The Financial Brand Insights - Fall 2021

” Neobanks, “big tech,” and fintechs such as Square , Chime and Paypal are helping erode the banking industry. With each new entrant or product, bank brands are being disintermediated from the consumer.

end of 2025, close to 40 million US adults will hold accounts at digital-only banks. ● Niche financial institutions are popping up at an alarming rate, offering community to groups of people aligned to a specific purpose or mission. Examples include Greenwood Bank , Majority , and Laurel Road . ● In 2023, more than $1 trillion will transact via mobile P2P apps. ● Google , Amazon and Wal-Mart are all closer to being banks than ever before. According to Segmint’s internal data, comparing year-over-year payment volumes from April 2020 to April 2021, Venmo grew 69%, the Cash App by Square grew 80%, and Apple Cash grew by 42%. At the same time, Zelle , a bank P2P app, grew just 5%; all transactions that could have instead originated from within a financial institution. The financial institutions that are having the most success competing…and winning…in the battle for wallet share are those that are creating timely and relevant experiences for customers and members. There’s been a greater emphasis placed on personalization over the last few years, but personalization alone is not enough. Just knowing the name of your customer and the products they have at your institution leaves you vulnerable to competitors with better technology that can harness data to create best-in-class and timely experiences. Relevance takes personalization to a whole new level by providing the insights around customer behaviors, mined from actual transactions, and recommendations based on the needs of the consumer at a particular moment in time. It’s time for banks and credit unions to take back banking . An FI’s Data is Rich Data Transaction data is one of the most valuable sources of information that an FI possesses, and used properly, it can drive most strategic business

decisions throughout the institution. This rich transaction data can be mined into a lightweight and nimble data set that can guide the institution to a deeper level of understanding behavior and spend patterns. Deep within this data is where the seeds of relevancy live. Leveraging this first-party transaction data significantly improves the ability to then deliver relationship-building customer experiences, while at the same time, nurturing loyalty through an emotional connection with the FI’s brand. According to The Financial Brand , 86% of U.S. banking consumers say they would be more comfortable with their financial institution having access to their personal data than a big tech company, such as Amazon , Apple or Google . These relevant interactions with account holders open the door for FI’s to focus on limiting churn, making strategic decisions around product innovation, gaining intelligence on the competition and knowing where money is leaving your institution. Knowing where money is leaving your institution puts you at an incredible advantage. An FI can use this knowledge to educate internally to develop strategies to steal share of wallet which in turn feeds opportunities for product engagement, financial wellness and account holder satisfaction. Staying relevant means staying top of mind .

Using Competitive Intelligence to Take BackBanking

It’s Time For Banks and Credit Unions To Take Back Banking Neobanks, “big tech,” and fintechs such as Square , Chime and Paypal are helping erode the banking industry. With each new entrant or product, bank brands are being disintermediated from the consumer. Here are just a few examples of the shifting dynamics in the banking industry that have the potential to leave banks and credit unions behind: ● Chime, now the number 1 neobank in the US, currently has 20.2M account holders, and is expected to grow to nearly 25M by 2022. By the

By Segmint

What happens when the industry you operate in is in transition and you no longer know exactly who you’re competing against? What happens when change is occurring so rapidly that new market entrants are encroaching on your territory faster than you can react? Worst of all…what happens if you can’t see it coming? If you’re in the banking industry, you’re likely aware that these forces are taking shape all around you. The real question is what are you doing about it?





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