How evolving digital expectations are creating new opportunities for banks
Digital services are becoming a key priority for consumers when evaluating their bank. With the current economic climate, there’s a growing need for banks to provide financial coaching to meet customer expectations and needs. This means banks now have the opportunity to expand their digital offering using enriched, personalised data insights.
Digital services are a key priority for consumers when evaluating their bank.
In today’s economic climate, consumers need help from their bank to get an accurate overview of their finances.
With Tink’s upcoming Data Enrichment product, banks gain access to enriched and personalised consumer spending insights enabling them to better support their customers.
Since the pandemic, consumers have become more digital-savvy and the daily use of mobile-first solutions has increased, leading many banks to develop their business structure. Adapting to customers’ growing need for digital services has resulted in better sales and company growth, but has also increased consumer expectations of those services. As consumers can now purchase items and services from all over the world with a few clicks, their buying behaviour is rapidly changing.
The rise of digital subscription services
Subscriptions are an excellent example of services amped up by the digital movement.
Who among us hasn’t signed up for a streaming service during the long, lonely hours of lockdown? Or enjoyed the convenience of having food regularly delivered directly from store to door. Numbers back up this digital subscription boom. Research done by Visa reveals that their payment volumes for subscriptions grew by 227% in the Netherlands between March 2020 and December 2021. Switzerland saw a growth of 78% during the same period, Germany 74%.
Data as a tool for financial coaching
While the convenience of subscription services contributes to simplifying consumers’ everyday life, it can also lead to them losing control over their finances. Subscriptions and other simple online payments quickly add up to a pile of expenses that can be hard to maintain an accurate overview of. And with today’s turbulent economic climate, people need help with managing their spending more than ever.
Here’s where banks have the opportunity to step in. Whether it's groceries, rent, or recurring payments to streaming platforms, banks are expected to guide their customers towards better financial health. With spending data, they can help consumers take control of their finances by providing them with insights on recurring transactions that may or may not be necessary, and give them the option to switch to a better service or cancel altogether.
How Tink’s products power customer engagement
To keep up with competition and meet consumer expectations on digital services, many banks will need to develop their business model. The fact that consumers are expecting more and more advanced and convenient digital services is making it harder for banks to retain customers. In the UK, 41% of those switching their accounts from one bank to another have done so in search of better mobile banking services.
To help banks meet these kinds of consumer needs, Tink has a personal finance management product on offer: Money Manager helps consumers understand their spending habits, set savings goals, and improve their financial health with personalised insights. But our new, soon-to-be-launched product Data Enrichment takes financial coaching one step further. It dives deeper into the transactions to further enrich and add more value to your financial data. By receiving processed and enriched data from Tink, banks can avoid lengthy in-house development and instead build engaging features and products within their banking app.
Beyond basic financial transactions
Through serving as an intelligent data processing layer, Data Enrichment enables you to innovate your banking app and meet your customers’ digital expectations. It helps you turn financial transactions into holistic sources of information about your customers, giving you a deeper understanding of their needs. By accessing transactional data from your customers’ bank accounts, you can then easily build value-added services on top of cleaned and enriched data.
These services and features will help your customers gain better insight into their finances and spending behaviour. Such as identifying recurring transactions and predicting upcoming costs like subscriptions – giving consumers a better overview of their spending.
Data Enrichment can help your users navigate today’s economic climate, while increasing digital engagement and improving customer experience and loyalty. You can easily integrate with third-party providers, enabling you to meet consumer needs beyond banking – like helping them identify and cancel unnecessary subscriptions.
Data Enrichment is scheduled for release in the upcoming months.
Powering a new world of finance
Tink’s technology provides the speed and flexibility to increase retention, improve efficiencies, and create engaging customer experiences. Want to power your banking app? Get in touch.
More in Product
2024-09-18
14 min read
Connecting the dots: how UX optimisations are driving success rates
We’ve previously explored small tweaks that get big results in open banking conversion rates. This deep dive drills further into how to reduce friction – and improve success rates through a fresh round of incremental changes in our UX.
Read more
2024-08-05
5 min read
Feature update: Savings Goals elevates your money management experience
Reaching financial goals can be daunting – so we’ve updated Savings Goals, a feature of Tink Money Manager designed to help banks empower customers to proactively save and achieve financial wellness.
Read more
2024-07-17
2 min read
Banking on engagement
This Tink white paper introduces new consumer and retail banking executive research from key European markets, setting the scene for banks to take the next step with Personal Finance Management (PFM).
Read more
Get started with Tink
Contact our team to learn more about what we can help you build – or create an account to get started right away.
