Three quarters of global consumers are now more likely to use digital banking than before the pandemic, according to a report from SaaS cloud banking platform Mambu. The report has also revealed five consumer segments which are driving growth in financial services.
‘The Financial Tribes You Need to Know’ report reveals that nearly two thirds (61%) of consumers globally have made greater use of digital banking services over the last 18 months and two in five (41%) have started using digital banking services for the very first time because of the pandemic.
In the survey of 4,500 consumers, five emerging so-called ‘financial tribes’ were identified. According to Eugene Danilkis, CEO at Mambu, each group indicates something significant about the way consumer behaviour is adapting and what banks must do to stay ahead of the curve.
Recent converts to the world of digital banking amid physical branch closers, the ‘Techcelerators’ accounted for a third of total respondents, with 35% of UK consumers falling into this category. More than half in this group are aged over 35.
The second largest group globally, the ‘ethical bankers’, made up 31% of respondents. This segment, according to Mambu, are most likely to pay a premium for financial services that help the environment or local communities.
Making up nearly a quarter of respondents, was what Mambu called the ‘convenience cravers’, those who value all-in-one services at their fingertips and at no extra cost. This group comprises predominantly middle-aged or older individuals.
The youngest ‘tribe’ globally, who set up their own businesses during the pandemic, Mambu labelled the ‘covidpreneurs’. These consumers are most likely to favour business services in a bank and are also most likely to invest in traditional assets.
Finally, the smallest group, but growing rapidly according to Mambu, are the neo asset ‘hoarders’. These are neo asset owners who want to use financial services to buy, trade and hold assets. Two thirds of this group are male and over half are under the age of 35, and most likely to agree that the ability to buy, sell or manage neo assets is important in a bank.
“If banks want to thrive in the future, they must think about how to affiliate themselves with the dynamically changing groups within society and appeal to them with products and experiences that meet their shared values and financial needs. Globally, we have over 50 million end users on our Mambu platform which demonstrates the growing demand for new and digitally-enabled financial products.”
Danilkis concluded, “If banks want to thrive in the future, they must think about how to affiliate themselves with the dynamically changing groups within society and appeal to them with products and experiences that meet their shared values and financial needs. Globally, we have over 50 million end users on our Mambu platform which demonstrates the growing demand for new and digitally-enabled financial products.”
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