In addition, across the Asian markets, very few of the large incumbent banks have been able to increase their share of the 25 to 34 segment in recent years. Three notable exceptions to this have been ANZ and CBA in the Australian market and HSBC in the Hong Kong market.
In the case of these three banks, success has been driven by a combination of specific acquisition campaigns focussed on the younger demographic segments, a focus on customer experience and importantly, a focus on digital engagement.
Indeed, in attempting to retain the 25 to 34 segment, the importance of digital engagement should not be underestimated.
RFi Group found that this age group was the most likely to be 'highly digitally engaged' (determined by using mobile or tablet banking more than once a week) and that if they could be kept engaged, then they offered enormous opportunity for main bank product cross-sell.
In fact, a highly digitally engaged consumer has 4.4 unique products with their main bank, compared to just 2.7 for a non-digitally engaged consumer.
The caveat on this digital engagement is that highly digitally engaged consumers are the least sticky of all customers despite their increased product holdings.
Indeed, any bank looking to drive digital engagement needs to understand that once they embark on the initiative, they must continuously adapt and improve their digital proposition so as not to fall behind the competition.