29 July 2014

David Webber

David Webber - Intelligent Environments

17 | posts 40,007 | views 0 | comments

Intelligent savings, how can banks support young customers?

12 May 2014  |  1116 views  |  0

In his recent Budget, Chancellor George Osborne outlined measures to support savers at every stage of their lives. This is well timed, as according to the Lloyds Bank’s saving index, the appetite to save is generally increasing, with more than two thirds of people saying they now save regularly. However, according to our recent research this is not the case for young people, as almost half of 18 – 30 year olds in the UK, equivalent to 5.4 million young people do not have a savings account or ISA. However, over half of them have money left in their current account at the end of the month. So what can banks do to help their younger customers save more?

Firstly, the advent of predictive technology is providing a key opportunity for financial services providers. As systems such as Apple’s Siri and Microsoft’s Cortana become an increasingly important aspect of consumers’ lives, now is the time for banks to capitalise on these types of intelligent processing power to help their younger customers save. For example, providers can use analytics to automatically transfer surplus amounts into a savings account or ISA. They could even predict large impending payments and ensure the account holder is prepared for these. According to our recent research, 75% of banking customers would like to see such a system introduced.

In addition, adding personalised savings goals features to digital banking apps would also encourage customers to save more. Consumers are more likely to save if they can readily visualise the outcome. By personalising a savings aim and setting it over an achievable timescale, goals become more realistic. It is more compelling to save for the next ski trip or new kitchen as a separate goal rather than have it lumped into a single account.

It’s great that the Government has committed to helping savers. However, the next step is for providers themselves to ensure they are encouraging their customers, especially younger ones, to save. By implementing predictive services as well as personalised savings goals, banks can ensure they are giving their customers the support they need. 

 

TagsMobile & onlineInnovation

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Latest posts from David

Intelligent savings, how can banks support young customers?

12 May 2014  |  1116 views  |  0  |  Recommends 0 TagsMobile & onlineInnovation

A Glass Act: Google Glass and the Wearable Bank of 2014

14 April 2014  |  1485 views  |  0  |  Recommends 0 TagsMobile & onlineInnovation

25 years of digital financial services innovation

18 March 2014  |  2264 views  |  1  |  Recommends 0 TagsMobile & onlineInnovation

2014: A year of change for the digital banking industry

07 January 2014  |  2396 views  |  0  |  Recommends 0 TagsMobile & onlineInnovation

Changing the balance

03 December 2013  |  1129 views  |  0  |  Recommends 0 TagsMobile & onlinePayments
name

David Webber

job title

Managing Director

company name

Intelligent Environments

member since

2012

location

Kingston

Summary profile See full profile »
David joined Intelligent Environments in 2012, bringing over 15 years hands-on experience of the ...

David 's expertise

What David reads
David writes about

Who is commenting on David 's posts

Paul Love