The huge investments by banks in innovation may not yet be on the mark in creating experiences that their customers want, according to new research from Genpact
Genpact’s survey of more than 6,000 consumers from the United Kingdom, the United States and Australia reveals that customers want the convenience afforded by new technologies, as well as the personal service they’re used to with traditional channels. This underscores the challenges that financial institutions are facing in achieving return on investment (ROI) from digital transformation initiatives.
The key findings from the survey show that more than one in four consumers would be comfortable with using a digital assistant, such as Siri and Alexa (or a bank’s own service), to open a new account for them – a clear sign of growing comfort with artificial intelligence as it becomes part of everyday lives.
Nine out of ten customers who have visited their bank’s branch say they were satisfied with the experience, and over half (57%) say visiting a branch makes banking easier.
Poorly handled fraud incidents are most likely to push people to switch
Yet the study also found incumbent banking institutions are still trusted more by consumers to fight the threat from fraud.
Nearly a third of consumers (31%) would switch banks if their current bank had a poor digital service. Michael Menyhart, growth leader, Banking and Financial Services at Genpact believes traditional banks are “caught between a rock and a digital place”.
Consumers want it all: the speed and convenience of new technology, and the human contact they get at the branch and on the phone. Loyalty is fleeting, and to encourage it, financial institutions must better understand what their customers want and need across all channels. Technology alone isn’t the answer.
The study also saw generation Z and Millennials report higher levels of satisfaction with the ease and simplicity of digital banking than Baby Boomers. These two groups are significantly more likely than Baby Boomers to be willing to switch to a digital bank (40% of younger respondents vs. only 15% of older respondents).
To read the full report, “Creating winning customer experiences in banking,” click here.