There is a huge opportunity to move past single-product pricing and engage in improved cross-selling and increased product penetration, according to a new report.
Banks should take cues from social media companies in targeting and engaging consumers, as 76 percent of Singapore customers said they are tired of generic credit offers they receive, analytics software firm Fico said in a report on new experiences in digital banking.
Across the region, when taking up new products, 34 percent said they were not offered any attractive incentives, while 31 percent said the bank failed to offer them a superior product to the one they applied for, and 28 percent said the bank failed to offer any additional products to their liking, the report said.
Pricing Innovation
Fico noted that many banks in Singapore do not have a comprehensive pricing strategy that aligns with their overall business strategy, but customers are willing for banks to make them offers that consider their total customer relationship, with 24 percent of respondents saying they are willing to offer more financial information for better interest rates or lower fees.
«Consumers are used to innovative pricing strategies from airlines, ride sharing services and insurance companies, yet banks are lagging behind,» Aashish Sharma, FICO senior director of decision management solutions in Asia Pacific, said.
The report also noted that customers want faster access to loaned funds: 56 percent of Singaporeans surveyed expected access to loaned funds in a week, 22 percent wanted access in a day and 18 percent within the hour.
