Research & Thoughts

My Life. Your Data. Somebody Else’s Opportunity?

Q&A with Capco Partner Mark Record

Major shifts in customer attitudes and expectations will profoundly impact how banks perceive, organize and apply their customers’ data. Capco’s Mark Record believes the opportunities will be immense and that sweeping and profound change is inevitable. Find out more.

Mark, why, after such long discussion of the challenges, is customer data still failing to fulfill its role in growing customer satisfaction and retention?

Mark: Before we start to deal with the issue of data, we have to look at the definition of ‘customer’. There is no longer a ‘generic customer’ in financial services. We have a split profile which separates into five ‘generation types’. You have the pre-baby-boomers, the baby-boomers, and then what we call the generation x, generation y and generation z. Up to generation x, customers have been takers and receivers of information. They’ve been taught how to do banking and how to purchase goods by the institutions themselves. The generation y and z customers are different. They’re givers. They give information away very cheaply, pretty much with abandon. They worry about being part of a chosen community and being able to share information openly to be part of that community. Really, the generation y and z customers only think about data protection if their ID gets stolen.

So each set of customers has a different view of data protection?

Mark: Yes. There are growing numbers of generation y and generation z customers who have a different perspective on security and trust. They assume an acceptable, or even reassuring degree of data protection because they are operating in what they perceive as a safe community.

Is there a corresponding change in the institutions’ view of their customers?

Mark: There is technology out there that over the last three to five years has helped revolutionise how people can operate. So you can tag yourself on Facebook and everyone knows that you’re having lunch on Saturday and where you’re going. Or you can track someone on GPS on their iPhone. This should be revolutionising the way banks think about how they service the customer.

Is this increase in ‘customer intimacy’ going to change financial services models?

Mark: Make no mistake; this constitutes a revolution in the financial marketplace. It is perfectly feasible that a company will turn up in a year or so and move to a different way of operating, a way that will reflect generation y and z requirements. Also, we mustn’t forget that these customer groups will educate the other generations. This too will drive a significant move away from the traditional banking the large banks are used to providing.

Download the Q&A document to learn more.