The rapid growth of banking apps and Neobank’s is changing the conventional face of banking. Digitization and digital banking are becoming increasingly accessible to all levels of society.
Banks are embracing market segmentation, the practice of dividing your target market into approachable groups or verticals. With the growth of verticals and segments within banking, FinTech’s are the go-to for solutions that enable existing and new banks to provide tailored services to these diverse communities. Digital banking enables custom solutions to meet the requirements of all minority groups.
Traditional banks have collected an enormous amount of data on their customers. Many have not successfully mined this data or used it to their advantage. Many have been limited by their technology selection, only offering consumer banking, business banking, and wealth management. While their customer base is banked, many are underbanked.
The “One Size Fits All” adage, has played into the domain of the Neobank’s who are using this approach to their advantage by creating offerings tailored to personas (groups of customers with similar goals). These personas often include race, gender, age, marital status, beliefs, and many more.
With the advancement and development of AI and IT, inclusion, innovation, investment, and technology, banks are moving to implement technology to prevent churn and drive customer value. Banking inequality is dissipating, one application and Neobank at a time. Companies like Youtap provide the technology to drive inclusion and solve the age-old problem of banking the underbanked.
