New research has shown that 69% of customers want innovation from their bank. According to new research which surveyed 5000 customers in six European countries (UK, Germany, Belgium, Netherlands, Spain and France), only 12% fully agreed that their bank is currently innovative. Only 12% of customers agree that their bank is different from other banks while 33% ‘somewhat agree’.
Further to this, out of all the people who said they were interested in new technology, 33% are ready to switch to banks that offer a more innovative product. This might explain the meteoric rise of digital banks like Monese. Pure digital banks appeal to those who are ready to move away from traditional banking in favour of time-saving, fuss-free, 24hr, intuitive banking.
The consumers surveyed also revealed that they are willing to share more personal data if they could get a better, more digital service in return. This data is something that the legacy banks are missing. Typically, only 3% of customer data is tagged, of which only 0.5% is analysed. Most companies are missing out on 99.5% of their leverage with their customers. According to Dr David Andrieux this ‘highlights a lack of engagement on the customer side as well as a lack of added value on the bank’s side’. He went on to add ‘from the findings, customers are happy to switch if they find better offerings demonstrating that [for traditional banks] playing it safe is the riskiest strategy of all.’
If banks want to keep up with the phenomenal growth of digital banks they must innovate and create value for their customers through exciting non conventional products and initiatives that use a platform designed for the digital age.