This joint research report developed by Bain, MaritzCX and Salesforce provides fresh insights on how retail banks can overcome the risks Open Banking presents. Download Now.
Despite several innovations and one of the most active FinTech scenes in Europe, UK retail banking remains one of the most traditional industries
The new reforms introduced by Open Banking allow a better flow of customer information among financial institutions, FinTechs and other market players. Yet the key questions remain: will UK banking customers take advantage of the opportunities that Open Banking creates and switch? How do banks need to respond to the risk of losing high value customers?
This report answers these questions based on survey responses from over 4,000 UK banking customers. The results suggest we might be on the eve of a radical shift in customer behaviour.
Data indicates that a significant portion of UK banking customers are willing to share data with non-banking institutions in return for a better service, more personalised offers and better pricing. What is more important is that those customers are typically in the high value segment for the banks, putting up to 43% of the UK retail banking profit pool at risk.
Significant disruption is happening right now and banks might miss the opportunity to prepare for it if they keep looking at their business with traditional metrics. They will instead need to rethink their go-to-Market and technology strategy if they want to retain the most valuable part of the customer