Imagine you finally decide to buy that new sofa, or your friend asks you to chip in for a group trip, or you just want to check in on your savings account. 

What's your first move? 

If you're like 88 percent of Latin Americans, you’ll be reaching for your smartphone to make payments and balance checks.

But what about if you wanted to open a new account, or even switch banks? 

Once again, if you’re up with the majority (55 percent) of Latin Americans, you now prefer to open a new bank account using your smartphone instead of in person.

The reality is that, for an increasing number of Latin American consumers, their bank is now just another app jostling for attention on a phone screen, and every app is just one swipe away from oblivion. 

For banks, this sharply redefines customer loyalty: 

• Your customer may already be using another bank – nearly three-quarters (73 percent) of Brazilians now combine an account at a neobank with that of a traditional bank. 

• Or they may have already switched banks before – 40 percent of Brazilians have also changed banks in the last year. 

• Or they’re more than happy to leave you, especially if the app experience is better – 76 percent of LatAm consumers are willing to switch banks for better digital services.

So how can banks respond? We believe that it’s by embracing Gustanomics, the new logic of banking in an app-first attention economy.

So, what is Gustanomics? To put it simply, Gustanomics is all about embracing the new currency of being liked and favorited and learning the new rules to secure your place as one of your customers’ most-used apps.

It is about rethinking the relationship between banks and their customers as more in line of that between consumer brands and their customers.

Every interaction is more than just a transaction; it is a chance to build loyalty by providing positive experiences first, and products and services second. 

Gustanomics understands that this new app-first experience has its positive sides too, for it opens your bank up to the world where the majority of Latin Americans spend an average of five hours a day: social media and instant messaging platforms. In fact, 40 percent of Latin American customers are willing to recommend their bank if it provides an excellent experience on its mobile app.

How can banks and online retailers provide such an excellent app-first experience? We’ve come up with four key pillars that we believe will help you acquire and retain more digital-first, app-first customers:

• Need: Any app offering financial services must be as essential to a user's financial freedom as a maps app is to their mobility. It should offer proactive, personalized guidance, helping users with tasks like finding the right insurance after a car purchase or creating a spending plan to reduce outgoings.

• Incentive: Promoting positive behaviors through incentivized rewards, such as discounts or gamified targets, can help boost financial literacy and enhance user engagement, encouraging the best course of action for each customer.

• Status: Banks can capitalize on their increased proximity to social media and instant messaging (literally just a thumb swipe away) by offering exclusive, limited-edition experiences that are highly shareable.

• Engagement: Engage, stimulate, and even entertain your customers. The closer your app is to the user's favorites bar, the more valuable the relationship will be for both parties.

These ‘Principles of Gustonomics’ really do represent the new rules for the app economy; and everyone is subjected to them - from the latest online retailer, to the most venerable establishment. 

We’ll be sharing more insights, examples and ideas about what Gustanomics could mean for your business and how best to prepare. Whether you agree or disagree, whether you’re convinced or confused, we invite you to join in the conversation!

Contact us to learn more about staying relevant in today’s digital-first banking landscape.