New technology has erupted in all aspects of life. In many cases, technology has gone from being unrealistic or superfluous to being of vital importance. This is precisely what has happened in the financial sector, and over time, the use of new technology has continued to increase. Obviously, the evolution of society is a major driver of these changes, but other factors are also playing a key part, including COVID, branch closures and reduced customer service hours.

Traditional banking is quickly disappearing. According to data from the Bank of Spain, of the 43,000 bank branches that existed in 2010, just 18,556 remained in April 2022 (similar to the number of branches in 1976). In just three months this year, 548 branches have closed. Last year, some 3,149 bank branches vanished (14.5%). Furthermore, in those branches that have remained open, there are fewer employees. In “empty” Spain, branches have very limited opening hours or are only open by appointment. These extensive closures have forced many customers, especially those in more remote areas, to either switch banks or use new technology in the form of online or mobile banking.

In light of this new paradigm, digital banking has had to respond to some immediate challenges, namely the accessibility of services and the inclusion of all customers. For all banks, the customer plays a key central role and should come first. However, it appears that the banking industry has neglected certain age groups. If banks are not able to reach all groups, particularly older people, they will be less efficient, less effective and less profitable. According to GDS Modellica, when it comes to serving customers, firms need to performseveralf complex calculations to offer each customer the most appropriate product that is also profitable for the bank. This is why it is vital to go beyond mere segmentation and achieve a true one-to-one in real time. To understand what consumers want, they need to first observe their behaviour, not just understand their demographic characteristics. How do customers interact with their brand? What topics or products are they most interested in? Thanks to companies like GDS Modellica, it is now possible to analyse primary behaviour data and combine it with third-party data to create a more complete and detailed consumer profile.