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There
are large customer segments that have no relationship
with any kind of FSP, and for various reasons FSPs
have historically chosen to overlook customers who
do not actively seek out or establish checking accounts,
savings accounts or insurance policies. While there
is a tremendous opportunity in meeting these customers
needs, the challenge for the FSP is in identifying
the types of products and services that can profitably
be provided to these segments.
In
the same light, virtually all FSPs have current customers
for whom they don’t have complete “wallet
share”. For these underserved customers, FSPs
can develop strategies for understanding why they
have relationships with other providers and garner
additional share through focused interactions.
Unserved
and Underserved Segments
There is tremendous opportunity in serving the financial
services needs of certain minorities in the United
States and abroad. In the United States, for example,
the Hispanic, African American and Asian segments
of the population are growing, and will have incredible
economic influence (source: Georgia Business and Economic
Conditions, from the University of Georgia, 2Q02):
> |
Between
2002 and 2007, the U.S. Hispanic population will
grow by nearly 30 percent and total Hispanic buying
power will grow by nearly 60 percent; however,
currently less than one in every three Hispanics
has an FSP relationship. |
> |
Between
2002 and 2007, Asians in America will have a 53
percent increase in buying power and 56 percent
of all minority business revenue will come from
Asian-Americans. |
Still,
these two groups represent the largest “un-banked”
and unserved segments, and they make the most use
of nontraditional financial services, like wire transfers.
Additionally,
most customers with a financial services relationship
have relationships with multiple providers, thus reducing
the wallet share of any one provider. In fact, most
use the services of at least four providers. Unfortunately,
most nontargeted attempts at increasing wallet share
fail miserably.
FSPs need next-generation tools and strategies to
reach these current and potential customers.
Learn
more about midtier financial services trends and strategies.
Click
here to qualify to attend Midsize Enterprise Summit
as our guest in 2004.
Reference
Breakout Session, Midsize Enterprise Summit
Reaching Customers: Next-Generation Strategies
and Technologies for Financial Services
Presented:
September 11, 2003
Presented by: Bradford Adrian, Senior Analyst, Gartner
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