We have been looking at the results of ground-breaking new research from Accenture and Fjord on the subject of Money Mindsets. These are the four new financial behavioral segments with which bankers should become acquainted if they want their product development and marketing efforts to be on target.
The fourth and final mindset is that of the Explorer. These people define success by saving money and making trade-offs so they can be happy and live comfortably. Explorers are spread evenly across age groups and household types, but they skew female and toward higher income groups.
Explorers believe too many rules and too much structure inhibit a well cultivated intuition. Quality of life defines success and financial needs must be balanced with other needs. Their definition of “financial independence” is that they can do what they want in the future. Explorers are confident; they think everything will ultimately be fine, so there is no need to be anxious.
Explorers take an analytical, practical approach to new situations. They take care of bills and payments quickly but generally prefer minimal engagement with financial services providers. They are unlikely to switch banks, provided things move along without much effort. They like low-touch services that more or less take care of themselves, as well as simple analog tools like writing down their checking and savings account balances. Explorers do, however, show an interest in investment tools, such as Learnvest and Personal Capital, and are willing to work with advisors if they see value.
Banks that are looking to reach customers in the Explorer Money Mindset need to provide support and resources, not instructions and rules. By developing these tools that put the customer in charge while making payments and tracking fast and simple, they will meet the needs of this segment.
If you’d like to explore this research more, please look at the Accenture/Fjord report titled Mindset Segmentation: Human Insights for the Financial Services of the Future, which contains many useful insights into changing consumer behaviors and preferences. If you would like to explore the implications of this research in more detail, please contact me at requests.ADMS@accenture.com.