Jeff For Banks

Three Ideas for Banks to Reverse the “Silvering” of Their Customer Base

Are your customers older than your markets? A common theme among students that expressed concern about it during our Executive Development Program (EDP) sessions in Seattle, Montana, and Salt Lake City.
Customers leave their banks for the 4-D’s: Death, Divorce, Displacement, or Dissatisfaction. Three of the four are life events outside of our control. And with switch rates that have persistantly hovered around 10% of total customers, how do we get ’em in, and keep ’em in?
Here are three ideas.
What other ideas do you have?
~ Jeff

3 thoughts on “Three Ideas for Banks to Reverse the “Silvering” of Their Customer Base”

  1. Glad to see you back on the blogging/Vlogging horse!

    Obviously we here at Hip Money concur with the fact that banks do indeed need to look to FinTech partners. This is especially relevant at a time when their traditional vendors have shown an inability to innovate at a pace that matches the market.

    Your first point about the parents is really interesting in light of a conversation we just hand two days ago when a parent wanted to buy Hip Money for their kid. They asked if they could "seed" the savings account so that when the kid hits $50 saved, it could trigger a match. We're looking into that option right now and should be able to expand there later this year.

    But…I'd challenge you on the "budget buddy" point as we've been told in no mixed words that most millennials don't want to budget. That was the biggest eye opener for us in the customer discovery and validation process. They want better outcomes but don't want to do the work of literacy or budgeting. So, if the motivation is there for the outcome but the process is too time and knowledge intensive, how can you deliver 60% of the reward with 10% of the work? That's our core value prop.

    Keep at it! But watch the road! z

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