Psychology of the consumer

When it comes to digital banking, all of the core suppliers and providers are keen to maximise consumer engagement across digital channels to ensure that their customer relationship proves more sticky than that of their competitors.

Paul Bartholomew-Keen is the managing consultant Europe at ZipZap Inc. Prior to joining ZipZap last December, he was the managing director of RBK Money – one of the leading payment platforms in Russia/CIS. Here he enabled international companies such as Bigpoint, Worldpay and InComm, to reach millions of consumers who prefer to pay with cash and alternative payment methods through local networks.

Bartholomew-Keen was previously the managing director of epay Ltd. Through his leadership, Paul delivered the strategic and operational transformation of the business and launched new products and services to over 150,000 sale locations throughout the UK

Bartholomew-Keen has also held a number of high profile positions within the banking and payments industry. During his career, he has been at the forefront of European prepaid product development and innovation at MasterCard, managed key elements of the current account portfolio at Lloyds TSB, headed customer management at Barclays for medium-sized businesses and led various strategic and development based roles at The Woolwich, Bank of Scotland and Barclaycard Merchant Services.

 

When it comes to digital banking, all of the core suppliers and providers are keen to maximise consumer engagement across digital channels to ensure that their customer relationship proves more sticky than that of their competitors.

That’s fine, but consumer engagement on digital platforms has to translate to revenue.

For example, does texting a customer to let them know that they are overdrawn, or sending them transaction confirmations, actually deliver value? It does tap into the softer issues of consumer relationship management but these types of engagements are very difficult to translate to the bottom line.

Providers need to think about the revenue generators that can be associated with other digital contacts.

Take the recent radio and web advertisements that PayPal have been running throughout December. They already make contact with their customer bases for core services but are letting them, and the wider public, know that you can log your card details safely with PayPal for online purchases. The revenue opportunity is geared around a simple message that PayPal will take away the hassles of you trying to buy something online at the check-out page.

This is the kind of simple psychology that needs to be replicated for banking consumers elsewhere if we are to see the returns on digital engagement.