Long-term tenure with a bank no longer guarantees customer loyalty. Recent research from Zafin uncovers surprising insights into customer behaviour in the UK, with insights that carry significant implications for banks globally. As we navigate a world increasingly driven by data and the prominence of digital, these findings highlight critical opportunities to reimagine loyalty programmes, enhance customer engagement and capture share
The Problem: Tenure Doesn’t Guarantee Loyalty
Zafin’s research reveals that while 46% of UK customers have been with their bank for over 10 years, a staggering 29% have seriously considered switching, and 47% have even briefly entertained the idea. This paradox suggests that even longstanding relationships can be fraught with uncertainty. Customers today expect banks to offer more than just stability; they demand dynamic, value-driven experiences that evolve with their financial
needs. In this context, traditional methods of customer retention are falling short, signalling the need for innovative, data-centric loyalty solutions.
The Opportunity: Fragmentation and Rewards
Another striking insight from the study is the growing fragmentation in customer relationships; 41% of respondents now use multiple banks for different products. This trend highlights that customers are no longer satisfied with a one-size-fits-all approach. Instead, they seek specialised solutions that suit their financial behaviours and service
expectations. For banks, particularly those who have prioritised mobile first, this fragmentation underscores the urgency to integrate customer data across products. A comprehensive view of individual customer journeys can empower institutions to deliver more personalised, cohesive banking experiences, turning fragmented relationships into unified, holistic engagements.
When it comes to rewards, the numbers are concerning. Only 16% of customers report consistently receiving benefits from their bank, and an alarming 57% say they receive no rewards at all. Yet, 73% of respondents expressed a desire to earn points for everyday financial behaviours such as saving regularly, paying rent, or holding multiple products. Moreover, 48% would prefer to redeem these rewards flexibly across various loyalty programmes or with a range of partners. These statistics make it clear: the current
rewards schemes are not meeting customer expectations. Modern banking customers
crave a rewards ecosystem that is both extensive and flexible, one that connects
their financial well-being with lifestyle benefits.
Call to Action: Transforming Loyalty with Moroku Odyssey
At Moroku, we recognise that the future of customer loyalty lies in harnessing the power of advanced data maturity and behavioural insights. Our Odyssey platform is designed to help banks and credit unions navigate these challenges by:
- Driving Hyper-Personalisation: Leveraging aggregated data to deliver tailored rewards and offers that resonate with each customer’s unique habits and financial goals.
- Integrating Fragmented Data: Breaking down silos across banking products to create
a seamless, unified view of customer behaviour, enabling more cohesive service offerings and reward strategies. - Revolutionising Rewards Programmes: Transforming transactional rewards into dynamic, behaviour-based benefits. With Odyssey, customers can earn points for
everyday activities, from saving money to paying bills, and enjoy the flexibility to redeem these points across multiple platforms and partners. - Customer Retention Strategies offering a holistic view of a customer’s financial situation, including budgeting, spending, and investing, builds value beyond just interest rates. Engaging customers around their money and making the experience fun and rewarding, rather than just easy, can lead to long-term loyalty and customer acquisition.
- The Power of Gamification Moroku prioritises using game design principles to engage customers strategically, winning through skill-building and overcoming challenges, not just superficial rewards. By architecting these elements into the user experience, financial tasks can become more engaging and drive positive financial behaviours.
- Data and Behavioural Science We are incredibly illogical beings who make decisions not because they are correct but to make us feel better. Connecting vast amounts of financial transaction data with behavioural science, noting that people are often driven by emotions rather than logic, enables us to design financial experiences that make users feel good to encourage desired actions.
By aligning customer rewards with meaningful financial behaviours, Moroku Odyssey helps institutions bridge the gap between expectation and experience. The result is a more engaged customer base, improved retention, and ultimately, a stronger competitive edge in a data-driven market.
Looking Ahead
The insights from Zafin’s research challenge us to rethink what loyalty means in modern banking. Banks must move beyond the assumption that long tenure equates to loyalty. Instead, they need to harness data to create genuine connections, delivering rewards and experiences that align with the evolving needs of today’s customer.
As the world of finance becomes ever more dynamic, the institutions that best leverage data maturity will be the ones to thrive. With Moroku Odyssey, your organisation has the strategic advantage needed to transform customer loyalty, ensuring that every interaction adds value, fosters engagement, and secures long-term trust.
Ready to redefine customer loyalty? Discover how Moroku Odyssey can help your institution build an engaging, flexible rewards ecosystem that drives loyalty in the digital age. Contact us today to start your transformative journey.