Banks and credit unions are deep into strategic planning and budgeting season and fintech vendors’ phones are ringing off the hook as executive teams investigate the technologies they think they need to beat the competition. As a computer geek, and employee of a fintech company, I love the attention fintech gets at this time of year. However, I see one major issue with the way many financial institutions approach technology.
Not All Technology Is Right For Everyone
The typical approach to deciding the value of a technology is often whether other financial institutions are using it and in turn thinking your customers will use it, too. This leads to the planning of major technology purchases based on a false assumption-that what works for a competitor will work for you. In many cases you may still get good results from copying a competitor, but the better way to approach technology is to understand your customers’ and potential customers’ behavior rather than your competitors’ tactics.
Research Is Key
This is harder but not impossible. For example, Costco knows that the time to capture the bargain sunscreen buyer market is in March, not May. How? By studying the decision making process of their customers who buy sunscreen.
Do you do the same for your products and services? For example, do know what your target market for credit cards think about just before they decide they need a new credit card? Do you know what device or search terms they use to research a realtor, make and model of a car or a financial planner?
Follow The Customer Journey
Better yet, start at the very beginning of the consumer journey. Do you know what point of pain your target market is trying to address that eventually leads them to a competitor rather than you?
Do you know why a path a consumer took included a visit to you but did not end in a new loan or account? In many cases the technology is not the reason you lose out on new business, it is your process.
Think about it — you have an online loan application just like all your competitors, but how many questions are you asking before giving a decision? Are you giving a decision or expecting the customer to wait until the next business day to get a call from a loan officer? No amount of technology is going to save you from usability mistakes related to not understanding consumer needs and their behavior related to finding and getting a loan.
I firmly believe you should invest in technology, but be sure to invest in efforts to learn from consumer behavior how best to leverage technology to increase engagement and earn more business. Geezeo has been following consumer behavior changes and are experts in customer engagement.
Discover how Geezeo can help you with relevant technology solutions that will increase customer/member engagement. Call Steve Nigri, VP of Sales. 866.876.3654 x 1 or firstname.lastname@example.org.