Bank customers yet to fully embrace digital: Genpact

Bank customers want the convenience of technology as well as human service, according to new research from Genpact.

The survey of more than 6000 consumers in the United States, United Kingdom and Australia shows that customers appreciate digital technology but still want the personal service they have been used to with traditional channels.

This highlights the challenges that financial institutions face in achieving return on investment (ROI) from digital transformation initiatives.

More than one in four consumers surveyed would be comfortable with 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. At the same time, more than half (57%) of respondents say face-to-face contact at the branch makes opening an account easier. Moreover, satisfaction levels with service representatives at branches and on the phone significantly outrank customers’ experiences with mobile, webchat, text and other digital channels.

“When it comes to achieving ROI from technology investments, banks are caught between a rock and a digital place,” said Michael Menyhart, Growth Leader, Banking and Financial Services, Genpact.

“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.”

Consumers expect and trust financial institutions to protect their data, and they would consider leaving their banks if that trust is broken. A fraud incident that is handled poorly by their financial institution is the top reason cited (at 55%) by respondents who would consider moving to another bank. Given that 36% of all consumers surveyed report being a fraud victim at least once, there is a sizeable base potentially up for grabs to competitors. Even satisfied customers will not necessarily stay loyal. Other reasons for leaving banks are for better financial incentives (cited by 42% of consumers who would consider switching) and not having a quality digital service (31%).

Digital-only banks also are vying to take customers away. Generation Z and millennials (aged 18–34) are significantly more likely than baby boomers (aged 55 or more) to be willing to switch to a digital bank (cited by 40% of younger respondents vs only 15% of older people surveyed). Still, all age groups polled trust traditional banks much more at fraud protection, with 74% expressing confidence in traditional banks vs only 41% who say the same about fraud protection at digital banks.

While the desire for human contact at banks still rules across all age groups, Generation Z and millennials express much higher satisfaction rates with digital channels than boomers. Younger customers are nearly five times more satisfied with mobile apps, and almost six times with text. In fact, even new channels like social media are making inroads, with 11% of younger respondents saying it is a preferred method to communicate with their banks. To stay competitive, financial institutions must heed the rising interest in digital channels, yet also remember to balance service with the personalised attention customers expect from the human side of banking.

Image credit: ©stock.adobe.com/au/georgejmclittle

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