How has digitization affected consumer expectations for financial

services?

Banking is now closer than ever.Digital technologies have changed how we think of financial services by bringing our banks closer in space (accessibility) and in time (immediacy).

Long distances to services, long waits for transactions.

Mobile services, near-instantaneous transactions.

Financial security.

And this changes how we think about financial behavior.People think differently about events and objects depending on their ‘distance’ in time and space (psychological distance). As something comes closer (e.g. in the near future, or is physically closer to us), people go from thinking about broad, central, and abstract features to focusing on details, secondary features, and effort. As a result, a behavior such as saving money can be represented in a number of different ways.

Saving regularly for retirement.

Depositing 200 euros a month

into a 1.3% interest savings

account.

Far away in time

and space.

Close in time and

space.

Trope, Y., & Liberman, N. (2010). Construal-level theory of psychological distance. Psychological review, 117(2), 440.

This shift is evident across a range of domains.

Shift from broad to specific relationship mindset.

Accenture 2015 North America Consumer Digital Banking Survey

Focus on secondary features and services.

The New Digital Tipping Point, 2011, PWC

Priority on speed and effort.ING International Survey Mobile Banking July 2016

Using these insights to meet consumer expectations.

Firms should shift focus.Don’t speak in broad, central terms, talk details and secondary features.

WeChat Santander

Now more than ever, firms should emphasize simplicity and ease.Less ‘why’ and more ‘how’.

Wells Fargo Nutmeg

Thanks for reading!

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geert.desager@needlestrategy.com