NEWS


IBS Journal November 2017


15


Lack of targeted marketing for women loses banks £133bn a year


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inancial services firms miss out on £133 billion per year by failing to meet the needs and wants of women, according to research by Kantar. The lack of tailored communications for women is symptomatic of a wider problem in customer engagement in the sector, according to services firm Optimove.


The report claims that financial advertising and marketing strategies fail to communicate trustworthiness, dependability or understanding – 65% of women report little trust in their financial institutions, compared to 55% of men.


The survey claims that improvements could translate into huge revenue gains, since women manage borrowed money more responsibly and are more discouraged from using additional financial products.


“Financial services companies haven’t always had to worry about reaching out to individual customers, in particular due to the low switching rate between different providers,” comments Alon Tvina, managing director of EMEA at Optimove.


“Kantar’s study shows that gender is a big consideration in this, and there are many other differentiating aspects which financial providers can use to understand different types of customer. Account size, spending power and age are major factors that can affect communications. All customers are not the same, and financial institutions cannot take a one-size-fits-all approach to their relationships.


“The Open Banking initiative, with the Second Payment Services Directive coming in next year, will make it much clearer for customers to see which financial service companies are available to them, and make switching providers simpler. The aim is to make the financial services market more competitive, resembling the retail industry much more closely.


Women often have little trust in financial institutions


“But just because a customer hasn’t taken their business elsewhere does not mean banks are offering optimal value to them. To build stronger relationships with clients, banks and insurers will increasingly need to mould their services, and the way they communicate, creating a dialogue tailored to each individual.


“Our research has shown that targeting marketing at more individualised groups of customers, based on their preferences, can raise customer spending in retail by 50%, and these findings may soon become very relevant to banking and insurance too.


“Soon traditional banks and insurers will have to make the most of the data available to them to tailor marketing to their customers, communicating with them in an emotionally-intelligent way to make them feel encouraged and valued as individuals.”


NCR ties up deal with TSB U


K challenger TSB has signed a deal with NCR Corporation which will see the latter provide managed services for the bank’s ATM network.


The contract, according to NCR, includes ATM monitoring, incident management, help desk support and second line maintenance.


“TSB’s high-tech transformation is gathering pace. Our move to the new system will make us more responsive, agile and innovative, which will accelerate our mission to make banking better for all UK customers,” explained Mike Corran, TSB procurement and property director.


“As we prepare for the transition to this new banking platform, it’s important that we continue to deliver excellent service. With NCR as our partner, we are confident that we will be providing the best possible service to TSB partners and customers.”


Mark Vigoroso, vice president for product management and technology at NCR Services, added: “Big investment in our services team and capabilities are now paying off, with improved processes and real-time status information, as well as intelligence and learnings from servicing more than 2.5 million devices from over 300 vendors. This is the knowledge our services customers can tap into to provide value to their customers.”


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