A new study reveals that consumers are a lot more bullish about online banking services than previously thought, and that banks need to rethink how they go about segmenting customers and defining their value propositions. Online banking could grow by as much as 50% during the next year, according to the study, Competing on Supply, Winning on Demand. Recapturing Share of Consumer Financial Services, conducted by Bank Administration Institute (BAI) and The Cambridge Group. Twenty-four percent …
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…companies competing for their business. However, by satisfying the needs of other customer segments who have a greater affinity for banks, are less demanding, and have fewer institutions vying for their attention, banking organizations can grow revenue from new sources. The study concludes that banks must focus more intensively on understanding the attitudes and motivations that drive customer behavior, said Navtej S. Nandra, principal at The Cambridge Group. "This approach allows you to predict behavior."