Bots, Banks, and Brands - Putting consumers at the center of FS innovation
Big banks have developed a love/hate relationship with their own brands. On the one hand, their reputations – though battered by fraud, hacking, and more – may be helping big banks hold off an all-out assault from smaller, more nimble digital players. People who have money, especially those age 30 and above, still want to keep their funds in a place that they know and trust.
But, for banks, maintaining a brand relationship with consumers is like a ball and chain – expensive and time consuming. To sustain their solid and safe images, big banks need tons of back-office employees, costly advertising, and local branches that demand rent, staff, and more.
Recent GfK research shows that, despite the flourishing of digital money management services, and the potential for more FS offerings from major technology players (e.g., Google, Apple, and Amazon), only 6% of consumers say they are likely to move their primary banking account within the next 6 months. That number jumps to 9% among consumers 18 to 34 – a substantially higher percentage, but still small.