The fast and slow of finance
By Teamspirit on Thursday, 16 February 2017
A new study has found that while banks are doing a good job of looking after the ‘fast money’ activities of their customers, like current accounts, transfers and payments, they are lagging behind when it comes to ‘slow money’ needs like pensions, life insurance and investments.
And this gap isn’t just a technological one. Consumers feel less confident about the ability of banks to understand and manage their long-term goals as well.
The study by ReD Associates, The Future Of Money, tracked 32 bank customers across the US, UK and Germany, alongside an online survey of 2,825 people.
It found several disparities between attitudes to fast and slow money. While seven out of ten people found their current accounts easy to manage, only two out of ten said the same for their pensions or investments. Similarly, eight out of ten people use apps and online tools for interacting with their fast money, but only three out of ten use them for their slow money.
Just as concerning – particularly for the financial services brands who are investing heavily in improving their slow services – the study found that the majority of people believe financial institutions don’t care about their customers over the long term. Only 25% of people thought their bank understood their financial goals and needs, while only 17% thought the same for pension providers, and 16% for insurers.
The report suggests a number of service-related steps brands can take to address these issues, such as improved data collection and categorising customers by life stage rather than just wealth.
But, in tandem with internal initiatives and technological developments, financial brands must make more effort to better communicate with customers.
By engaging with people at important points in their life and helping them understand that they truly do understand and are able to service their slow money needs, brands can build better, more productive, and more profitable, long-term relationships with customers.