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How Banks Can Differentiate Themselves in 2006

How Banks Can Differentiate Themselves in 2006

Aite Group advises banks to differentiate themselves with hot product offerings and innovative acquisition and management strategies.
By Ekaterina Walsh

Boston, MA, January 9, 2006 – In a new report, How Banks Can Differentiate Themselves in 2006, Aite Group explores the hot new consumer banking products and the strategies to market them and win over customers.

Three new banking products capitalize on consumer anxiety, overall economic trends, and demographic changes and are poised to grab Americans' wallets this year: 1) Identity theft/fraud prevention and insurance; 2) Cash-back credit cards linked to bank accounts, and 3) Hedge funds for the masses.

These products won't succeed without relevant customer acquisition and management strategies. This year, banks must focus on innovative marketing vehicles, stealing a page from advertisers and retailers that have experimented with social networking sites and use podcasting to hyper-target their customers.

"But the biggest break-through in 2006 will come from automating switching," notes Ekaterina O. Walsh, Ph.D., Research Director with Aite Group and author of the report. "For most consumers today, pitting the bland choice between a beach umbrella or a George Foreman grill against the notorious chores of switching, leaves little incentive to defect. The bank that breaks the code in automating switching will win the most customer share."

This is a 5-page Impact Note. Clients of Aite Group's Retail Banking service can download the report.