Financial services’ lax CX approach leading to Missing Billions

Financial services providers in the United Kingdom are leaving billions on the table due to their laissez-faire treatment of customers, the new report Missing Billions suggests.

The report, developed by Jacob Bailey group, was based on a survey of 1,200 consumers earlier this year.

More than half of customers would be willing to spend more on products if their financial institution communicated better with them. That equates to £2.6 billion from debit cards, £2.3 billion from credit cards, £2.3 billion of car insurance, £1.9 billion of home insurance, £1.7 billion on mortgages, and £1.6 billion on life insurance.

That opportunity has been largely squandered because 37 per cent of people do not feel valued by their current institution, with one in eight not feeling valued by any brand out there. This feeling is not limited to banks and their brethren, as 31 per cent report not feeling valued by their credit card provider, 35 per cent feel ignored by their home insurance company, and 22 per cent feel shunned by their life insurance provider.

Many people feel their financial services provider keeps them in the dark, as 22 per cent of those making between £45,000-£55,000 and 21 per cent of those making more feel their current brand does not communicate with them enough.

Missing Billions also ranked 20 financial services companies according to how valued their customers report feeling. The Bank of Ireland ranked at the top with 22 per cent feeling undervalued, followed by Nationwide at 31 and RBS at 33.

“In an age dominated by digitisation, convenience and personalisation, the financial services sector has never been under so much pressure to evolve,” Jacob Bailey Group strategy director Rob Manning said. “We set out to understand why these brands are failing, losing out to savvier, more agile new market entrants, finding that how financial services brands communicate with their customers is potentially costing them billions every year.

To unlock these missing billions, these brands need to connect relevance through microtargeting, based on the best use of data, technology and creativity, leading to brilliant customer experiences.”