Is social sentiment driving the progress of challenger banks?

Is social sentiment driving the progress of challenger banks?

In a progressive financial services landscape, technological innovation has become a key priority in the banking sector. With Challengers blazing the trail in digital, Traditional banks are fighting to keep pace. Maru/edr’s financial expert, Elliott King, identifies and analyses the customer sentiment towards old brands and new, in this digital-centric society.

We are living through a changing financial landscape. Challenger banks – the likes of Virgin, TSB and Metro – are disrupting the established order with an enthusiasm for change and an awareness of the gaps in the market. As the Bank of England noted in the aftermath of the financial crisis, these banks would be prepared to change the game – “whether it be the service they provide, the customers they target, the products they sell or the technology they use.”

Nearly a full decade later and we’re beginning to see the legitimization of these banks. As technology has developed at breakneck speed it has been easier for challengers to take advantage of the increasing gaps in the market that this has created. Unencumbered from sprawling – often aging – technology legacy systems, and without ties to vast real estate like their traditional cousins, challenger banks have been able to drive digital banking to match a progressively digital-centric society.

But has anyone heard the voice of the customer on the issue?

In an effort to quantify new brand sentiment compared against traditional banking, Maru/edr have run a detailed analysis on customer engagement using our text analytics tool – focusing on the Twitter accounts of several UK banking brands.

This follows a similar exercise conducted on established vs challenger brands in both the hospitality and media sectors, where results showed that new brands were generating higher social media engagement that, ultimately, reflected a higher positive sentiment.
Our new infographic, below, has compiled the results to paint a clearer picture of consumer sentiment in the current banking landscape.

Our new infographic, below, has compiled the results to paint a clearer picture of public sentiment in the current financial landscape.

Methodology

The sentiment analysis was generated using Maru/edr’s HUB Text Analytics tool – an innovative text analytics solution that combines a world-class engine with an interactive and intuitive interface. The search was run from 16th January – 01st March and gathered data from the following social media accounts: @santanderuk, @santanderukhelp, @RBS, @RBS_Help, @Natwest_Help, @AskLloydsBank, @HSBC_UK, @HSBC_UK_Help, @Metro_Bank, @MetroBank_Help, @TSB, @VirginMoney, @askVirginMoney.

 

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Elliott King is the finance expert at Maru/edr, working on Voice of the Customer solutions for the Financial Services industry. Connect with him on LinkedIn or email him directly at Elliott.King@maruedr.com

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