Question

Part A: The experiential view: Accenture Financial Services 2017 Global Distribution & Marketing
Consumer Study

Consumer behaviors and expectations are shifting in ways that are forcing banks to both redefine their
priorities and transform their distribution models. To help map and describe these changes, Accenture’s
2017 Financial Services Global Distribution & Marketing Consumer Study gathered the views of more
than 32,000 banking customers across 18 markets. Three distinct consumer personas emerged within
their research findings. Nomads, Hunters and Quality Seekers. The personas are differentiated by their
attitudes toward competitive pricing and low cost, and the level of their interest in high-quality, responsive
service. Two important additional drivers of loyalty are trust (as measured by the bank’s ability to protect
personal data) and interest in an innovative digital model, reflected by the consumer’s willingness to
consider an online provider such as Amazon or Google for financial services. The varying needs and
priorities of these groups provide insight into how banks may need to reshape their proposition, both to
increase the loyalty of existing customers and to reach out to new consumers.

Answer the following questions:

a. In light of the experiential view , what are the
attributes and desired consumer experiences of the personas identified in the study? (4
marks)

b. What are the service implications for the financial institutions?

c. How can Financial Institutions use proactive measures to gain a competitive edge?

Answer 1

Answers:-

a) Attributes and desired consumer experiences of the personas identified in the study:-

Acoording to Accenture Financial Services 2017 Global Distribution & Marketing consumer behaviour study, Consumer behaviors and expectations are shifting in ways that are forcing banks to both redefine their priorities and transform their distribution models. according to the views gathered from more than 32,000 banking customers across 18 markets, consumers were grouped into Nomads, Hunters and Quality Seekers.

There’s a new reality that is reshaping the retail banking landscape. Enabled by a host of new and emerging technologies, consumers are changing their banking behaviours and this is affecting the technology that banks use to deliver their services.

the attributes and desired consumer experiences of the persons identified in the study are: their change in behaviour towards competitive pricing and low cost and the level of their interest in high-quality and responsive service. Banking customers today expect their financial institutions to offer personalised service and meet their evolving needs quickly and efficiently. Consumers want everything to be automated and computerised that they can get to see the details of their account and pay for anything at anytime from their fingertips.

b) Service implications for the financial institutions:

There are some consumer trends that banks simply must respond to in order to remain competitive. Internet banking and mobile banking are two examples that quickly come to mind. Given the importance of these channels to younger consumers in particular, banks have little choice but to find a way to offer them or risk losing customers. In many cases, the quickest and easiest route to market with new services, features and functionality is through a third party provider that can deliver a solution without requiring a major IT project on the bank’s side.

For banks, the structural integrity of a payments system patched with all sorts of third party features may hold for a year, or two, or five, but eventually it will need to be replaced in order to keep business rolling smoothly. It’s time now to take a total strategic approach to refreshing the front-end payments infrastructure and leap ahead of the competition.

c) How can Financial Institutions use proactive measures to gain a competitive edge:-

In many cases, the quickest and easiest route to market with new services, features and functionality is through a third party provider that can deliver a solution without requiring a major IT project on the bank’s side. The bank provides a data feed from its existing systems and the vendor builds out a solution around that data. An example of this tactic is one bank’s offering of a “check your balance” mobile application. The bank supplies the vendor with data that already exists within the infrastructure to interact with ATMs. Now a third party vendor incorporates this same data into a simple mobile app that allows the bank’s customers to check their account balance via their mobile phones.

A bank that is serious about wanting to grow its business needs an agile solution that enables products and services to be brought to market quickly. Whether it’s an entirely new channel such as mobile banking or an enhancement to an existing channel or service, the bank must have the ability to bring the offering to market in a reasonable time—preferably long before the bank’s competitors are able to deliver a similar offering.