The Path To Consumer Loyalty In Banking Is Digital

The Path To Consumer Loyalty In Banking Is Digital

Article from: The Financial Brand

Only by becoming digital institutions can banks and credit unions deliver the levels of service necessary to retain customer loyalty. Get it right, and those loyal customers will become brand evangelists, putting any financial institution on par with the biggest players.

Banking was once a local game where a Main Street presence dictated the share of deposits and loyalty was based on trust. Today, it is all about digital interaction, convenience and service. The better the digital experience, the bigger the share of deposits and the more loyal the customer base.

An article from McKinsey  says banks that excel at digital brand-building, advanced analytics and machine learning will protect and even grow their market. “In the coming years, digital presence will start to outweigh local scale, and therefore significant digital investment will continue to drive higher growth or ROE,” says McKinsey.

In addition, analysis from The Wall Street Journal reveals that by the end of 2017, the three largest U.S. banks held just under one third (32%) of the country’s deposits.

  

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