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BizReport : Ecommerce archives : August 11, 2017

Expert: Improve loyalty with money transfer

According to one expert, financial institutions and other money merchants can improve their customer loyalty by simplifying how money is transferred. Here's why.

by Kristina Knight

Kristina: You believe customer loyalty and money transfer are linked - how so?

Josh Gordon-Blake, VP of Global Partnerships, Pangea: Cross-border money transfers are very personal acts for bank customers. More than 50 percent of senders say their primary reason for immigration to the U.S. is to make money to support family back home. Receivers depend on those transferred funds to cover essential costs such as food and utilities. Plus, with privacy concerns at an all time high, customers are increasingly selective about sharing their personal data. If a financial institution can earn a customer's trust to handle their most intimate financial decision, then that FI has the opportunity to maintain them as a customer across other products and services.

Kristina: What do banks/financial institutions need to do to better serve this area?

Josh: Remittance senders are looking for a premium digital experience and a simple money transfer process. This can be accomplished by offering preferred payment and acceptance methods, rapid onboarding and "know your customer" (KYC), and clear and transparent pricing. It's also important for banks to remember the various challenges faced by customers who send funds to other countries, such as language barriers, financial illiteracy and minimal credit history.

Kristina: How can banks discover what value-added offerings are the most important to their customers?

Josh: A 2016 survey from Accenture confirmed what we already knew -- bank customers are focused on value. This can mean everything from deals and discounts to a convenient banking experience that leverages digital technology. Customers care about price, but will pay for an improved user experience that saves them time and inspires trust.

Kristina: How can banks/financial institutions best develop a strategy to connect with these customers?

Josh: The rapidly changing technology landscape leaves banks with two choices to use remittances to differentiate and increase retention -- build an industry leading technology offering or partner with a technology provider. Either approach would provide the bank with a fresh pipeline to a new customer base and increase retention by allowing customers to access the best remittance experience without leaving the bank's ecosystem.

Tags: advertising, ecommerce, loyalty building trends, loyalty marketing, Pangea

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