How and why Fin-Tech Banks have connected with customers so far……….
Welcome to my very first personal blog as a Chief Operating Officer of Moneemint.
Firstly, I couldn’t be more proud to have joined such a talented and ambitious team of people, fully committed to building THE most ethical and inclusive bank in the UK.
Having personally made the leadership transition from one of the CMA9s (CMA9 being the 9 largest banks in the UK) to the fin-tech start-up world with Moneemint, you can guess I had so many questions about leadership that were swirling around in my mind. One of the main ones being:
How and why have Fin-tech banks (neobanks) so far established an emotional connection with their customers?
Although this is a complex subject influenced of course by personal choice, the following elements certainly played their part:
A lack of trust in traditional banks
Surveys show that around 14 years later, many customers in the UK say our traditional banks have not faced sanctions tough enough for their role in the 2008 financial crisis. third of adults in the UK still do not trust banks to work in the best interests of society.
The cost of service – Face to face in a digital world
We have all seen an increasing number of branch closures over the last 3 years in particular, which continue into 2022. UK commercial banks continue to struggle strategically with the essential need to change their traditional ways of working, while trying to please all customers. in how they want to be served. Once you have a recognized face-to-face operating rhythm as a huge organization, it is extremely difficult to deviate from it given the inevitable political and economic obligations, as well as the moral expectation of banks to stay in the UK main street.
Serving future generations: Gen Y, Gen Z and Gen Alpha (15 years)
If a business tries to live in the past, it tends to fail. Banks are no exception. Meeting the needs of the above and future generations is the job of current and future banking leaders and this is where neobanks steal a march and will continue to gain market share on the CMA9
Make it really effortless – I know we’re British, but who wants to wait in line?
Our lives are quite hard and busy. We are now also facing a cost of living crisis, soaring energy prices and £80 to refuel an average car. The demand to make things truly effortless and “on the go” doesn’t go away, which is only enhanced by “saving me travel and money” and, in turn, helping to improve well- being and work/life balance.
“I only left my cell phone at home” – What a nightmare… are you ok?
Need I say more. THE most powerful technology ever designed; we simply cannot live without! The key to why UK neobanks and indeed new digital platform players will continue to disrupt the UK banking scene for years to come and add enormous value to society and our UK economic growth.
So these are just some of the reasons why Fin-Tech banks attracted record investment of $11.6 billion in 2021 alone, nearly half of all investment in Europe!! But are they emotionally connected at the moment?
There remains much more than customers truly deserve. For fintechs to truly connect emotionally with customers in the future, they need to:
- Make things authentically personal for ALL customers, respecting and valuing their beliefs (Know Me)
- Connect emotionally deeper with customers (get me)
- Add trust value (Remember Me)
- Believe in their own purpose, vision and values… and live them, always!
- Be ethically and socially responsible
- Have a clear USP compared to other UK Fin-Techs and banks
- Learn from past banking mistakes
……Watch this place!
Chief Operating Officer, Monemint