The financial tribes banks need to know

The report surveyed 4,517 consumers and illustrates that the availability of online and digital banking services are important to an overwhelming majority (86%) of respondents globally. The latest in Mambu’s Disruption Diaries series has grouped modern banking customers into five different tribes based on their motivations, values and spending habits. These include Techcelarators, Ethical Bankers, Convenience Cravers, Covidpreneurs, and Neo Asset Hoarders.  

Purpose Driven Ethical Bankers

Europe and the UK are home to one of the largest tribes identified as Ethical Bankers. These are purpose-driven savers that want their money to make a positive impact on society and the environment. 

Globally, 68% of this tribe are open to paying for premium finance options but only if sustainable values are truly embedded across the business. 69% of UK respondents state they are more likely to choose a bank that adopts a sustainable ethos. To retain and attract this tribe as customers, financial institutions must offer services that help customers minimise their environmental impact and enable them to make a positive difference in the world with their money.

Another characteristic of this tribe is that their search for climate resolution makes them spontaneous buyers. To attract and retain Ethical Bankers, banks must ensure they’re offering an unrivalled combination of flexibility and tailored, green services to satisfy their requirements.  

Pre-pandemic saw some of the highest numbers of renters in the world. However, after facing troublesome times, 46% of consumers surveyed in Europe and the UK say they are now more likely to purchase their own home. The once spontaneous spenders who were happy renting now aspire to own property. This is what the pandemic really drove home - the need for a nest egg for the future. 74% of UK consumers resonate with this logic as their investment strategies are guided by ethical principles.

The Tech-Savvy Techcelerators

Techcelerators are those who are becoming increasingly tech-savvy. This tribe has learned to manage their money independently and manage their personal finances primarily using online banking services and view high street branches and ATMs as an added benefit rather than a necessity. 

In fact, the report shows that globally over half of the consumers surveyed use online banking to manage their finances. Resonating with accessibility and ease of use, these consumers are increasingly becoming familiar with contactless payments and online shopping. This tribe - predominantly middle-aged and older - blends the old and new ways of banking. They still value owned assets and long-standing relationships but have become accustomed to the flexibility and convenience offered by digital banking. 

The growth of online services amongst consumers doesn’t negate in-branch services, it means they want a fusion of both. Face to face interaction is crucial to Techcelerators as they predominantly value long-standing relationships. No matter how flexible and fast digital services may be, they still long for human connection. This is why we see customer service excellence as a priority for this tribe in everyday banking services.

Despite some banks providing better customer experiences and diverse online banking services, now is not the time to get complacent. To remain competitive and retain Techcelerators, banks must continue to capitalise on the latest technologies to provide new services and functionalities.

It’s not over for the veteran banking players

Understanding the tribes that consumers identify with will help banks and financial institutions strategically deploy new products tailored to their wants and needs. Across Europe and the UK, it is recommended that banks’ focuses are twofold. 

First, to battle consumers’ spontaneity and increasing digital demands, delivering products and services that are highly composable and able to quickly adapt and diversify through online best practices will be crucial. However, this is not exclusively limited to online platforms - striking an omnichannel balance would be best. 

Second, traditional banks must look to embed ethics and sustainability in all aspects of their brand and business to add real value to their offering for customers. Done lightly, or without true conviction, half-hearted or self-serving ethical measures will be transparent and more damaging to customer relationships. If traditional players can digitally transform fast enough they have a chance to be the number one choice for consumers in this space.

With fast-paced lifestyles slowly resurrecting and consumer confidence being shaken to its core post-COVID, consumers have snapped out of autopilot and realised the power is in their hands. 

To learn more about the priorities and behaviours of the five consumer tribes identified, and how banks should adapt their strategies to fit these evolving demands, read the complete report by Mambu.  

About Laurel Wolfe