National Economy
Tuesday, July 1, 2025
  • Home
  • News
    • International Business
  • Lead-In
    • Cover
    • Investigation
  • Economy
    • Nigerian Economy
    • Fiscal Policy
    • Energy
    • Agri Business
    • Transportation
    • Industry
    • Competition
    • Homes & Property
    • Insurance
    • Companies & Markets
      • Companies
      • Capital Market
  • Tech
  • States & Politics
  • Commentary
    • Analyst
    • Business Matters
    • All Angles Considered
    • ClickSend
  • Editorial
  • Data
  • Others
    • Opinion
    • Money Guide
    • Analysis
    • Growth
    • Sport Economy
No Result
View All Result
Read News
National Economy
  • Home
  • News
    • International Business
  • Lead-In
    • Cover
    • Investigation
  • Economy
    • Nigerian Economy
    • Fiscal Policy
    • Energy
    • Agri Business
    • Transportation
    • Industry
    • Competition
    • Homes & Property
    • Insurance
    • Companies & Markets
      • Companies
      • Capital Market
  • Tech
  • States & Politics
  • Commentary
    • Analyst
    • Business Matters
    • All Angles Considered
    • ClickSend
  • Editorial
  • Data
  • Others
    • Opinion
    • Money Guide
    • Analysis
    • Growth
    • Sport Economy
No Result
View All Result
National Economy
No Result
View All Result
Home Lead-In

Why Younger Bank Customers Could Leave In Droves

by Rarzack Olaegbe
2 years ago
in Lead-In, Click Send
Reading Time: 3 mins read
Artificial Intelligence (AI) & Banking, The Future of Banking and Smart Financial Technologies for business.

Artificial Intelligence (AI) & Banking, The Future of Banking and Smart Financial Technologies for business.

Share on FacebookShare on TwitterShare on Telegram

A friend closed her account with one of the banks last week. She could not take it anymore. She had approached the bank to transfer her funds into one of her subsidiary’s accounts. At another branch. In the same bank. Close to her residence. However, she wanted the former account closed. The bank said no.

She approached the relationship manager. The manager apologised. Promised to activate the request. She did not. My friend returned to the bank two months later. She spoke with another manager. Another manager told her the cause of the delay. People problem. Above all, the branch would not want to lose the customer to another branch. The bank has lost a customer. She would tell her friends. Her friends would tell their friends. Do you get the drift? 

 

On The Other Hand

You May Like

‘Intra-African Trade To Hit $440bn By 2035 With Full AfCFTA’

FG, EU, UNICEF Launch N21.7bn Social Safety Net As Pension Assets Hit N23.65tn

More banks could lose customers. As shown by the recent research of www.pymnts.com, many of the banks could lose nearly 40% of Gen Z and millennials due to a lack of innovation. The research explained that potential customer loss could outweigh the cost of investing in payment methods that consumers demand.

It said payment options matter to account holders across generations. Although the younger demographics are most willing to switch their current financial institution over a lack of innovation.

PYMNTS’ May collaboration with PSCU, “Credit Union Innovation,” found that 29% of account holders overall would consider switching to a financial institution offering innovative payment products. The collaboration discovered that almost one-third of account holders could leave the friction-filled effort of transferring banks over the lack of payment methods. This may be alarming enough for institutions that have so far delayed offering these options.

Although a higher share of younger consumers agreed with the sentiment. 38% of bridge millennials, 39% of millennials, and 38% of Generation Z consumers said they would consider switching. If banks lose these lifetime customers now, or in the middle of their financial journeys, does it mean that banks that lack innovation could face higher long-term profitability issues if these consumers switch?

The research postulated that as difficult as it may be to maintain targeted customer retention rates in the current ultra-competitive environment, luring consumers back after they have already left might be near impossible.

From hindsight, it would be difficult to lure my friend back again. The bank in question did not tick any of the boxes. It failed to engage my friend: phone call, email, or short message system. The so-called relationship manager failed to manage my friend. All right. Let us assume it was a people problem. If that is not the function of a manager, what is it?

Aside from this, tech innovations – which many neo-banks and online payment firms have brought to the game especially when it comes to consumer-facing offerings – are becoming options for customers. This is because bank customers now demand increased connectivity and more money mobility options. The collaboration concluded that a large slice of younger consumers have made it clear that financial institutions that are not stepping up could be left behind.

