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Incumbent banks ‘must leverage trust’ to secure loyalty

Peter Shackleton, VP of Commercial at Upgrade Pack

Reward programmes built on technology are an essential weapon if incumbent banks are to beat challengers and fintechs in customer attraction and retention, a leading loyalty expert has argued.
Peter Shackleton, VP of Commercial at Upgrade Pack, a specialist in digital loyalty solutions, said that urgent action is needed by traditional players with challenger banks signing up customers at an unparalleled pace.
“Revolut has achieved unicorn status with help from its nearly two million users, and Monzo with its hot coral cards and one million users dominates the headlines,” he said. “The challenger banks are winning because they put the customer at the heart of everything they do. It’s not as if legacy banks don’t know how important this is. In a PWC global survey 61% of bankers said a customer-centric business model was ‘vital’, but just 17% were ‘prepared for it’.”
He said incumbents must find new ways to leverage the considerable advantage they enjoy in the trust of their customers: “It’s so important for banks to utilise the data they have on their customers and reward them as an incentive to join or stay,” he claimed. “They need to use the information they have on their customers to delight and retain them. Banks need to use the wealth of data that they are trusted with on behalf of their customers, to give them something they truly want. They should be creating reward programs worthy of the name.”
Ultimately, he said, if banks want to attract they must truly innovate and to innovate they must maximise the benefits of technology: “Many have spoken about traditional banks being shackled by core platforms built on legacy systems, hence why the digital challengers are operating faster and moving at the speed of culture,” he added. “Banks need a reward system that does the same.”

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