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How has digitization affected consumer expectations for financial services?

Needle Strategy
Needle Strategy

Digitization has brought financial services closer in both space and time through mobile access and instant transactions. This has changed consumer expectations, focusing them on specific details, secondary features, and ease of use rather than abstract concepts. To meet these new expectations, financial institutions should emphasize simplicity, speed, and concrete benefits rather than broad concepts, mirroring how consumers now think about money as psychologically closer due to digital technologies.

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How has digitization affected consumer expectations for financial services?
Banking is now closer than ever. Digital technologies have changed how we think of financial services by bringing our banks closer in space (accessibility) and in time (immediacy). Long distances to services, long waits for transactions. Mobile services, near- instantaneous transactions.
Financial security. And this changes how we think about financial behavior. People think differently about events and objects depending on their distance in time and space (psychological distance). As something comes closer (e.g. in the near future, or is physically closer to us), people go from thinking about broad, central, and abstract features to focusing on details, secondary features, and effort. As a result, a behavior such as saving money can be represented in a number of different ways. Saving regularly for retirement. Depositing 200 euros a month into a 1.3% interest savings account. Far away in time and space. Close in time and space. Trope, Y., & Liberman, N. (2010). Construal-level theory of psychological distance. Psychological review, 117(2), 440.
This shift is evident across a range of domains. Shift from broad to specific relationship mindset. Accenture 2015 North America Consumer Digital Banking Survey Focus on secondary features and services. The New Digital Tipping Point, 2011, PWC Priority on speed and effort. ING International Survey Mobile Banking July 2016
Using these insights to meet consumer expectations.
Firms should shift focus. Dont speak in broad, central terms, talk details and secondary features. WeChat Santander
Now more than ever, firms should emphasize simplicity and ease. Less why and more how. Wells Fargo Nutmeg
Thanks for reading! Please contact us: geert.desager@needlestrategy.com

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How has digitization affected consumer expectations for financial services?

  • 1. How has digitization affected consumer expectations for financial services?
  • 2. Banking is now closer than ever. Digital technologies have changed how we think of financial services by bringing our banks closer in space (accessibility) and in time (immediacy). Long distances to services, long waits for transactions. Mobile services, near- instantaneous transactions.
  • 3. Financial security. And this changes how we think about financial behavior. People think differently about events and objects depending on their distance in time and space (psychological distance). As something comes closer (e.g. in the near future, or is physically closer to us), people go from thinking about broad, central, and abstract features to focusing on details, secondary features, and effort. As a result, a behavior such as saving money can be represented in a number of different ways. Saving regularly for retirement. Depositing 200 euros a month into a 1.3% interest savings account. Far away in time and space. Close in time and space. Trope, Y., & Liberman, N. (2010). Construal-level theory of psychological distance. Psychological review, 117(2), 440.
  • 4. This shift is evident across a range of domains. Shift from broad to specific relationship mindset. Accenture 2015 North America Consumer Digital Banking Survey Focus on secondary features and services. The New Digital Tipping Point, 2011, PWC Priority on speed and effort. ING International Survey Mobile Banking July 2016
  • 5. Using these insights to meet consumer expectations.
  • 6. Firms should shift focus. Dont speak in broad, central terms, talk details and secondary features. WeChat Santander
  • 7. Now more than ever, firms should emphasize simplicity and ease. Less why and more how. Wells Fargo Nutmeg
  • 8. Thanks for reading! Please contact us: geert.desager@needlestrategy.com