Capco Study: 72% of Customers See Personalization as “Very Important” in Today’s Financial Services Landscape

0

NEW YORK–(BUSINESS WIRE) – The ability to personalize banking experiences is a key expectation of bank customers today, according to a new Capco research report, “Insights for Investments to Modernize Digital Banking.

Customers also want digital features that save them time managing routine and unmarked tasks, and they also want highly personalized banking relationships. They value text alerts, want to be notified of more efficient trading opportunities, and also want to be able to track multiple accounts using a single dashboard.

“The arrival of digital banking introduces an operational paradox for the financial services industry,” says Lane Martin, Partner, US Banking & Payments Practice at Capco. “How does a bank balance the seemingly contradictory desire to digitize the banking experience while maintaining a personalized relationship with each individual customer?”

To understand customer expectations of financial institutions (FIs) in the digital age, Capco surveyed 1,008 U.S. consumers via an online questionnaire asking them about personalization, switching banks, customer engagement and digital features. sought.

The main findings include:

  • Digital features that bank customers want and will pay for:
    • 86% of respondents are most interested in cashback offers based on preferred card benefits, followed by 82% for cashback offers based on bank loyalty.

    • 26% are willing to pay for some great rewards. Gen Z and Gen Y tend to be more inclined to pay for rewards than Gen X and Baby Boomer Generation.

    • 88% of survey respondents would like to receive alerts before recurring charges, and 31% of customers are willing to pay for this feature.

  • The human touch remains vital for customer engagement: Consumers will be loyal to a bank’s brand if they find it easy to engage online or via mobile – but they still want to speak with someone when needed.
    • A majority of survey respondents (63%) indicated a desire for personal one-to-one conversations with bank representatives, with only 37% favoring chatbot or SMS communications.

    • Willingness to engage with a chatbot decreased with age, with 18% of Gen Z favoring chatbots, compared to just 8% of the baby boomer generation.

    • The baby boomer generation promotes face-to-face interactions. They are more likely to speak with a branch representative (36%) than Gen Z (23%).

    • Engagement preferences varied slightly depending on the type and size of the bank. Community (34%) and regional (41%) bank clients preferred to speak with a branch representative, while super regional (38%) and large institutional clients (36%) preferred to speak with a branch representative. customers by phone.

  • Personalization – here is the CRM bank: The desire of customers to personalize their banking relationship is the strongest message from survey respondents.
    • 72% of respondents rated personalization as “very important”, while only 8% said it was not. 20% of respondents were neutral on the subject.

    • Millennials value personalization the most (79%), followed by 75% of Gen Z, 74% of Gen X and 58% of Baby Boomers.

    • 86% of people who think personalization is important to their experience are willing to provide feedback on their experiences at least once a year. Older, higher income customers are more willing to provide regular feedback.

  • Fraud remains a concern: 75% of those surveyed cited a fraud problem as one of the main reasons for switching banks.
    • Gen Z are the most concerned about fraud incidents (81%), compared to 76% of Baby Boomers, 75% of Millennials, and 72% of Gen X.

“People always want to be able to pick up a phone or walk into a branch to get their questions answered,” Martin notes. “No matter how sophisticated they are, chatbots, FAQ pages, self-guided digital platforms and other forms of non-personalized service have yet to establish the right level of personalization and improved customer experience.

The survey results reinforce the idea that continued investments by financial institutions in improving digital interaction channels can cause customers to reconsider a potential change in their bank.

Download and read the full research report, which offers a clear perspective on market trends, detailed analysis of consumer survey results, and personalized recommendations for bank executives on how to achieve the optimal balance between digital innovation and personalization , while identifying ways to monetize new models of customer engagement.

Capco is a global management and technology consulting firm dedicated to the financial services industry. Our professionals combine innovative thinking with unmatched industry knowledge to provide our clients with consulting expertise, complex technology and package integration, transformational delivery and managed services to move their organizations forward. Through our collaborative and efficient approach, we help our clients to innovate successfully, increase their revenues, manage risks and regulatory changes, reduce costs and improve controls. We specialize in banking, capital markets, wealth and asset management and insurance. We serve our clients from offices located in leading financial centers in Europe, the Americas and Asia-Pacific. To learn more, visit our website at www.capco.com or follow us on Twitter, Facebook, YouTube, LinkedIn, Instagram and Xing.

Share.

About Author

Comments are closed.