IN CASE YOU MISSED IT: Galileo Financial Technologies' '24 Consumer Banking Report sheds light on how FIs can drive better customer & member ROIs. It’s all about driving engagement. Here’s the scoop: The report focuses on where consumers primarily conduct their banking activities, recognizing that most people deal with multiple providers. DIGITAL BANKS WIN ACCOUNTS BUT TRAIL ON ENGAGEMENT As of April ‘24: • Top 20 traditional banks = 2.7B customers • Top 20 digital banks= 3.8B customers 🏆 Sure, digital banks acquired 41% more customers, but they’ve struggled to engage them. In fact, they’re at the bottom: % of respondents that report having their PFI relationship at various FI types: • Big 4: 38% • Super regional bank: 19% • CU: 14% • Community bank: 13% • Regional bank: 7% • Digital bank: 6% 👈 • Other: 3% USAGE BENCHMARKS Direct deposit continues to be a good signal for primacy, with well over 80% reporting they make direct deposits with their PFI. Regular use of digital banking, ATMs, credit monitoring services, & digital wallets (in that order) are also solid indicators of PFI status. How often respondents use different channels: • Mobile banking: 58% weekly | 72% at least monthly • Online banking: 44% weekly | 66% at least monthly • ATM: 25% weekly | 56% at least monthly • Visit a branch: 9% weekly | 33% at least monthly CUSTOMERS & MEMBERS ARE CHEATING ON THEIR FIs “People are curating a suite of financial services within & outside their primary FI, & the PFI probably doesn’t even know it.” This really stings: “Customers (& members) use other FIs for key services even when their PFI offers that same service.” 😳 WINNING REQUIRES TIMELY, HYPER-PERSONALIZATION “Banks & CUs that can’t recognize a customer’s or member’s immediate need miss a big opportunity to meet that need before a competitor does” In the good ol’ days, you could wait for someone to visit a branch to discover what they need. Not anymore. “60% of people said they prefer to do everything without human interaction. Being at the point of need requires data that can be used to create nimble, timely, hyper-personalized experiences.” ATTRITION CAN FEEL INVISIBLE “Customers might not leave your FI, but they might stop adding value and complete most of their financial activities elsewhere. FIs must offer their customers highly curated offers at the point of need & at exactly the right time. Only data-driven strategies will enable this.” 💡 See the full report: https://lnkd.in/g8C_fpjd Data gathered via Datos Insights #communitybanks #creditunions #digitalbanking #bankinginnovation
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🌟 Discover strategies to drive success! The Galileo Financial Technologies '24 Consumer Banking Report reveals key insights on how financial institutions can enhance customer & member ROIs through engagement.
IN CASE YOU MISSED IT: Galileo Financial Technologies' '24 Consumer Banking Report sheds light on how FIs can drive better customer & member ROIs. It’s all about driving engagement. Here’s the scoop: The report focuses on where consumers primarily conduct their banking activities, recognizing that most people deal with multiple providers. DIGITAL BANKS WIN ACCOUNTS BUT TRAIL ON ENGAGEMENT As of April ‘24: • Top 20 traditional banks = 2.7B customers • Top 20 digital banks= 3.8B customers 🏆 Sure, digital banks acquired 41% more customers, but they’ve struggled to engage them. In fact, they’re at the bottom: % of respondents that report having their PFI relationship at various FI types: • Big 4: 38% • Super regional bank: 19% • CU: 14% • Community bank: 13% • Regional bank: 7% • Digital bank: 6% 👈 • Other: 3% USAGE BENCHMARKS Direct deposit continues to be a good signal for primacy, with well over 80% reporting they make direct deposits with their PFI. Regular use of digital banking, ATMs, credit monitoring services, & digital wallets (in that order) are also solid indicators of PFI status. How often respondents use different channels: • Mobile banking: 58% weekly | 72% at least monthly • Online banking: 44% weekly | 66% at least monthly • ATM: 25% weekly | 56% at least monthly • Visit a branch: 9% weekly | 33% at least monthly CUSTOMERS & MEMBERS ARE CHEATING ON THEIR FIs “People are curating a suite of financial services within & outside their primary FI, & the PFI probably doesn’t even know it.” This really stings: “Customers (& members) use other FIs for key services even when their PFI offers that same service.” 😳 WINNING REQUIRES TIMELY, HYPER-PERSONALIZATION “Banks & CUs that can’t recognize a customer’s or member’s immediate need miss a big opportunity to meet that need before a competitor does” In the good ol’ days, you could wait for someone to visit a branch to discover what they need. Not anymore. “60% of people said they prefer to do everything without human interaction. Being at the point of need requires data that can be used to create nimble, timely, hyper-personalized experiences.” ATTRITION CAN FEEL INVISIBLE “Customers might not leave your FI, but they might stop adding value and complete most of their financial activities elsewhere. FIs must offer their customers highly curated offers at the point of need & at exactly the right time. Only data-driven strategies will enable this.” 💡 See the full report: https://lnkd.in/g8C_fpjd Data gathered via Datos Insights #communitybanks #creditunions #digitalbanking #bankinginnovation
