Who chooses whom? The bank to your client or the client to your bank? Who should do it? Does this impact how efficient and competitive the country’s banking market is? The questions, I am aware, would seem theoretical; But they are not.
To the extent that we have passive banking clients, due to lack of interest, capacity or information, we will also have a market where banks will be the ones who will set the pace and pace of competition and innovation.
The credit card market is a good example of the relative (and understandable!) Lack of client initiative.
In the country, 7 or 8 out of 10 cardholders were “selected” by their bank to receive their credit plastic. How? For the sometimes annoying calls offering the products or because the client already had his payroll account (which he did not choose either) at the issuing bank.
Very, very few were the ones who did the exercise that any minimally informed consumer would do: find out about the existing offers, compare them and select the one that best suits their needs and desires that only they (and not the banks!) Know about.
What is the reason for the lack of productivity of the clients? Continuing with the plastic example, it can be due to the great variety of offers and the complexity of choosing a credit card and rejecting others.
For example, there are 22 financial intermediation entities that offer plastic money in the country. Some, I admit, even I did not know they existed!
In total, there are more than 220 different types of credit cards. Some entities have up to 34 different plastics. What’s more: there are potentially up to 96 variables, of attributes, benefits and costs, to be considered on each card.
So things, how to achieve a change, even cultural, in how we relate to banking and its increasingly diverse offer of products and services?
Five steps to start your choice
I think it is possible to begin to achieve this change in the financial consumer, through new tools that systematize the entire market offer, in such a way that the comparison, decision and election process is streamlined.
Let’s see the example of the cards.
To select your ideal credit card, a first step that the user must give is to answer a very simple question: What will be the purpose of the plastic?
The variety and specialization of cards in our country is growing.
From cards to start your credit to those that will help you recover it.
They range from those that allow you to receive discounts in your supermarket to others that will open the doors of all airports in the world.
Is it just to buy gas? For business expenses? Or for young people, women or Eaglets (Champions)?
Where is the client interested? Because if it is in San Juan de la Maguana, you will find only five issuing banks. In the District? There you will have twenty entities ready to serve you your plastic.
Currently, with which entity does the interested party work on the card, be it as a payroll client or other services? It should not be mandatory to take the card in the same bank, but it is a good idea to at least consider your offer, because life could be simplified by the procedures involved in managing and monitoring a card, and you can also become a more important customer.
What is the income level of the potential cardholder? RD $ 20 thousand? Maybe a “Classical” will be better, and that it will be accompanied by a financial education program. RD $ 600 thousand? Have an “Infinite”, “Signature” or “Black”.
Finally: Will you finance your consumption? It’s about being realistic and not cheating. Minimum payment or total payment? Because if it is not the total, cards with credit products deferred to 28% should be considered, which return 50% of the interest on the financed balances, or that charge you 42% instead of the generic 60%.
Is it possible to answer these questions? In a simple and free way? In less than two minutes? Can you reduce the list of 220 credit cards to a handful of only 10 or 20 plastics that meet what you are looking for and that can be compared? Can you contact the issuing bank, to indicate your interest in a specific card, with only the “click” of a button?