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Rand Keys Keys in on Key Findings for Banks

Financial services sector changes by 107%, growing concerns regarding privacy and data security

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  • Written by  Banking Exchange staff
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Rand Keys Keys in on Key Findings for Banks

Rand Keys released its customer loyalty engagement with some interesting findings for the financial sector. Among the survey was that there is growing distrust in Trading Products and services for personal spreads. Financial brands that did well in the area of trust include Discover, Schwab, Turbo Tax, the Hartford, Nationwide and Chase. 

Growing concerns regarding privacy and data security have reached a tipping point, driven by an astonishing increase in consumers’ expectations for trust and transparency in the brands they purchase, according to the 24ht annual Brand Keys Customer Loyalty Engagement Index (CLEI), conducted by the New York-based brand engagement and customer loyalty research consultancy (brandkeys.com).

Biggest Shift in Expectations for Trust. . .  Ever

“Trust – an engagement factor in every product/service category – has become the indispensable connective tissue between brands and customer loyalty,” said Robert Passikoff, president of Brand Keys. “Consumer expectations for that single value have increased across every category and brand we track, on average by 250+% since 2018. Consumer expectations increase each year – normally in the 2% to 25% range. This is an unprecedented spike.”

Where “Trust” Matters Most FOR Financial Services

In 2019, consumer expectations regarding Financial Services “trust” increased as follows:

1. Credit Cards 160%

2. Car Insurance 140%

3. Online Brokerages 120%

4. Online Payments 117%

5. Banks 99%

6. Tax Preparation 99%

7. Mutual Funds 96%

8. Home Insurance 88%

9. Life Insurance 85%

“From a tactical perspective,“ said Passikoff, “The major concerns in the Financial sector relates to ‘reliable fraud protection’ and the ability to actually reach a real person when it comes to problem resolution. Sounds like ‘trust’ to me.”

This year the Brand Keys CLEI examined 90 categories and 822 individual brands. Virtually all showed significant increases in consumer expectations for the value of “trust,” some brands and categories significantly more than others.

“Data breeches in the past year alone – along with failure to disclose – by brands like Macy’s, Saks, Adidas, Panera, Delta, Under Armour, and Orbitz, have significantly increased the gap between what consumers expect and what brands deliver. There’s a new brand ‘yardstick’ for every category,” said Passikoff. “Consumers may still shop, but they’re increasingly wary.”

“Trust” = Engagement = Loyalty = Brand Profitability

’Brand engagement’ is best defined by how well a brand meets consumers’ expectations for values that drive purchase behavior,” noted Passikoff. “Consumers have an Ideal image for every product and service; it’s how they measure brands. In recent years a more emotionally-based process has created a more value-infused, complicated path-to-purchase as it regards ‘trust.’ If marketers think they know consumers’ trust levels for their brands, this year they need to take another look preferably using methods more precise than traditional brand tracking.”

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