Designing the Future of Banking: People First
The digital world has transformed the way people live, work, play, and even save. In a recent survey of millennials, 33% said they believe they won’t need a bank in the next five years.
People often perceive a lack of transparency from banks and financial institutions, which, they believe, use complicated and opaque language just to get more business from them. And while banks are vital to saving money, customers don’t often trust their advice or use their financial tools. As a result, banks face a competitive problem; a plethora of fin-tech startups are eager to fill the vacuum.
Mindset Segmentation: A Fjord Study
These dynamics prompted us to embark on an extensive research study into how people perceive banking services in light of their lifestyles, future plans and financial goals. Mindset Segmentation: Human Insights for Financial Services of the Future identifies four distinct mindsets– so strong we think they are universal. These mindsets hugely impact how we should conceive, design, build and market financial management services of the future.
We identified four Money Mindsets describing customer segments not by demographics but by how they approach spending and saving: the achievers, who define success by budgeting for clear, long-term goals; the explorers, a more gut-check decision-oriented group who define success by saving money and making trade-offs; the balancers, who define success by getting the best deal and sticking to their financial plan; and the experiencers, who enjoy spending money in the present.
Using Mindsets to Improve Business Performance
We believe banks that use mindsets as guiding principles can improve their relevance and financials by:
- focusing investments on valuable segments
- evolving from a traditional product-based portfolio to needs-based experiential services
- achieving surgical precision in Service Design – designing, building and managing different sets of tools relevant to each mindset, including rules of engagement and KPIs
- designing services of the future through existing mobile technologies and those we can’t even imagine yet
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