UK financial services brands could attract billions of pounds in extra income by making better use of marketing data, technology and creativity, according to a new report, which shows over half of their customers would be willing to boost their spend more if only they felt more valued.
Missing Billions is a new report from Jacob Bailey Group, the creative business services agency, based on a survey of 1,200 UK consumers to better understand the concerns of financial services customers today.
And with the launch of “Open Banking” just six months away – it shows there are plenty of opportunities for both existing companies, as well as start-ups, to tap into consumer demand.
The fact that more than 50% of financial services institutions’ existing customers would be willing to spend more money on multiple products with the same provider throws up some eyewatering figures.
This would equate to £2.6bn spent on debit cards, £2.3bn on credit cards, £2.3bn on car insurance, £1.9bn on home insurance, £1.7bn on mortgage lenders, and finally £1.6bn on life insurance.
More than a third of people (37%) do not feel valued by their current bank; while one in ten (12%) do not feel valued at all by bank brands. Meanwhile nearly a third of people (31%) do not feel valued by their credit card provider; just over a third (35%) do not feel valued by their home insurance company; and 22% do not feel valued by their life insurance company.
Almost a fifth of people believe their financial services provider does not communicate with them enough. This figure is higher for people who earn between £45,000 to £55,000 (22%), as well as people with an income above that bracket (21%).
The study uncovered a number of issues around how financial services brands communicate with their customers, including lack of timely, relevant, personalised and helpful information, and general misunderstanding of financial circumstances.
The Missing Billions report also ranks financial services companies according to how valued their customers feel. Out of 20 brands examined, Bank of Ireland was the top performing company with the fewest customers feeling undervalued (22%), followed by Nationwide (31%). Out of the so-called “big four”, RBS (on 33%) came out on top.
Jacob Bailey Group strategy director Rob Manning said: “In an age dominated by digitisation, convenience and personalisation, the financial services sector has never been under so much pressure to evolve.
“We set out to understand why these brands are failing, losing out to savvier, more agile new market entrants, finding that how financial services brands communicate with their customers is potentially costing them billions every year.
“To unlock these missing billions, these brands need to connect relevance through microtargeting, based on the best use of data, technology and creativity, leading to brilliant customer experiences.”
