Trust & Digital Capability Defines Today's Banking Customer Persona
💯 Jim Marous
Top 5 Retail Banking Influencer, Global Speaker, Podcast Host and Co-Publisher at The Financial Brand
A new model – referred to as "bring your own persona" (BYOP) is built around the dimensions of consumer trust, digital capability and overall relationship. Using this foundation will position financial institutions to win over consumers for lasting success.
By Jim Marous, Co-Publisher of The Financial Brand and Publisher of the Digital Banking Report
There is no questioning that the rapid rise in the use of the internet and mobile devices, and the accompanying expansion of social media and data analytics, has changed the way businesses operate. According to Mary Meeker, partner at Kleiner Perkins Caufield & Byers, who delivers an annual Internet Trends Report each year, there are now 2.8 billion Internet users globally, up 8% in 2014, and 2.1 billion smartphone users, up 23 percent in 2014.
In addition, Meeker noted the increasingly on-demand nature of the digital consumer. “Consumers increasingly expect that they can get what they want when they want it … this fundamentally changes the underpinnings of business,” Meeker said. These technologies and the way consumers interact digitally have the potential to impact the financial services industry more than any other.
According to the Federal Reserve Board report, Consumers and Mobile Financial Services 2015, 39% of adults with mobile phones and bank accounts reported using mobile banking – an increase from 33% a year earlier.
The most common use of mobile banking remains checking account balances or recent transactions. Transferring money between accounts is the second-most common mobile banking activity. More than half of mobile banking users received an alert from their financial institution through a text message, push notification, or e-mail – making this the third most common use of mobile banking.
Despite this increasing reliance on digital technologies, few banks or credit unions use digital channels such as social media or mobile to engage customers or drive business growth. According to a Deutsche Bank report, mobile-banking consumers on average “interact with their bank more frequently – up to three times more than consumers who bank online and 20 times more than those who bank via their branch.” The CEB TowerGroup 2015 Retail Banking Outlook Survey found that “improving service and customer experience in digital channels is an agreed upon priority for both the front and back office of the bank.”
Know Your Customer (KYC) No Longer Adequate
Most financial institutions are leveraging ‘Know Your Customer’ (KYC), traditionally a risk-management tactic and regulatory compliance obligation, as an approach that allows customers to elect their preferred channel of communication. A TSYS report published in association with FICO entitled Engaging Customers: Why Should Financial Institutions Move Toward a ‘Bring Your Own Persona’ Approach suggests this approach is no longer adequate.
More discussion of BYOP approach here ...
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7yJim Marous, well done here. "Know Your Customer (KYC) No Longer Adequate". I agree. I guess it depends on what you know about your customer and look a like future customer. I am a big fan of persona requires some understanding of personality of the CRM.