In an increasingly competitive landscape, banks are rapidly designing value propositions and operating models to win primary customer relationships. But today’s banking environment is no longer one-size-fits-all. Curinos’ U.S. Shopper Study reveals that different types of banks are winning different types of customer segments.
National and direct banks skew toward more affluent customers, while fintechs, perhaps not surprisingly, punch way above their weight with those living paycheck to paycheck. Meanwhile, regionals and super-regionals hold their own with the mass market (see chart).
The takeaway? Every segment brings a different competitive set to the table. That’s why it’s critical for banks to choose their target segment(s) strategically and carefully. In the end, it will determine not only who they compete against, but also what capabilities they need to invest in to win.
Nationals continue to capture more quality primary customers, while fintechs over-index on the Paycheck-to-Paycheck segment.
Note(s): Paycheck-to-Paycheck: Less than 1 month liquidity; Mass Market: Under $100k HHI and not Paycheck-to-Paycheck; HENRY: Under 35 years old with $100k+ HHI and not Paycheck-to-Paycheck; Affluent: Over 35 years old with $100k+ HHI and not Paycheck-to-Paycheck
Source(s): Curinos Customer Knowledge | 2024 US Shopper Survey
