Retail Banking Trends to Watch in 2014
Looking back on retail banking successes in 2013, emerging ideas and solutions in 2014 build on the ability of retail banks to offer consumers the best products and services via the right delivery method. Pointing to advances in data, delivery and mobile applications, Brad Jones, retail banking vertical leader for Equifax, explains retail banking trends taking place this year.
A look back
It helps to look at an analysis of what worked and what didn’t in 2013 in order to pinpoint some of the trends that carry into 2014. Jones believes that the biggest 2013 trend was in household acquisition. “Many financial institutions launched new products/messaging and were supporting it with both mass media and targeted marketing campaigns,” he says. “We will see investment continue (and even expand) in 2014 related to household acquisition, including the return of cash and other incentives to open new relationships with the institution.”
In 2014, a greater emphasis is being placed not only on acquiring new accounts, but converting them into profitable households. By improving real-time engagement and sending offers based on customers’ preferences and habits, banks can continue to increase wallet share throughout the year.
Going mobile in 2014
“I think we’ll see significant enhancements to mobile as consumer demand escalates. Mobile enrollment/acquisition, payments and offers will all become more of a reality.”
Retail banking trends for 2014 clearly center around competition with banks offering multiple mobile services, from streamlining account applications to facilitating payments. Because consumers spend much of their time on their phones, mobile acquisition and offering online services must be prioritized. Whether it’s sending an offer via text or developing a mobile app for account management, consumers go where the process is most convenient.
Data plays a part
Modern consumers demand retail banks know more about them than just their account balance. By leveraging internal and external data to create a more complete customer profile, banks can utilize 2014 trends for better offers and account acquisition. “New customer insights will enable more sophistication in targeting and treatment strategies,” says Jones. “Customer preferences and behaviors can now be derived from internal and external big data to drive messaging, client experience and even strategies for growth.”
From delivering an offer via mobile services to expanding accounts based on income, spending habits and household wealth, advances in 2014 will bring retail banks to the forefront of consumer consciousness simply by being accessible.
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