As the number and clout of challenger banks and technology firms grow, traditional banks find their interactions and engagement with customers diminishing. Alternative payment methods, for instance, are catching on in many countries, Bain & Company’s new survey of 151,894 consumers in 29 countries finds. Yet banks have managed to hold their own in payments in a few countries, notably Sweden, Poland and Singapore. The common thread there: Banks can prosper if they join forces to create an industrywide platform that is highly functional and consumer-friendly. But if banks don’t figure out how to appeal to mobile-first customers, competitors will.
Maureen Burns is a partner in Bain & Company’s Financial Services practice.
With banks facing increased competition from tech firms, our latest Customer Loyalty in Retail Banking Report examines how the banks can focus on what customers value most.