On what money means:
Money is deeply personal and the most pervasive “product” ReD has ever encountered. There is “a persistent sense of anxiety caused by being overwhelmed by their finances,” ReD said in a written report on the study. Fixing people’s broken relationship with their money is the opportunity that ReD wants banks to seize.
On the fetishization of “fast money” by banks and fintechs:
You can now send your friends money, pay your bills, and complete international transfers on your phone in minutes. That’s useful, but these innovations have taken attention away from “slow money” products, such as pensions, mortgages, savings, investments, and insurance, which often require personalized advice. These are what reflect the money issues that keep people awake at night. Advances in the “slow” areas are lacking, suggesting that financial industry has lost sight of what really matters to people.
On focus:
Customers demand responsive, personalized services in every aspect of their lives, including from their banks. […] banks should focus on using the vast data they collect about clients to target services and advice at the moment they are most needed, such as buying a house, raising a child, a sudden change in income, marriage or divorce. Digital and mobile pension and insurance offerings should be available and tailored to individuals.
And success measuring:
Fundamentally, banks need to deliver services that make people financially better off, which means reconsidering how they measure success, says Mikkel Rasmussen. One way to do that is abandon Net Promoter Scores, a metric based on how likely a customer is to recommend your company to others. Given that banking services are so similar and people rarely switch, these metrics can be misleadingly high.