The Evolution of Primacy: A Deep Dive with Fintech Takes

Eighty percent of consumers say they have a financial provider they consider as their primary financial provider, according to MX research. But, there’s no longer one definition for what determines primacy. Today, money movement and engagement were ranked as the top reasons why consumers consider a certain institution as their primary one. 

So what does primacy look like today? What do consumers really need from their banks? How can financial providers stand out and gain primacy? 

Alex Johnson from Fintech Takes recently took a deep dive into all things primacy, sponsored by MX. He said, “While many of the factors driving primacy make intuitive sense, there is no one silver bullet for establishing primary financial relationships, and such relationships are assured to change over time as consumers age into different life stages.”

Here are the top takeaways from Fintech Take’s Deep Dive into primacy, including steps providers can take to gain primacy:

The Hierarchy of Needs: Banking Edition

In the article, Alex suggests a hierarchy of banking needs for consumers including: 

• Safety: Is their money safe? 
• Convenience: Is the account easy to access and use? 
• Utility: Will this financial product or account help them meet their long-term goals? 

Safety and convenience are the bare minimum expectations that consumers have for their financial providers. There should be no question of if their money is safe or accessible. Alex points out that utility — or the ability to do more with money — is where providers can differentiate and win.

As it stands today, 31% of consumers agree they don’t feel financial providers do enough to support their financial needs according to MX research. MX also found that 55% of consumers would give their financial provider access to more of their data if they knew it would result in a better experience. The data backs up Alex’s point that consumers expect their provider to increase the functionality of their financial experience. Consumers want more from their providers and are willing to share their data to make sure that better experience happens.

3 Steps to Win Primacy in Today’s Landscape

Alex shares three tips for how financial institutions can stand out and gain primacy.

1. Tie Convenience and Utility Together

56% of consumers ranked ease of use as the top reason for selecting a fintech provider, according to the FTA State of Fintech Survey. Consumers like easy and accessible — especially when it comes to their finances.

MX found that 65% of consumers expect financial institutions to use the data they have about them to provide them with actionable and clear insights about their finances. Let’s break down this stat and its tie to convenience and utility. 

“Clear” shows the need for easy to understand financial data — or convenience. And, “actionable insights” can help consumers actually reach their financial goals — utility. MX works to bring these 2 together by offering dynamic and personalized insights that elevate the customer experience.

2. Become the Hub for Daily Operations

Too often, consumers look at their financial institutions as simply a place where they can store their money. There is no dynamic relationship between consumers and their providers. Financial providers should seek to become a trusted hub for operations as a partner on consumers’ financial journeys.

Ron Shelvin emphasized this point when he said, “The value that a checking account provides falls short of what consumers want and need.” The basic state of financial accounts don’t provide value beyond storing and showing money within a specified account. Financial institutions can take it a step further by providing consumers with real insights where they can move their money in a way that supports their financial goals.

3. Personalization Above All

MX found that 67% of consumers expect their financial provider to know them. So, how can they have the confidence that their providers do? Through personalization. Personalized products. Personalized services. Personalized marketing. Using data to understand and segment your customers will help you to meet unique customer needs. 

In a recent MX webinar, Jana Manley, Senior Vice President of Marketing & Digital Strategy at Suncoast Credit Union talked about the need to avoid “batch and blast marketing” and “start marketing to the need that members have” by giving personalized offers to consumers.

By personalizing customer experiences at every level, financial providers can meet customer expectations and win primacy.