KQ Article

As regulations reshape our industry, the Deluxe Collaborative wants to discover how banks and credit unions can thrive instead of merely survive. Before choosing new strategies, however, we need to know what customers and members expect. That’s why the Collaborative conducted two“framing sessions” to identify customer opinions about the banking industry in general.

Here is what we learned from eight hours of candid feedback:
 
1. Consumers fall into two groups. The first sees banksand credit unions purely asservice providers — a place for transactions. The second group sees us as potentialpartners — a partner of value. To thrive, banks and credit unions must know what kind of consumer they are facing and serve them appropriately and profitably. By showing how we can help them achieve goals and improve their financial well-being, some consumers will be willing to move from the less-profitable transactional group to the more valued second group.

2. Consumers are the boss. Customers and members do not believe they need much financial education, so new communications must strike the right tone. Although they are not excited about changing banking habits, consumers do appreciate choices — which will be key to motivating them. Ego also comes into play. People want to be rewarded for their loyalty.

3. "Free" is normal. Customers don’t want to pay for services they now enjoy for free. This is what the banking industry conditioned them to expect, and reconditioning them will take a concerted effort to redefine the value banks and credit unions offer.

4. People know what they like. They want simple, clear communications without jargon. They like to be notified of changes multiple ways, depending on the urgency of the message. They value technology, especially for viewing balances and seeing when transactions clear.

Get ready for the shift
What do these new consumer attitudes mean for us? Here are the big takeaways:

• Let unprofitable customers and members leave, even in smaller communities.
• Empower customers who stay, making them co-creators of new products, services, pricing models and communication tools.regulation.
• To thrive, our industry must take a new look at the value proposition it is offering to the market, and start doing more than simply holding people’s money. This will require an evolutionary journey, not a single marketing campaign or new product.

To leverage valuable insights and learn more about ourresearch, plan to attend the 2011 Deluxe Knowledge Expo this fall. Register now!

_{© 2012 Deluxe Enterprise Operations, Inc.}