Only acknowledge the disruptors that pose a direct competitive threat
by: Pat Bator
Digital technology continues to have a profound impact on our collective consciousness as it satisfies our demand for instant results. Accordingly, a new type of consumer has been created – a digitally-based one – and the disruption of the banking business model is in full swing. Financial institutions must now be prepared to address and deal with non-bank disruptors that pose a direct threat to the industry’s market share.
Although Raddon’s National Consumer Research shows that consumers in general are satisfied with their current primary financial institution, there are some soft spots in member retention and loyalty measures for certain consumers. This is especially the case with younger consumers (under 35 years of age) who are smartphone users. Research shows these consumers have less of a propensity to remain customers of their primary financial institution and display much lower levels of loyalty to their primary financial institution of choice.continue reading »