Making Innovation Matter

And Identifying Customers Who Care
by Craig Weber,  Michael Fitzgerald, February 6, 2015
North America

Abstract

Innovation clearly matters to financial services consumers – especially to those who are active and “highly digital.” Knowing which groups to target with innovation increases the success of these efforts.

The latest report from Celent looks at how innovation capabilities impact consumer views of financial institutions.

“Consumers often say they are open to technological change and value innovation,” says senior analyst Mike Fitzgerald, coauthor of the report. “But as digital tools have matured, it has become possible to focus on what consumers do, rather than what they say.”

“We believe that segmentation based on consumer behaviors, or what we call ‘Digital Propensity,’ will allow financial institutions to apply scarce innovation resources to greater effect,” says Craig Weber, CEO of Celent and coauthor of the report.

The report defines several segmentation characteristics and highlights how focusing on those characteristics could make innovation efforts more effective.

The report is based on a survey of over 800 consumers in North America and explores their use of digital technology, the frequency with which they use financial services, and the extent to which innovation reputation influences their choice of providers.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

 

Key Findings

1

Introduction

3

 

Key Research Questions

3

 

It Starts with a Disconnect

3

Consumer Views of Innovation

5

 

Impact of Innovation

7

Segmentation in the Digital World

9

 

Segmenting by Digital Behavior

10

 

Financial Service Products Usage

12

Does Innovation Matter?

14

 

Digital Propensity and Innovation

14

 

Activity Levels and Innovation

15

 

Age and Innovation

16

 

Summarizing Innovation’s Impact

16

Insights Via Segmentation

17

 

Digital Propensity and Usage

17

 

Digital Propensity and Age

18

 

Segmentation Results

18

 

Putting Segmentation to Work

19

Next Steps

20

Appendix: Survey Respondent Overview

21

Leveraging Celent’s Expertise

23

 

Support for Financial Institutions

23

 

Support for Vendors

23

Related Celent Research

24

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