Whoever holds the customer's data, wins
A few years ago, if consumers were multi-banked, the bank that received a customer’s salary and paid their utility bills was their primary bank.
That bank was relevant to the customer.
Nowadays, this isn’t true and traditional banks are increasingly at risk of losing relevance with the individual they think is their customer.
Around one in three UK consumers are now multi-banked, many with an increasing number of digital challengers who offer money management tools that aggregate data.
What does that mean?
If you’re not aggregating your customer’s financial products from other financial providers and helping them, then you’re not their primary bank.
You’ve lost relevance to them.
It doesn’t matter whether the other bank account receives their salary. It’s where the customer has merged their data and manages their finances. They're most relevant to them. In time, customers will transfer more value away from you.
Many banks are yet to realise that Open Banking (and Open Finance that will follow) isn’t about convenience and are at risk of passively slipping into obscurity.
It’s about owning the customer and their value.
What are you doing to keep your most valuable customers?