As we mentioned in the previous blog in this series, three distinct consumer personas emerged within our research findings, each with specific characteristics linked to what they value most from their financial providers, what drives their loyalty and how they would like their providers to embrace digital innovation.

The key drivers of loyalty are cost; customer service (defined by high quality and responsiveness); trust (particularly as it relates to acting in the customers’ best interest and to protecting data) and the appetite or willingness to consider new digital models. The varying needs and priorities of these groups provide insight into how financial providers may need to reshape their proposition, both to secure the loyalty of existing customers and to reach out to new consumers.

The three personas are:

Nomads – Nomads are a highly digitally active group, ready for a new model of delivery and not tied to traditional financial services providers.  For example, 78 percent of Nomads will use a tech firm such as Google or Amazon for banking; 74 percent for insurance; and 60 percent for investment advisory services.  Nomads value digital innovation and embrace new ways of interacting with providers for accessing services and support, and they are comfortable with fully automated servicing. For instance, 85 percent are willing to use computer-generated advice for banking; 86 percent for insurance; and 87 percent for non-regulated investment advice.

Hunters — Hunters are searching for the best deal on price, but human advisors remain important to Hunters, as they don’t feel they can get everything they need without them.  They want to use traditional financial services providers; none of them will consider using Amazon or Google for banking; and only 12 percent will use a supermarket or retailer.

Quality Seekers – These consumers are looking for high quality, responsive service and data protection.   They want financial services providers who they can trust to protect their personal data; 53 percent say this keeps them loyal to banks, 40 percent for insurers and 39 percent for investment advisory firms.   And Quality Seekers demand a high quality and responsive customer experience.

Clearly, things are changing quickly for financial services firms.  In the next two blogs in this series, we will examine some potential strategic responses to help address this challenging environment.

Learn more:  See where the consumer personas are most prevalent by market.

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