Snippet: From security to user experience and digital banking preferences, we track recent statistics that banks should take note of.

It’s no secret that the age of the customer has dawned, and industries like financial services are overhauling numerous business areas to meet the fluctuating expectations of their customers. Drawing on insights from specialist fields like artificial intelligence, digital marketing, cybersecurity, user experience design, robotic process automation and machine learning, to name a few, banks are covering all their bases in order to be ready for this era.

The process has not been easy, and it certainly is far from being completed – if it ever will be. Digital transformation, or the digital banking revolution as it’s been described by the likes of Chris Skinner, requires unprecedented levels of agility, new ways of working, and, ideally, an openness to innovation and self-disruption. And although most banks understand these requirements, meeting them is no small ask.

The good news is that there is good news for banks in the midst of what is undoubtedly a chaotic time to be a bank. We’ve rounded up five insights from recent industry research that can serve as guidelines for banks embracing the age of the customer.

1.   Banks have customers’ backs

In a survey conducted earlier this year, PYMNTS.com found that more than 65% of consumers in the United States are not interested in switching to different financial services providers. Perhaps unsurprisingly, younger consumers are far more likely to be interested in using banking services provided by non-banks like Amazon and Walmart.1

What’s more, the same study found that more than 90% of bank customers feel that their bank “has their back” – indicating that most banks are getting it right when it comes to establishing a trust relationship with their customers. 

2.   Security matters more

In its 2019 Global Identity and Fraud Report, Experian found that 74% of consumers cite security as the most important element of their online experience, compared to 18% for whom convenience is the most important, and 8% citing personalization as a top concern.2

Banks in the United States, however, should note that according to data published in Extractable’s 2019 Digital Experiences in Banking report, only 25% of consumers believe that their bank “ensures their transactions are safe and secure” and “protects the privacy of their personal information”.3

3.   Consumers want to be more involved

An Entersekt survey conducted by The Harris Poll earlier this year showed that most US consumers are willing to play an active role in protecting their accounts and data. A staggering 90% of consumers indicated a preference for approving some or all transactions on their banking app before the transaction is completed.4

4.   Interactions with banks are digital

Confirming what would come as no surprise to those in the industry, the 2019 Performance Against Customer Expectations report published by FIS found that 73% of consumers’ interactions with banks are digital in nature.5 “Digital banking is no longer a trend,” the report emphasizes, “it is the way”.

5.   Personalization pays off

Personalization has become a buzzword across industries; a strategy recommended to “enrich customer experience and drive revenue”, as a 2019 Gartner report phrases it.6 Companies that heed this advice seem to reap rewards – the same Extractable study referred to earlier found that 93% of companies report having more success in converting prospects into customers when they personalize their marketing.3

Banks, however, are lagging behind. 94% of banks surveyed in the recent Digital Banking Report say that they can currently only deliver basic levels or no personalization at all.

The key takeaway

These statistics highlight three important areas for banks to consider: trust, security, and customer experience. Banks have worked hard at establishing trusted relationships with their customers, and statistics indicate that it has paid off. What they should also work at, is educating customers about security matters and allowing customers to take measures like transaction authentication into their own hands. Visible indications of security measures combined with a sense of control over security can make customers feel safer and more comfortable in their digital interactions. Add to this consistent experiences across digital channels and a personalized approach to services and offers, and banks will be able to capture great returns on their investment in trust.

At Entersekt, we believe in the power of trust. Security is at the heart of our customer-first approach to digital banking experiences. Contact us today to learn more about how we can help you make the most of the relationship you already have with your customers.

Sources

  1. Where will we bank next? Consumer choice and banking services in the digital age. PYMNTS.com. April 2019. https://www.pymnts.com/news/alternative-financial-services/2019/amazon-paypal-walmart-consumer-banking/
  2. Consumer trust: Building meaningful relationships online. 2019 Global identity and fraud report. Experian. January 2019. https://www.experian.com/decision-analytics/global-fraud-report.html
  3. Digital experiences in banking. Analysis report. Extractable. 2019. https://www.extractable.com/2019-banking-report/?2019-august-financial-brand#download-report
  4. App-based banking and payments: US consumer survey. Entersekt. 2019. https://www.entersekt.com/resources/white-papers/survey-usa-2019
  5. Performance against customer experience. US consumer insights. FIS. 2019. https://www.fisglobal.com/pace
  6. Use personalization to enrich customer experience and drive revenue. Gartner. 2019. https://www.gartner.com/en/documents/3839665/use-personalization-to-enrich-customer-experience-and-dr

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Lelanie de Roubaix

MARKETING MANAGER: RESEARCH & STRATEGIC RELATIONS

Lelanie is Entersekt’s research specialist. She keeps a close eye on what’s happening in the industry for Entersekt, and on what’s happening at Entersekt for the industry. When she’s not reading or writing, she takes care of analyst and other strategic relations for Entersekt’s marketing team.

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Entersekt is an innovator of customer-centric fintech solutions. Financial services providers and other enterprises rely on our patented mobile identity system to provide both security and the best in convenient new digital experiences to their customers, irrespective of the service channel. With us, they can concentrate on their innovation roadmap, while delivering intuitive, low-friction digital experiences to their customers.