If you've ever switched financial institutions, you know how much of a pain it can be. Most guides suggest that you should plan at least a full day to make all the necessary changes and leave both accounts open for at least two months to ensure that you catch everything that needs to be switched.
Most people don't make a full switch anymore. Instead, most people will open a second (or third, or fourth) account and gradually shift their usage over time. Even with that, research is predicting a big churn in financial institutions. Foresight research estimates that from 2021-2023, 22% of customers will be moving to a different primary financial institution.
What Are Potential Switchers Looking for in Your Financial Institution?
That depends on who you ask. With each generation, the answers may differ. According to a survey conducted by the ABA, bank customers under the age of 55 are most likely to switch to get better digital features, with 46% claiming they would make the changes. That same survey found that only 27% of that same demographic would change for better digital features.
However, fool.com states that the three key features people want when looking for a new bank are low fees, no minimum balance requirements, and a high mobile deposit limit. Classic table stakes.
So Why Are Big Banks an Easy Choice?
Those same tried-and-trained table stakes are also the reason that big banks are growing.
While customer service nightmare stories can be found for just about every big bank, their technology-friendly approach is also attractive. It's the same desire for ease of experience that drives customers to talk excitedly about Apple credit cards and Amazon checking accounts.
For proof, look no further than Capitol One. With 46% fewer branch offices than they had in 2015, and as one of the smallest of the "big banks," Capitol One focused on good digital delivery paired with strong storytelling. For the third consecutive year, they are ranked the highest-rated bank when it comes to customer satisfaction (694) according to a study by J.D. Power.
Build Your Capital
For banks and credit unions that don't boast Capitol One's marketing or software development budget, there's still a big opportunity for capturing more than your share of the consumers who might just be willing to move their PFI. The opportunity isn't in saying that you have low fees, easy checking accounts, great people, or a great app.
Instead, it lies in what can't be easily duplicated.
That’s your story. It’s easy to act like everyone else, but impossible for everyone to act like you. A prime example of this, is the Explorer’s Credit Union rebrand. Originally, they were Services Center Credit Union. Over time, however, that name started working against them. It wasn’t inspiring action, and it was getting lost in the sea of other, similar service centers.
After working with our team at Epicosity, we helped them find their story, and it was right in their hometown. Given their roots in Yankton, SD and being along the Lewis & Clark Lake – along with extensive research, the name ‘explorer’ was the most natural fit.
Quit trying to sell your potential customers on the things they assume you'll do ok and sell them on what you excel at: being you.
A true, confident story in place, will help drive how you promote your products and help you offer commodities beyond the table stakes.
Show Them You're Something More.
If you play the rate game and leave the human connection out of it, you get people who aren’t connected and only switch for rate reasons. Those aren't loyal customers – if they find a better rate in 6 months, they'll move.
How do you build a relationship with the existing customer base? It's through the emotional connections to the products and services you offer.
When you connect Epicosity, our team specializes in creating and maintaining lasting relationships between financial institutions and their clients. Seize your opportunity and reach out to Brand Ambassador Nikki Doherty today.