Did you know that given the chance, if it suddenly offered financial services half of your customers would defect to Amazon tomorrow? According to Qubit’s latest consumer research, a company famous for big brown boxes, big discounting and big warehouses would take half of your customer base in a heartbeat.
Vitality: Largest disruptor on the block.
Vitality is on a mission to change health and life insurance for good - and they’re getting noticed for it. They are showing the industry that you don’t need to be a small start-up to be disruptive. They have flipped the traditional health insurance model from only interacting when a customer needs cover, to one where they interact daily, changing the focus from illness and risk, to health and wellness.
Between 2012 and 2013, Twitter’s fastest growing demographic was between ages 54 to 66, growing at 79% (Buffer, 2013). Women make up the highest percentage of gamers (IAB, 2014), while sub-Saharan Africa is now the world’s largest mobile technology market (Gallup, 2014).
These statistics fly in the face of conventional wisdom about consumer behavior.
Over two thirds of the UK adult population are active online banking users, and 30% are using mobile. So why is the Financial Services industry still in last place when it comes to delivering on customer experience expectations? The requirement for a new business model that reflects the modern consumers’ lifestyle has never been more evident.
90% of EU banks invest less that 0.5% on digital. Yet digital banking sees almost £1.5bn in transactions every day. If the airlines who, like the financial sector, faced similarly tough data risks and security issues, have been able to digitally personalize and optimize their customer experience, then financial institutions are truly behind. And the clock is ticking as newer players among lean pureplays outbid their traditional counterparts.
We now live in a Google, Facebook and Apple generation where consumers expect great experiences that are intuitive, social and instant. This change in expectation has put increasing pressures on businesses to delight customers. In these increasingly competitive times the importance of both acquiring and retaining new customers has never been so high.
The financial services industry continues to face negative public opinion, with its reputation increasingly damaged by numerous scandals - mis-selling, lack of transparency, and technology failures (think, for example, about the recent RBS/ Natwest mobile banking failure). In this blog we look at three challenges that the online financial services industry is facing today.