 

On The Other Hand

A neo-bank with other branches would never let the customer go. It would speedily accede to the request. The neo-bank has nothing to lose. The fund is still domiciled in its till. There is a marriage between the parties. That the fund leaves a bank branch is immaterial. Well, what do I know? I am not a banker.

In the short term

Do not blame the relationship manager.

Who gets the blame?

Blame japa!

 

 

 

Tags: Bank Customers
ShareTweetShare
Previous Post

Nigeria’s Growing Population: Navigating Challenges And Opportunities

Next Post

Low Production Forces Dangote To Source Crude For Refinery Takeoff

ANOTHER GOOD READ

‘Intra-African Trade To Hit $440bn By 2035 With Full AfCFTA’
Lead-In

‘Intra-African Trade To Hit $440bn By 2035 With Full AfCFTA’

19 hours ago
FG, EU, UNICEF Launch N21.7bn Social Safety Net As Pension Assets Hit N23.65tn
Lead-In

FG, EU, UNICEF Launch N21.7bn Social Safety Net As Pension Assets Hit N23.65tn

19 hours ago
Insurance Industry Premium Income Rises To N1.5trn, As Policyholders Claim N622bn
Lead-In

Insurance Industry Premium Income Rises To N1.5trn, As Policyholders Claim N622bn

19 hours ago
Nigeria Tops Global Electricity Access Deficit For 3rd Straight Year
Lead-In

Nigeria Tops Global Electricity Access Deficit For 3rd Straight Year

19 hours ago
Nigerian Seafarers Decry Discrimination, Bullying On Board
Cover

Nigerian Seafarers Decry Discrimination, Bullying On Board

19 hours ago
CPS: PenCom, OHCSF Plan Gratuity Scheme For Civil Servants
Lead-In

CPS: PenCom, OHCSF Plan Gratuity Scheme For Civil Servants

1 week ago
Next Post
Low Production Forces Dangote To Source Crude For Refinery Takeoff

Low Production Forces Dangote To Source Crude For Refinery Takeoff

Most Recent

Senator Jibrin Barau @66: Footprints Of A Political Powerhouse And Philanthropist

Senator Jibrin Barau @66: Footprints Of A Political Powerhouse And Philanthropist

June 30, 2025
Obasa: Chronicling A Decade Of Commanding Legislative Tour De Force   

Obasa: Chronicling A Decade Of Commanding Legislative Tour De Force  

June 30, 2025
17 States Confirm Plans To Host Olympic Day

17 States Confirm Plans To Host Olympic Day

June 30, 2025
NSC Commends Akeredolu For Driving Nigeria’s Flag Football Success

NSC Commends Akeredolu For Driving Nigeria’s Flag Football Success

June 30, 2025
We Are Ready To Host CAA U18/U20 Championships – LOC

We Are Ready To Host CAA U18/U20 Championships – LOC

June 30, 2025
PFL  Event: Ukah Eyes Thrilling Debut Against South African Ceileigh

PFL Event: Ukah Eyes Thrilling Debut Against South African Ceileigh

June 30, 2025
Unlocking Africa’s Manufacturing Potential In Global Trade Networks

Unlocking Africa’s Manufacturing Potential In Global Trade Networks

June 30, 2025
Driving Aviation Growth Through Regional Collaboration

Driving Aviation Growth Through Regional Collaboration

June 30, 2025
Advertise with us

© 2024 | National Economy

No Result
View All Result
  • Home
  • News
    • International Business
  • Lead-In
    • Cover
    • Investigation
  • Economy
    • Nigerian Economy
    • Fiscal Policy
    • Energy
    • Agri Business
    • Transportation
    • Industry
    • Competition
    • Homes & Property
    • Insurance
    • Companies & Markets
      • Companies
      • Capital Market
  • Tech
  • States & Politics
  • Commentary
    • Analyst
    • Business Matters
    • All Angles Considered
    • ClickSend
  • Editorial
  • Data
  • Others
    • Opinion
    • Money Guide
    • Analysis
    • Growth
    • Sport Economy

© 2024 | National Economy