In the age of the customer, financial institutions must constantly demonstrate their value — moving from being a repository of financial services toward becoming a part of the daily fabric of their customers’ lives. Relationship building and deeper engagement must then become the modus operandi of financial institutions if they wish to remain relevant and thrive. Those who don’t will watch competitors and fintech disruptors position themselves between their customers — pulling away the institution’s future spending and investment dollars.
Financial institutions must begin building relationships with the segment of their customers most vulnerable to being enticed by competitive forces — those customers who are not currently engaged. Understanding who they are, why they are unengaged, and how to re-engage them will focus financial institutions down a path of relationship building that they should take with all of their customers. Key findings include:
- The unengaged represent 16% of all financial institutions’ checking, savings, and credit card customers today.
- The unengaged don’t dislike their primary financial institution — they just don’t feel that they have a reason to engage more.
- Loyalty programs are the path toward greater relationship building.