Three quarters (75%) of global consumers are now more likely to use digital banking in the next few months than before the pandemic, according to a new report from SaaS cloud banking platform Mambu. The Financial Tribes You Need To Know report reveals that nearly two thirds (61%) of consumers globally have made greater use of digital banking services over the last 18 months and two in five (41%) have started using digital banking services for the very first time because of the pandemic.
Eugene Danilkis, CEO at Mambu, said: “Each tribe tells us something significant about the way consumer behaviour is adapting and what banks must do to stay ahead of the curve. Traditional audience segmentation in financial services is broken. The one-size-fits-all model, in which customers are divided based on how much they earn, or simple demographics, is redundant in a world of open finance.
“If banks want to survive, they must think about how to affiliate themselves with the new groups within society and appeal to them with products and experiences that meet their shared values and user needs. Globally we have over 50 million end users on our Mambu platform which demonstrates the growing demand for new and digitally-enabled financial products.”
The Financial Tribes You Need to Know report surveyed 4,500 consumers globally, including in the UAE. It reveals 4 in 10 consumers tried online banking for the first time during the last 18 months and identifies five key consumer groups, or ‘tribes’, that are driving the future of financial services. These include:
- Techcelerators: Recent converts to the world of digital banking who have adopted digital services amid physical branch closures. This group is the largest tribe globally, accounting for a third (33%) of total respondents. More than half (57%) are aged over 35 and this group is most likely to have used digital and digital banking services more frequently in the last 18 months. 30% of UAE consumers were classified as ‘Techcelerators’, compared to a global average of 33%.
- Ethical bankers: Young, purpose-driven savers that want to make a positive impact in the world. This tribe is second largest globally, making up 31% of respondents, and nearly half (49%) are aged between 18 and 34. This group is most likely to pay a premium for financial services that help the environment or local communities and more than three quarters in the UAE (76%) prefer banks that put purpose over profits, UAE consumers most strongly identified with the ‘Ethical Banker’ tribe, with 34% falling into this category – higher than the global average of 31%.
- Convenience cravers: One-stop shoppers who want all-in-one services at their fingertips, and at no extra cost. This group makes up nearly a quarter (23%) of respondents globally and are predominantly middle-aged or older individuals — with more than half (55%) aged over 35. This group is least likely to pay a premium for services that save time or offer flexibility, expecting a best-in-class customer experience as standard.
- Covidpreneurs: Entrepreneurs who have set up their own business during the pandemic, in need of easy-to-use and reliable business banking services. Covidpreneurs are the youngest tribe globally, with almost two thirds (64%) aged under 35 and a quarter (25%) under 25. This group is joint most likely to agree favourable business services are important in a bank and most likely to invest in traditional assets.
- Neo Asset hoarders: New asset owners who want to use financial services to buy, trade and hold assets. This group is the smallest, but rapidly growing tribe globally. Two thirds (66%) are male and over half are under the age of 35. This group is most likely to own neo assets, including cryptocurrency (75%) and NFTs (26%,) and most likely to agree the ability to buy, sell or manage neo assets is important in a bank.
Miljan Stamenkovic, General Manager MENA at Mambu, said: “This report tells us that consumers in the UAE are progressive and forward-thinking when it comes to their finances. They strongly identify with the Ethical Banker tribe more than any other showing clear desire for their money to do good, whether that be for the environment or social and humanitarian causes, UAE consumers are demanding their banks do better.”
“What this highlights is a significant shift in attitude that banks and financial services must pay serious attention to, as the research suggests that these consumers are actively turning away from banks that do not put purpose over profits. The Islamic banking industry is relatively new being only 40 years old, making it the ideal environment to build on this ethical banking opportunity.”
For a full breakdown of the five tribes and regional analysis by country, you can download The financial tribes you need to know report here.