Quo vadis, financial sector? The Swiss Financial Brands Study
Do banks and insurers have a future in the digital world? The fact that the financial sector is facing turbulent times has become increasingly evident for some time: New competitors come and go. Small and agile FinTechs, but also large digital giants like Amazon or Google are entering the market.
What makes us different when everything is digitalized?
In a future where 90 % of all search requests are done via voice assistant, differentiation based on colors, shapes, and logos is no longer relevant. Only differentiating performance, emotional customer relationships, and a strong, lived brand can make the difference in the digital world.
A storm is brewing: It is time to act
- About 70 % of survey respondents think their bank or insurer is interchangeable.
- No added value is conveyed: Only 9 % of customers would be willing to pay more for the services they receive.
- Pain instead of gain: The biggest problem is the interchangeable customer experience at the brand touchpoints.
- Only 11.5 % find the financial sector attractive as an employer.
Sluggishness rather than brand excellence
Currently, financial services providers are benefitting more from their traditions and the sluggishness of customers than from superior customer experiences and uniqueness. Still, customers are confident that their banks and insurance brands will last: The trust and habit aspect of stable brands helps. Brands live longer than business models and can "buy" management some time to restructure those business models.
Brand management as an opportunity
Brand managers have to spring into action now: Rather than creating a "pseudo-image" with campaigns, the brand as a culture program has to create a unique customer experience from the inside by conveying differentiating values and living them.