GoResponse Telephone Answering Service Staff

Challenger banks need to focus on under-18s

Credit cardsA new report shows that challenger banks are not focussed on growing their under-18 client base. These financial institutions, which are smaller than mainstream retail banks, need to capture this market share if they want to optimise their future success.

The latest report comes from Aspect Software, one of the industry’s leading customer engagement specialists. As part of the survey, 100 senior decision-makers from IT departments were questioned about growth. The respondents noted an average increase in customer base of 15 per cent during 2015. Companies with fewer than 500 employees saw 18 per cent gains compared to the 10 per cent noted by those with more than 1,000 members of staff.

However, there is still much for banking call centres and marketing departments to do. Only 28 per cent of respondents said they actively target the under-18 group. Customers in this age bracket could be opening their first bank account, and challenger banks could take advantage of this demand.

Aspect’s Finance Solutions Consultant Peter Littlewood said: “Given the propensity of customers to stay with their current account providers for years, if not decades (though the market may become more fluid with the recently-announced changes to the industry by the Competition & Markets Authority designed to make switching more straightforward), it would be a fair assumption that challenger banks would look to catch customers young as they are entering the system.” He added that this is not happening in the majority of cases.

For many telephone answering services, identifying potential consumer groups and actively targeting them is essential. As evidenced by challenger banks, missing out on an age group could be costly.

 

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