The Rise of the Überbanked Consumer: How can banks win these customers over?

In a webinar held earlier this week, INETCO, Fiserv and ATMmarketplace.com made reference to a new type of consumer that is challenging the banking industry. This new group is growing alarmingly fast, and has been greatly enabled by all the investments banks and other Fintech players have made in digital technologies, self-service, microservices and APIs. Who are they? They are known as the Überbanked Consumer.

Überbanked is a new terminology describing consumers that are “over banked”. It is linked to the phenomenon occurring within the banking industry, whereby the traditional value of a Bank (as a central trusted intermediary) is becoming eroded by the new models of technology-to-consumer exchanges.

The typical Überbanked Consumer holds multiple deposit accounts, is tech savvy, and willing to shop around for the best deal. They crave convenience, low costs, and great consumer experiences. They take advantage of new technologies and delivery channels to construct a portfolio of financial products and services sourced from multiple financial institutions, peers and alternative service delivery providers.

Many of the Überbanked consider their banking relationships to be merely transactional, resulting in less loyalty and waning dependency on any one retail bank. This means that with the rise of the Überbanked Consumer, many retail banks will need to rethink their service game. How do you increase your chances of providing relevant services to your customers, and stop them from defecting silently, taking major chunks of business with them?

The answer is a pretty simple one – by winning your customers, one transaction at a time.

The Überbanked Consumer evaluates financial service processes primarily based on how effectively they are able to execute the transactions they desire, not based on their relationship with a branch teller or financial services manager. If your customers care most about transactions, shouldn’t you, too?

If Überbanked Consumers care most about transactions, shouldn't you?

Transaction data holds a wealth of information that can impact operational performance, fraud detection and customer experience. If properly monitored and visualized, this data can provide real-time warning notifications of customer performance issues or anomalous activity across all your technologies and banking channels. It can also be used to analyze customer behavior and identify opportunities to further improve customer experience and profitability.

If you are experiencing the rise of the Überbanked Consumer within your financial organization, I would love to hear how this new profile of customer is impacting your business. If you are interested in learning more about how transaction data can be utilized by operations, business, fraud and risk management business units within your organization, you can also watch this on-demand webinar titled, “Five Awesome Ways to Improve Customer Engagement”.

2 Responses to “The Rise of the Überbanked Consumer: How can banks win these customers over?”

  1. Jose Santiago

    The only major reason why we have Uberbanked Consumer is simply because while the technology was advancing towards providing consumers with convenience, practicality, efficiency, etc basically providing the consumers what they have been asking for , banks and major financial institutions sat on their laurels (size, cash, regulation and the ability to manipulate the system) as they always have done and did not do anything to see or be prepared to what was coming. Not long ago in 2010 FinTech Innovation Lab in NYC asked major banks if FinTech would impact them negatively; their arrogant answer was, FinTech would not affect them because regulation, data protection, security, etc . Now they are running scared.
    If banks do what Fedor (Germany), BBVA (Spain) & Goldman Sachs (USA) did by opening up their platform and going towards the consumer desire for flexibility, service and convenience, then you would have less of Uberbanked.
    While banks have the same behaviour with the Unbanked (50% of the world population) Uberbanked is giving them a good run for their money.
    Welcome technology…
    Jose Santiago
    Chief Strategy Officer
    Okapi Finance International

    Reply
  2. Arshad Bhatti

    The uberbanked customer can only be win over when banks realize their ultimate need of convenience and work at grass root level to leverage their services for the daily needs to facilitate hassle free provision of payment services. It would entail cost effective solutions pointed to serve the customer rather than manipulating underneath desire to make money out of the customer ignorance or their forced dependency over the institutional muscle. Retail banking future would be measured by the customers loyalty and trust in provision pf their banking services for the sake of convenience by technology leverage at competitive pricing and not by the aura of banking brand and flashy buildings. Banks getting to the customer turf and then innovating for their convenience equally realized value by the clients would be the name of the game of future customer win over.

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