Transformation of consumer trends and marketing applications
The banking industry underwent a profound restructuring after the international financial crisis of 2008. As research indicates, the globalization of markets, regulatory measures and socio-economic changes have led banks to mobilize and evaluate different resources and capabilities. Now, we see a huge transformation of the banking industry owing to the coronavirus pandemic.
A shift in consumer sentiment and behavior during the coronavirus pandemic due to extraordinary conditions and safety regulations affected almost all industries. Consumer behavior in financial services has changed dramatically due to new priorities, concerns and preferences. Customers moved to digital channels faster than they did in the past. A BCG report indicates that online banking use increased by 23% and mobile banking use is up 30%.
Banks and other financial services companies are formulating new strategies based primarily on technology, AI, digital systems, mobile applications. The majority of them are related to contactless transactions and solutions with less human contact.
This article tackles the challenge of creating future competitive advantages by describing different strategies related to customer engagement in the financial service sector. Banks are operating in a highly competitive environment composed of fintechs, Bigtechs and financial services institutions. These newcomers are also providing innovative solutions and financial services owing to technology. This environment is also extremely difficult in terms of customer loyalty. It is not easy to create and maintain loyalty in customers.
One reason for this is that customers are more demanding and empowered to perform many of the activities that banks previously handled. Customers are knowledgeable and aware of many competing alternatives. This forces banks and all financial institutions to shift their perspective on financial service offerings. Emphasizing customer satisfaction and loyalty is important. Customers are no longer only passive perceivers and recipients of banks marketing activities. They are now real independent value creators, who use different service providers for banking and investments.
