information-driven services as a way to improve loyalty’ and carries a quote from Ctrl-Shift Strategy Director Alan Mitchell, “The first wave of online banking was really just a sort of digital version of what you had already had, therefore it wasn’t adding extra value,” he says. “Once you start crunching the data, and using it in a way that helps individuals manage money better, it really begins to add value.”
“In the past, banks have all ignored these things because it’s been the easiest and best way to make money,” Mitchell says. “Instead of hoodwinking customers and trying to confuse them with the data they have on them, we’re realising that there’s an opportunity to be different….there is a competitive imperative because of what’s happening in the market.”
FStech leads with ‘Banks face up to changing times’ and writes ‘‘Improved engagement and trust’ and ‘greater customer satisfaction’ are seen as the key benefits of providing information services, and retail bankers report a growing demand for these services.’
Out-Law comments that ‘banks must strive to become the organisation which controls the ‘data dialogue with the consumer’.
In our report we highlight two different types of information-driven services which offer the opportunity to differentiate banks’ offerings and build trust. The first is online services that help customers in managing their personal finances such as budgeting tools and peer to peer advice services. The second is information eliciting services that enable the transferral of information between customers and banks, such as information on lifestyle, or updates on future changes to circumstances. These personal information management services (PIMS) help customers understand their own behaviour and add new dimensions of value in terms of richer insights and greater convenience. They offer the chance to change and widen the relationship between banks and their customers and, as the report finds, they have the potential to completely transform the banking industry.
If you would like more information on the research which can be found here, the findings or to discuss the opportunities arising from new personal information management services please contact Chris.