Customers have endless choices. Go to the grocery store or have a meal kit delivered? Take your car or use a ride-hailing service? Go to the movies or stream? This world of options is also affecting how customers manage their money.
Managing finances is necessary for every demographic, but it doesn’t mean that customers are one-size-fits-all – each have their own needs and goals. More and more, customers demand ease and simplicity as managing finances takes a great deal of effort and time. Financial institutions need to be agile and ready to adapt as customer behaviors change.
In the past, people would choose their financial institutions based on the convenience of the branch location or a family member’s relationship with one. Now we’re in a financial landscape where increased fragmentation is the norm. Consider that 63% of customers now consider fintech options for their financial services, and it shows, with the average household having up to five financial service provider relationships. They may use one institution for making deposits and paying expenses and another for financing a mortgage. So, what drives a customer to use multiple service providers for their financial needs?
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