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The Analysis Comment
New products in the face of risk-aversion
New research shows that 71% of UK banks have acted on customer product requests over the past 12 months
Ion Fratiloiu Head of commercial, Yobota
A new independent survey of 251 senior decision-makers at UK banking and fi nancial services fi rms has revealed how they are responding to customers’ changing demands. The vast majority of the UK’s banks
and fi nancial services fi rms are launching new products to keep pace with customers’ evolving demands, but risk-aversion and the need for more investment could hold them back, the research found.
Results It found that 71% have developed a new product over the past 12 months as a direct result of suggestions put forward by their customers, with 80% saying they regularly seek feedback to assess how they can better meet the needs of their user base. More than three quarters (77%) have started
to tailor products and services to a new demographic of customers that they did not serve prior to 2021. Further, 80% of the companies surveyed
said they have experienced an increase in demand for personalised fi nancial products or services over the last year. Changing behaviours and expectations are
not perceived as a threat to business’ long-term prospects: the vast majority (83%) of banks and fi nance fi rms say they are confi dent in their ability to meet the evolving needs of their customers. However, the research unearthed support
for greater spending on innovation. Almost three quarters (73%) of senior decision- makers think their company should commit more money to exploring how they can expand their off ering. Almost two-thirds (63%) of respondents said
their business is risk-averse when it comes to introducing new products.
12
www.CCRMagazine.com
Changing behaviours and expectations are not perceived as a threat to business’
prospects: the vast majority (83%) of banks and fi nance fi rms say they are confi dent in their ability to meet the evolving needs of their customers
long-term Many have sought external support
though, with 72% saying they worked with a technology vendor to launch new off erings over the past 12 months.
Digital arms race The banking and fi nance industries are in a digital arms race, with companies competing aggressively for user retention. Customer trust is the holy grail, yet historically many have dragged their feet when it comes to delivering on big promises to put their customer fi rst. Positively, our research shows that the tide is turning, with many fi rms taking action.
Fulfi lling expectations There is no greater way to achieve customer satisfaction than by fulfi lling their expectations. Many companies are now heeding calls for personalisation, with many also rolling out new digital off erings that will serve unmet needs. Even the best products will not succeed
without a strong and engaged customer base, so it’s inspiring to see so many companies tak- ing the time to listen to and understand their customers.
Risk aversion Risk aversion evidently remains rife in this space, however, and this can stunt the development of value-adding products. Those ill-equipped when it comes to technological expertise would do well to partner with vendors who can do the heavy lifting. More generally, as fi rms move customers
out of branches and onto digital channels, investment in underlying technology infrastructure is essential to ensure when customers call for changes, they can be implemented at speed.. CCR
May 2022
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