Since the 2008 financial crisis banks have struggled to win back trust and positive consumer perceptions. With the emergence of disruptive fintech companies large banks now have an even tougher time in rebuilding the once strong relationships they had with their customers.
The surge in mobile only banking has changed, for traditional banks, how they approach customer loyalty. The inaugural FIS Consumer Banking PACE Index show that consumers now believe that the financial industry is successfully delivering digital solutions, but this does not fully reflect the consumers true feelings.
A large, multi-year quantitative study across more than 250 brands and over 6,000 respondents validated a strong correlation between love and profitable consumer behaviours. The market research conducted by Coherency has shown that actual love for a brand is a powerful driver of engagement, loyalty and word-of-mouth for the brand.
Love, in terms of human relationships, can be scientifically defined by 3 key areas – chemistry (excitement that leads to anticipation and delight), fulfilment (both rational and emotional) and compatibility (finding common ground to build a lasting relationship). For the banking industry, emotional fulfilment and compatibility are the main components that impact on banking consumers the most. Understanding this allows banks to see what consumers love — or lack thereof — for their brand.
The trick is reaching consumers at a subconscious level, then trying to deepen the love. When asked about what they want from a bank consumers usually state their rational needs including account features. Consumers don’t usually share their emotional reasons for selecting their bank, but this doesn’t mean they don’t have an emotional response. A large, multi-year quantitative study across more than 250 brands and over 6,000 respondents validated a strong correlation between love and profitable consumer behaviours.
This is where new fintech companies are outperforming legacy banks. Fintech companies have invested millions into understanding their customers, on an emotional level. They understand what drives brand love across their target audience which enables them to go beyond the basic rational connection — they deepen the emotional connection, and can even predict certain consumer responses, such as the likelihood of selecting their banking product, engaging with the brand in social channels, and referring the company to a friend through word-of-mouth. Those banks that do embrace quantitative emotion-based data in the way that fintech companies do, could very well build banks that are as loved as the likes of Amazon and Apple.