DFA has released its latest report “The Quiet Revolution”, a study of household banking channel preferences, which is available free on request. The report examines preferences across customer segments, and across the sales and service value chains and also looks at how new online players may disrupt the status quo. From the introduction:
We conclude that the move towards digital channels continues apace, facilitated by new devices including smartphones and tablets, and the rise of “digital natives” – people who are naturally connected.
We outline the findings across each of our household segments, and also introduce our thought experiment, where we tested household’s attitudes to the various existing and emerging brands in the context of digital banking. We found a strong affinity between digital natives and the emerging electronic brands, and a relative swing away from the traditional terrestrial bank players.
These trends create both threat and opportunity. The threat is that traditional channels, especially the branch, become less relevant to digital natives, and becomes the ghetto of older, less connected, less profitable customers. The future lays in the digital channels, where the more profitable and digitally aware already live. Players need to migrate fast, or they will be overtaken by the next generation of digital brands who are looking towards becoming players in financial services. The game is on!”
Request the report [25 pages] using the form below. You should get confirmation your message was sent immediately and you will receive an email with the report attached after a short delay.