Who is the überbanked consumer? And how to compete for this new customer segment

By Stacy Gorkoff | 20 February 2017

It is becoming easier and easier for consumers to assemble their own portfolio of banking services from multiple institutions and providers. How do you convince customers to remain loyal, and concentrate more of their profitable business with your financial institution?

The average consumer is spoiled with choice when it comes to banking services. They are “overbanked” in that they have access to more services and products than they need. A growing customer banking segment, whom we call the “überbanked”, actively spread their banking business across a wide range of institutions, fintech players, and alternative service providers – seeking out the best offer or deal.

Re-engaging this consumer, responding to their needs, and encouraging them to concentrate more of their profitable business with your financial institution should be high on your priority list in 2017.

Who is the überbanked consumer?

Überbanked consumers are greatly enabled by all the investments that banks and fintech providers are making in digital technologies, self-service channels, micro-services and APIs. They tend to be young, tech savvy and willing to shop around for the best deal when it comes to financial products.  

The überbanked consumer evaluates customer experience based on how effectively a financial institution is able to execute the transactions they desire; not based on their face-to-face relationship with a branch teller or financial services manager. They prefer the use of self-service channels, and place high value on convenience. This is why keeping the überbanked consumer loyal and responsive is a challenge for most banks – these highly profitable customers are not afraid to defect silently, taking major chunks of business with them.

Rethinking your banking services game: An organization-wide approach to consumer responsiveness

To win over the überbanked consumer will require most banks to rethink their service game. Customer interactions are no longer contained to any one channel… and it naturally follows that neither should a customer engagement strategy be. Although this might be stating the obvious, the organizational shift to omnichannel thinking remains one of the key hurdles for many banks to clear. Improving consumer responsiveness will involve formulating a task team made up of IT operations, security, channel management, and marketing stakeholders that all agree to position the customer centre stage.  These stakeholders need to take an active, shared interest in improving:

  • Self-service technology reliability and responsiveness
  • Product personalisation and customer segmentation
  • Alignment of value-added promotions and card offers
  • Accessibility of services
  • The cross-channel or omnichannel experience

Winning over the überbanked consumer, one transaction at a time

Many banks have already tapped into real-time transactional data at an IT operations level. If properly monitored and visualized, this data has been proven to help IT teams manage their end-to-end transaction environment, and isolate transaction failures and slowdowns related to applications, networks, host authorization and third party services on average 75% faster. But with the exploded growth of complex, cross-channel transactions, the days of the one-dimension operational view have become numbered. And so have the days of a silo’d approach to transaction management.

Becoming über-consumer responsive will require banks to simultaneously gather every customer transaction across all banking channels, and analyse them from not only an operational performance standpoint, but also a customer behaviour and fraud perspective. This analyses the same data as examined previously, but with an extended set of intelligent “lenses” that deliver relevant data to each of those stakeholders involved in positioning the customer centre stage. Some examples of questions answered with this data include:

  • Which of my transactions are failing or falling back? Why?
  • Which promotional offers are driving customer loyalty?
  • What card behaviours signal fraud?
  • Which campaign combinations accelerate revenues?  Who should we target?
  • Where should I place my next ATM?

Going back to the original question of how to convince customers to remain loyal, and concentrate more of their profitable business with your financial institution, it really boils down to your ability to move and groove with customers. Meeting the fast-changing needs of the customer is what consumer responsiveness is all about, and this will become more and more important as the überbanked consumer segment becomes the norm. In summary, re-engaging this consumer banking segment, responding to their needs, and winning more of their profitable business will require you to make the leap towards:

  • An omnichannel culture – establishing a team of people, across multiple departments, that are ready to position the customer center stage
  • A shared data strategy – making omnichannel transaction data available, on-demand, for any and all stakeholders
  • A real-time approach to analytics – creating “data lenses” designed to serve up relevant data, and answer the unique questions of each stakeholder around operational performance, customer behaviours, channel performance and security intelligence
  • A certain amount of predictive planning – identifying fraud trends, planning for high volume transaction times, and coming up with better promotional offers and product alignment based on past customer behaviour

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