Understanding Is The Currency Of Trust
The widespread effects of the global pandemic have created deep-rooted financial concerns for consumers. In turn, people in increasing numbers are turning to their banks for advice and solutions. There is a dynamic moment for banks to step up and help customers feel supported and secure, while nurturing new relationships and much needed trust. In an effort to identify these trends and opportunities, we’ve teamed up with leading research firms Decision Analysts, Resonate and MRI/Simmons.
Gazing in the rearview mirror, it’s clear the financial industry has a history of creating distrust with consumers. Prior to the mortgage crisis of 2008, customers believed their financial institutions were taking advantage of them. After the crisis, they knew it for sure. The process of repairing trust has been a long and winding road. One of the things undermining the fragile rebuild of this trust is a fear of data breaches. Over 70% of customers believe it’s only a matter of time before they encounter a personal breach of data security. As a result, banks have the opportunity to transparently communicate to customers exactly what they’re doing to make their data as safe as possible.
While consumer distrust and stress are real, the current landscape presents a chance for banks to help themselves —by helping consumers. As a result of COVID-19, over 60% of consumers are concerned about suffering personal economic loss. Current studies reveal consumers have a renewed interest in their own financial products and as many as 80% have a desire to take on new products and services. Recent information reveals as many as 85% of consumers are more likely to refinance their mortgage than before COVID-19, and 80% are exploring personal loans.
According to a recent Capgemini study, 70% of consumers feel financial institutions don’t understand their needs. Retail banks have a unique opportunity to really get to know their customers at the household level – uncovering not only what really matters most to them, but developing a relationship that centers around them too. Banks continue to communicate in the same tired ways, selling the same old products and services, in the same uninspired, unsegmented ways.
Today, customers expect you to look, think and act more like the Googles and Amazons of the world. By utilizing customer behavior data, banks may offer goods and services that match customers’ purchase behaviors with communications that are clever, insightful and sync from a channel and timing standpoint. Banks have the ability to present custom solutions and offerings at precisely the right time along a customer’s journey, when they’re looking for and need them most. When banks begin to prove they care about their customers as individuals, customers will begin to really care about what banks know, have to offer and how they can bring them value.
At Unbound we’re here to help banks not only begin to understand their customers in unprecedented ways, by navigating deep data-rich waters, but also how to get their attention.