How (and why) consumers and banking providers don’t see eye to eye

Do banks and credit unions really understand the people they serve? How they prefer to bank? What's most important to them? How they really feel about some "innovations" like video tellers? And how consumers rate their providers' understanding of their financial needs?

Financial institutions have a good basic understanding of the consumers they serve, but significant weaknesses in their view are limiting their full comprehension of what consumers want. Most banking executives have a warped perception of people’s preferences — overestimating their desire for digital services, for example. And many financial institutions have an inflated idea of how “loved” they are by the people they serve.

The truth is, consumers feel their financial institutions don’t really know them at all. According to research from Celent, financial institutions don’t really understand the people they serve.

In a new report from Celent, analysts compared the perceptions of bank and credit union executives against actual consumer sentiment. The study found some big disconnects, revealing that many in the banking industry have an overly rosy assessment of how consumers really feel.

The study has multiple implications for financial marketers, including how well financial institutions understand consumer feelings about their providers, how consumers prefer to work with their providers, and what they want out of branches, which for many remain a key part of their banking relationship.

 

continue reading »