If the Moneyhawks Fly the Coop, $1.1 Trillion in Deposits are at Risk


In 2011, Javelin Strategy & Research identified a segment of consumers they dubbed the “Moneyhawks.” Since then, banks and credit unions of all sizes have been trying to attract and retain this unique breed of customer. They are wealthy, mobile-minded, tech-savvy, and unfortunately, they’re fickle! At present, 20% of them are at high risk of flying the coop and leaving their primary FI.

WHO ARE THE MONEYHAWKS?

While those in this flock make up only 13% of adults (31 million consumers), they control a massive nest egg of assets including 41% of all deposits and 33% of investable assets.

client loyalty and customer engagement are difficult with moneyhawks

Moneyhawks typically have a wide array of financial products such as car loans, mortgages, and credit cards, but those products may be managed by a variety of FIs.  Is it any wonder that financial institutions are brooding over how to attract and keep them under their wing?

WHAT DO THEY WANT?

Moneyhawks are vigilant – they keep an eagle eye on their investments. They have a big appetite for profitable banking products and services, and they want to do their banking on the fly – anytime, anywhere, and across all channels including online banking, mobile banking, branch banking, and ATMs. Moreover, with their cutting-edge digital expectations, these wise owls are shaping the future of banking in America. Their needs and behaviors will determine how Americans bank, borrow, pay, save, buy, and manage money for years to come.

HOW AND WHERE DO THE MONEYHAWKS BANK?

From a bird’s eye view, banks and CUs are targeting these hawks because of the potential for revenue, profitability, and wallet share. However, these birds of a feather also tend to be expensive to serve because they want to engage with their FI more frequently and through all channels. If FIs can appeal to their “mobile-first” mindset, they may be able to reduce the costs of doing business with the demanding Moneyhawks by providing a stellar mobile banking platform.

Javelin’s research shows that while 75% of these smart birds tend to rely on a “megabank” as their primary institution (Bank of America, Chase, Citibank), they may not have banked there for long. In fact, 37% switched within the past three years.

Here is a shocking statistic from Javelin’s findings – only 1 in 10 Moneyhawks uses a community bank (6%) or credit union (4%). And worse yet – over 57% of potential switchers said they were likely to take their banking business to one of the nation’s four megabanks.

WHAT CAN BANKS & CREDIT UNIONS DO TO WOO & KEEP THE MONEYHAWKS?

Court them by giving them what the megabanks lack.
Moneyhawks are not allegiant because they aren’t getting what they want from their primary FIs. They say they want better options and services for mobile and online banking, but here’s an interesting piece of data - 39% of Moneyhawks said they weren’t satisfied with their branch banking experience. And remember most of them are banking with the Big Four. While Moneyhawks may want cutting-edge mobile and online options, they also want better in person exchanges at your branch. If your FI has your ducks in a row – if you’re knowledgeable, flexible, and personable - you’ll have more success wining over the Moneyhawks (which means better client loyalty and customer engagement!)
Keep them with ongoing vigilance to service and innovation.
Don’t expect that keeping these birds will be easy. Because they’re finicky and critical, their feathers get ruffled often. But remember - research has shown that when an organization listens to a customer’s complaint, and then fixes the problem, the customer is more satisfied and loyal than if the problem never occurred. Be ready to work hard to keep their business with open communication in person and via digital channels. Continue to invest in innovative digital strategies, products and services. Solve their problems, and they’ll stick with you, and perhaps one day those discerning Moneyhawks will report that by banking with your FI, they are “as happy as larks.”

WHAT IS YOUR FINANCIAL INSTITUTION DOING TO APPEAL TO THE MONEYHAWKS? Or have you decided those birds have already flown the coop? We'd love to hear your opinion. Leave us a comment here, or...

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Posted on November 09, 2014 by AndrewB - No Comments

Topics: Financial Institutions, Loyalty