"US banking model needs to adapt"
Findings from brand consultancy firm Clear’s Brand Desire Study 2012, which surveyed 6000 people, claim that US consumers would happily turn their backs on high street banks if it wasn’t for a perceived lack of alternative options (view press release). According the findings, only 22% of those surveyed respect banks such as Citi, Chase and Bank of America whilst just 16% said they would like to be using the same banks in the future. Of the 250 brands surveyed, these leading banks came in the bottom 15 across all categories, below Camel, Mobil and McDonalds. USAA bank was the only US financial services company to make it into the top 20 of all US brands.
With brands such as Google now making their way into the financial services space, banks will be under increasing pressure to regain public confidence. PayPal was the nation’s 23rd most desirable brand and innovative new players such as Movenbank, Dwolla and Simple are looking to revolutionise the way we bank over the near future.
Adam French, founder and president of Clear, says “the traditional US banking model needs to adapt if they hope to retain loyal customers. Consumers are looking for a more human bank, which, with the exception of USAA, is in short supply. If the new challengers demonstrate compassion, consideration and customer wellbeing, then the big brands will have to take another look at what they offer consumers beyond functional products.”
Whitepapers
Related reading
Central banks best suited to issue digital currencies
By Aaran Fronda A recent report by the Official Monetary and Financial Institutions Forum (OMFIF) said that central banks rather than private ... read more
Instant payments: innovations inbound for corporates
In 2020, instant payments look set to continue their current trajectory to become the biggest trend in payments. While these schemes already offer numerous benefits to corporates, leveraging innovations such as APIs and request to pay will go some way to unlocking their full potential, argues Michael Knetsch
Obstacles exist for banks to meet ECB’s instant payments goal
The cost of joining instant payment platforms will be one of many hurdles banks and payment services providers must overcome to meet ... read more
Banks must be aware of “biases” in data used to train ML models
Financial institutions need to be conscious of biases in the historical data that is being used to train machine learning (ML) models, ... read more
