Changing the customer relationship
Challengers may not yet be profitable, but they have fundamentally changed the customer relationship – from communicating in a more open, regular, and transparent way, to offering convenient accounts accessible at the touch of a button and with quick, remote onboarding.
Traditional banks, meanwhile, have found themselves on the back foot when it comes to delivering the customer experience and usability of challenger banks, which offer flexible and versatile banking options that support and reflect consumers’ lifestyles and behavior.
Many of their legacy customers are expensive to service, preferring branches and checks. Some never want to move to a digital platform and contribute very little by way of profitability, yet banks must still fulfill their responsibilities to them while also dealing with staff trained to operate physical branches, as well as systems and key performance indicators aligned to servicing the status quo.