Winning Market Share in an Era of Consumer-Curated Financial Services
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📊 The Future of Engagement in Banking In today’s competitive financial landscape, simply satisfying customers and members is no longer enough. To stay relevant, banks and credit unions must build deeper, data-driven relationships. Here’s why engagement is key and what that means for the future of banking: 🤔Satisfaction Isn’t Loyalty: 🏦 While 80% of consumers say they trust their primary bank, nearly half (45%) are using secondary providers for services like investment accounts or better interest rates. 🤖Digital-First Experiences: 📱 Nearly 60% of consumers prefer managing their finances without human interaction, with 72% logging in via mobile at least monthly. This shift calls for seamless, self-service digital solutions that feel intuitive and personal. 👩💻Data-Driven Personalization: 🔍 Personalizing services matters—91% of consumers are more likely to engage with brands that provide relevant offers. Yet, 37% still feel their bank’s offers aren’t tailored to their financial situation, showing a big gap to fill. 🔒Trust is Paramount: 🤝 Trust and security are essential to loyalty. Among consumers, 21% still hesitate to use digital banking fully due to data security concerns, highlighting the need for transparency and robust security features. Engagement isn’t a destination, it’s an ongoing process. While the first 30/60/90 days are critical, consumers are fickle so staying top of mind and delivering value throughout the duration of the relationship is required. https://lnkd.in/gd4ZP4QN
Winning Market Share in an Era of Consumer-Curated Financial Services
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Discover the latest trends shaping the future of community banks and credit unions in our new blog post, 'Banking Forward: Analytics Trends in Financial Services.' Gain insights that could transform your approach to analytics! https://hubs.la/Q02Ks0wp0
Banking Forward: Analytics Trends in Financial Services - Aunalytics
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A simple use case for Consumer Permissioned Data. Second chance underwriting, where a lender retrieves additional insights to potentially reverse the primary declination, is the most prevalent use case in the market today. Where a consumer may have limited or no credit history, this application of cashflow attributes and scores in a decisioning flow can help many consumers access financial services where they cannot be fully underwritten on credit data alone #openbanking #cashflowattributes
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The financial services industry is undergoing a fundamental shift, driven by Open Banking’s rapid rise in North America. This trend is amplified by the just released Dodd-Frank 1033 rule, which requires that financial institutions (FIs) provide consumers with greater access to their financial data. While compliance with this rule is non-negotiable, it opens the door for banks to capitalize on new growth opportunities. Read more from my colleagues Kimberly Kacal Bruce Schilder https://lnkd.in/efv8BRdZ
Open Banking and Dodd-Frank 1033: A springboard for competitive advantage | Accenture Banking Blog
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Both the banking and business landscape are being reshaped by next-generation behavioral expectations. In order to meet these expectations, it has never been more important for financial institutions to stand up competitive offerings—particularly for their commercial clients. https://bit.ly/3Wru2Pt
Traditional Banks Must Innovate Their B2B Solutions to Stay Competitive
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In a rapidly changing market, traditional banking isn't enough for SMBs. Banks must innovate with data-driven, proactive advice to retain and attract clients. Tailored insights on cash flow, growth, and financial health are key. Read our latest insight here: https://hubs.la/Q02DCdYN0 #SMB #BankingInnovation #DataDriven #Fintech
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Trust has been the cornerstone of banking. Yet, in today's digital age, how can banks build and maintain trust when physical interactions are declining? Discover how relationship managers can leverage technology to forge genuine connections and navigate the evolving financial landscape. #DigitalBanking https://lnkd.in/ggRQPpEn
The new wave: how relationship managers embrace technology to build trust in digital banking
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Banking's Data-Driven Makeover: Delivering Services in Addition to Products | Financial IT: ... bank or building society accounts from 2017 to 2022. Selling products alone isn't working, and now, when digital-first challenger banks are ...
Banking's Data-Driven Makeover: Delivering Services in Addition to Products
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Check out the 🤚🏻 Megatrends impacting Banking. Hint, DATA plays an important role in most of these. #ilovethefinancialbrand https://lnkd.in/ew2JHVnu
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Vice-President of Sales
2moThis is great stuff for any FI looking to improve their engagement with their account holders!! 🚀✔️