Banks' huge investments in innovation may not yet be on the mark in creating experiences their customers want, according to new research from Genpact. The survey shows that customers want both the convenience of new technology and the personal service they're used to with traditional channels, underscoring challenges that financial institutions face in achieving return on investment from digital transformation initiatives.
Tag: online banking
The most recent Insight Summary Report from Mercator Advisory Group’s CustomerMonitor Survey Series reveals that mobile banking is growing rapidly in the United States. According to the report, titled Digital Banking: Improvements Needed to Compete with Fintech, 64% of U.S. consumers with at least one account at a bank, credit union, or other financial institution perform mobile banking activities, but they are more likely to banking via their mobile device using the financial institution’s website than a mobile banking app.
"A recent KPMG report says that 57% of legacy banking institutions are only in the planning phases of upgrading their systems to provide more mobile digital banking services. And fintech competitors are “nipping at their heels,” happy to take advantage of what is clearly a “disconnect” between today’s financial services consumers and the banks that serve them," Michael Salo writes in business2community.
Digital banking technology keeps making it much easier for U.S. consumers to manage their finances on the go. So easy, in fact, that a third of them bank on their phones and online more than they did a year ago — and many are doing it at work, at the store or even while on dates.
Mintel Comperemedia recently found that 45% of adults with access to the Internet have bypassed their banks' online bill payment service and go directly to the biller's website instead. Twenty-two percent of online banking customers have never paid a bill online at all. The same survey found that 70% of adults who use the Internet use online banking. Another 7% have signed up for the service, but have never used it. "Despite the high penetration, banks are still eager to increase the usage of online banking," says Susan Wolfe, vice president of financial services at Mintel Comperemedia. "It's no secret that online banking creates deeper relationships between banks and customers, so banks are keen to pull in more users." Susan Wolfe adds, "offering eBills is a way for banks to ensure that customers continually return to their website and rely on the banks' services, rather than turning to other third party sources."
Nearly one-half of Generation Y Internet users planned to sign up for a new financial account in the next year, according to research from financial technology provider Fiserv. They are also more likely than any other generation to consider switching banks and to recommend their primary bank to others, making them an attractive target for financial services marketers. With 80% of Gen Y Web users banking online, they are comfortable performing financial transactions and lead the way among consumers making online the top banking method in the US.
It’s official. The growth in the number of consumers who prefer to use Internet banking services has been steady. And now, the percentage of consumers who prefer this method exceeds the percentage of those who would rather walk into a traditional branch to conduct their business.