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05. 02. 2018

New types of banking customers to emerge: are you ready? – W.UP Digital Banking Weekly

New types of banking customers to emerge: are you ready? – W.UP Digital Banking Weekly
Technology can help financial institutions target the members of new behavioral customer segments, like the ‘precarious passives’ or ‘delayed dreamers’. Perhaps open banking is a tool as well, although high hopes on new products using open APIs could be far from current reality when it comes to personalized banking services.

5 new consumer segments banks may be overlooking

Do you know the precarious passives, success-driven savers or delayed dreamers? They belong to some of the five psychographic behavioral segments many banks still overlook when targeting new clients, according to The Financial Brand.

So what is the strategy to target delayed dreamers, for example? They want financial security, but don’t know how to get there and don’t trust their own abilities. Banks should educate them about financial literacy and give them automated personal financial management tools.

Open banking and personalized service: high hopes vs. reality

“What has my bank done for me lately? They never give me advice, call me proactively or tell me how I can run my business smarter,” laments Chris Skinner in his blog about his reality after hearing about the planned new services of a Nordic bank.

The bank had been mapping financial moments – getting married, buying a house or having a baby – and had started to reimagine the whole customer experience in using APIs. But Chris Skinner reckons open banking should start at making simple services easier for customers, as it is all about “customer focus first and foremost”.

Transferwise launches new account, card to go global

TransferWise is launching a “borderless” account and debit card globally, which allows customers to effectively circumvent the established banking system, Business Insider reports.

The entire set-up of a borderless account is free for consumers and will be made available for businesses later in 2018. Launching the new products signals Transferwise’s ambition to become a global banking provider for consumers as well as businesses.

In pursuit of AI perfection: it could be a long wait?

While AI won’t change a bank’s business overnight, it’s important to start experimenting with the technology now. Step one is to establish who will own it and drive the AI strategy across the business, said Martin Haering, head of marketing at Finastra.

Over the course of the next 10 years, banks will be seen more and more as commodity service providers, like electricity, internet or telco suppliers. In this respect it will be vital for them to seek and use AI to differentiate themselves, he added.