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WHO ARE BANKS’ CUSTOMERS IN THE DIGITAL AGE?

NOMADS are highly digital and primed for new banking models. They value self-service, and look for new ways to access products, advice and services.

HUNTERS are more loyal to traditional banking models. Yet, even they expect high-quality digital experiences.

QUALITY SEEKERS look for quality in both new and traditional services. They are open to automation and will adopt new tools if they enhance their experiences.

What these customers want, how they engage, and what they are willing to pay for are turning the concept of “traditional” banking on its head:

BRANCHES ARE LESS RELEVANT. Sixty-six percent of banking customers now execute half of their financial transactions online.

TRADITIONAL SERVICES ARE BEING DISINTERMEDIATED. Seventy-one percent of customers are willing to receive automated support.

CUSTOMER LOYALTY IS INCREASINGLY ELUSIVE. Fifteen percent of customers in mature markets (and 23 percent in emerging markets) switched banks in 2016.

VIRTUAL BANKS ARE STEALING CUSTOMERS. In 2016, more customers joined online-virtual banks (19 percent) than left (8 percent).

OTHER NONTRADITIONAL BANKING PLAYERS ARE WAITING TO POUNCE. Thirty-one percent of all customers (and 41 percent of Gen Zers) would consider purchasing banking services from an online provider, such as Google, Apple, Facebook or Amazon (GAFA).

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