Velocity MR, a leading market research and analysis company announced the results of their recent study on segmentation of banking customers basis their Technological knowledge and Financial acumen. The study with a total sample size of 4,440 respondents covered key Indian metropolises including Mumbai, Delhi, Bengaluru, Kolkata, Hyderabad, Chennai, Ahmedabad, and Pune.
The study covers multiple demographics like education, monthly household & personal income, occupation, age, gender, life stage, etc. In the study, SBI emerged as the most preferred bank overall; while respondents with higher monthly income declared HDFC and ICICI banks as their most preferred banks. Customer service was voted as the most influential factor in deciding their preferred banks, followed by the online banking features offered by the banks. Most of the respondents were observed to have a good understanding of the basic banking services available, like a savings account, usage of the debit card, internet banking services, phone banking services, etc. It was also observed that 6 out of 10 people use internet banking, while 1 in every 2 people uses Phone banking apps. The digital transaction was observed to be the most preferred banking route unless dealing with loan-related activities.
Jasal Shah, Managing Director & CEO of Velocity MR, shares “Every marketer realizes the importance of proper segmentation of the banking customers and its significance in optimizing benefits. However, for a long time now, category experts across industries have primarily been relying on basic demographic segmentation like age, income, and education. The advent of Fintech and rise of digitalization has called for a change in this practice, by segregating the consumers on basis of their level of digital sophistication and financial acumen.”
He further adds, “We have created four fluid classifications basis the financial and digital awareness observed; namely, The Rooted, The Digital Gurus, The Tuned In and The Financial Sapient. These classifications cover different age groups and highlight the overall strengths and weaknesses of every category of consumer.”
Highlights of the Study:
- SBI, HDFC, and ICICI Banks are the preferred banks across cities and age groups.
- ICICI is the preferred bank in Mumbai and is the primary bank in the high-income groups of 2.5 lac per month and above.
- While choosing a bank, Customer service has been given the highest importance, followed by online banking features. 6 in every 10 people use internet banking, while, 1 in every 2 respondents uses Phone banking apps.
- Delhi & Bangalore recorded the highest usage of Phone Banking apps.
- Customers’ requirement for a face to face interaction is low. It is dominant only for Loan related activities.
- Banking customers are getting accustomed to digital interaction; Not just for routine interactions like balance check, but also for banking activities like Fund Transfers and bill/tax payments.
Basis their financial and digital orientation, Velocity has classified the Banking customers in four fluid segments. Velocity calls them:
The Rooted – Has a traditional way of life which is reflected in banking. Their status quo has to be maintained.
The Financial Sapient – Have good financial knowledge but are digitally challenged. Their expertise must be harnessed bringing digital independence to them.
The Digital Gurus – They have the digital savviness but limited financial acumen. They are the complementary set of financial sapients. These two must be supported in harmony, to bring value to each other.
The Tuned in – They are they have it all. The niche that would bring out the best in the service provider and also if capitalized well, will bring long-lasting value to the bank.