Retail banks have four sub-segments within their existing client base that they have largely unexplored, according to cloud-native savings and investment platform Nucoro.
As customers preferences change, Nucoro believes traditional banks is the first and most important financial relationship an individual has. While this is the case, there are still a number of client personas that have been largely unexplored by banks.
People have different financial situations and financial institutions need to identify the best ways of serving these clients.
The first type of customer is those that want help saving. These are people that use a large portion of their income on their lifestyle and have a small or no, safety cushion. Nucoro states these people do not engage with their financial future as it is overwhelming and do not differentiate between investments or savings.
These customers will also compare fees and prices but will trust the bank on their offering.
For these types of people, Nucoro sees the opportunity to help the save and offer them guidance to a more complex investment opportunity. The best proposition would be a goals-based saving and investing service.
The second type of customer is one that wishes the bank to invest for them. These customers understand the long-term importance of preparing for retirement and other goals, and have some knowledge in the investing world. They will compare prices but will not want high costs.
Nucoro claims banks should empower these investors with planning tools and partially or fully automated investment tools.
The third customer segment are those wishing for the ability to trade. Customers like this will want to invest into companies and brands they know and trust. They will invest small amounts and will want a low flat fee with an enjoyable experience.
Consumers like this will have experience in investing and will not need advice. To best serve these clients, banks should provide them with exciting trading tools to use.
Finally, the last customer type are those wanting support with their growth. These people will want to secure the family’s lifestyle and accumulate wealth for future generations. They will need help building new revenue streams and explore ways to grow their money. This means they will need an advisor that understands their values and goals, which will be best served through a digital wealth management platform.
Click here to read Nucoro’s full analysis.
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