Covid is driving everyone online, but customer engagement with banks is tanking
quantified customer engagement based on how often consumers use their bank’s: 1) debit card; 2) P2P payments capability; 3) savings and investments offerings; and 4) personal financial management tools.
The result was four consumer segments: 1) the Highly Engaged; 2) the Moderately Engaged; 3) the Barely Engaged; and 4) the Disengaged.Just 7% of consumers are highly engaged with their primary bank, and more than one in five consumers are completely disengaged from it.Why is this so important? Product ownership by engagement segment tells the story. More than four in 10 Highly Engaged consumers have six or more products with their bank. Among Disengaged consumers, that percentage is just 3%.
Not surprisingly, then, 28% of the megabanks’ customers have six or more products—four times the percentage of credit unions’ members with that many products, and nine times the percentage of community banks’ customers.The Reacquisition Imperative First: Stop deceiving themselves into thinking that just providing better digital account opening tools is going to fix the problem.How much longer can regional banks, community banks, and credit unions go on believing their checking account offering are competitive just because they’re “free” ?
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