FICO Survey Reveals Fintech, Customer Loyalty, and Cross-Selling Surprises

FICO recently conducted an online survey of 1,012 consumers age 18 to 50-plus about their relationships with financial services organization.

“When we put this survey together, we had a specific story we had hypothesized that we would be able to tell about fintech, disruption and the arrival of Silicon Valley,” said Alex Johnson, Senior Marketing Manager, FICO, in a recent American Banker webinar.

But what Alex discovered is that the facts interfered with the story. The threat from non-traditional financial institutions isn’t nearly as grave as many in the financial services industry think it is. Only 2% of the survey respondents bank with a nontraditional financial institution. Furthermore, the ones most likely to consider a nontraditional provider are customers of a national bank, a bank chartered by the US government.

“But even those customers aren’t abandoning their bank,” he pointed out, noting that they’re simply exploring options, such as credit cards, that will complement the services that they’re getting from their existing financial institution.

Image Credit: FICO

“In general, we have consistently found that consumers are quite satisfied with their primary financial institution,” said Alex. “Even among younger consumers, there’s a great level of satisfaction. This goes against the grain of the fintech disruption story.”


Image Credit: FICO

In fact, according the survey results, most don’t want to leave their primary financial institution.

“Generally speaking, what we’ve found is the likelihood of customers, across institution types, to open new accounts has decreased,” he said. “This correlates with continued increases in customer satisfaction we’ve seen.”

However, those who are most likely to switch are national bank customers. And if you’ve lured customers away from a competitor, beware. “Customers who have switched primary financial provider are almost twice as likely to do so again,” warned Alex.

There is a brilliant silver lining, though: these customers are far more likely to open new accounts with their existing financial provider.


Image Credit: FICO

“This presents a somewhat unique challenge for national banks from the perspective of how they tune their customer service and cross-sell initiatives,” said Alex. He explained that if you’re thoughtful about your recommendations, and focus on what will genuinely strengthen clients’ financial wellness, you will significantly deepen their relationship with your institution.

“Conversely, if you attempt to engage with customers in a superficial way, with the intent to hit prescribed cross-sell ratios, particularly in channels where customers are not looking for these types of interactions, you’re going to see an exodus of customers,” he cautioned.

This makes CRM automation a more critical tool than ever before for national banking institutions.  It works with CRMs to provide everyone who interacts with clients the details they need to make sure any recommendations are highly relevant to their clients’ specific financial situations. It delivers the details to  build rapport, proactively mitigate issues, and effectively recommend solutions.

In essence,  CRM automation gives your team the intelligence to automatically provide the service and value the client wants most, and avoid the superficial recommendations that will turn them off. Best of all, this can be achieved without any data entry whatsoever. Find out how it works to take full advantage of the opportunities FICO has uncovered.

Related Posts

Leave a comment