Rising demand for digital has made competition between incumbent and challenger banks more intense than ever. But who is winning the battle for consumers, and in what areas?
Temenos and the Economist Intelligence Unit have sought the answers in a groundbreaking new report “Customer experience: learning from online personal finance conversations”. This used machine learning to analyze over 10 million online conversations about personal finance.
Key findings include:
- Challenger banks are strongly associated with financial empowerment, but also twice as likely to be associated with security and privacy concerns when compared to traditional banks.
- Traditional banks retain strong associations with trustworthiness, a wider range of services and perks such as loyalty programs.
- ‘Financial services’ is a far bigger field than before. Open banking regulations are allowing third parties to build innovative financial products and assist customers in many more areas of their financial lives.
The report concludes that customer experience and engagement including personalization is top priority for challengers and incumbents alike. A deep understanding of customer behavior and industry trends is an essential step for any financial player, new or old.
The insights provided by this report complement the EIU and Temenos’ survey of over 300 leading banking executives on the future of their industry earlier this year.