Industry Research : Consumers Want a More Seamless and Personalized Banking Experience
Cisco announces the results of the Cisco Customer Experience Report focused on retail banking. The global report examined consumers' desire for a banking experience that is more personalized to help simplify the management of their finances over multiple channels, including online, mobile phones, telephones, video conferencing and bank branches. It also examined views about the privacy of their personal information and the value of financial management tools used in their daily lives.
Consumers globally identified the most important attributes when interacting with their financial institution or financial advisor as: availability (63%), competence (65%), and efficiency (68%). Consumers indicated a willingness to exchange more details about their financial habits and having banks be more active advisors in exchange for greater protection from identity theft (83%), increased savings (80%), personalized service (78%), and greater simplicity (56%) in managing their finances. Only 54% of consumers expressed a desire for automated systems to provide financial advice or recommendations, while 59% indicated that they would be comfortable with location-sensitive recommendations delivered to a mobile device.
The majority (71%) indicated being comfortable with the increasing use of virtual communications in addition to in-person financial conversations, with emerging economies slightly preferring on-demand access to expertise (48%) over speaking with a particular individual which was favored in developed economies (52%).
Overall, the report demonstrates consumer interest in more personalized, timely and valuable connections with banks; the type of connections made possible by what Cisco describes as the Internet of Everything (IoE). The Internet of Everything brings together people, process, data and things to make networked connections more relevant and valuable than ever before. Cisco recently released an Internet of Everything economic analysis that identified banking and insurance as industries positioned to capture as much as 9% of the $14.4 trillion in bottom-line value that will be created over the next decade by the Internet of Everything innovations.
Highlights and Key Facts:
The global report, conducted in early 2013, includes responses from 1,514 consumers and 405 bank professionals across 10 countries. The report studied the views of how and when consumers want to engage with their banks across multiple channels for activities ranging from account monitoring to acquiring financial advice.
Majority (69%) of U.S. consumers' desire for more simplified personal financial services
-- Personalized services Consumers want from their bank: 77% indicated a
desire for more identity theft security, 73% wanted advice to increase
their savings, 67% requested more financial education, and 47% wanted
an assessment of their financial status as compared to other clients.
Interestingly, bank managers thought consumers' desire for these
services would be roughly 20% higher when surveyed.
-- Banks' ability to deliver personal financial services: Only 46% of
U.S. consumers feel their bank has enough information to offer them
personal services, while 58% of U.S. bankers feel they have enough
personal information on their customers.
Consumers' willingness to share private information with bankers
-- Fingerprints for more security: 53% of U.S. consumers would provide
their bank with a fingerprint or other biometrics to verify financial
transactions to protect the consumer against dangers such as identity
theft. Globally 61% of consumers would share biometric data, with
Japanese consumers least likely with only 33% and Chinese consumers
are most likely at 94%.
-- Simplified money management: 60% of U.S. consumers would provide
additional personal information in order to receive greater simplicity
in managing their finances.
-- However, keep personal information in the vault: 57% of U.S. consumers
would not want their bank to share their personal information outside
the bank, even if it improves quality of service in other areas. 72%
of consumers in Russia and Germany were unwilling to have their bank
share personal information.
Majority of Global Consumers virtually connected to their bank
-- Willingness for virtual meetings: 63% of U.S. consumers are
comfortable communicating with their financial provider using
technology (such as texting, email or video) instead of seeing them in
person. Globally 7 in 10 consumers and 92% of bankers are comfortable
communicating using virtual technology.
-- Even mortgages and loans could be managed virtually: Almost half of
consumers in U.S. (48%) would be comfortable entirely securing a loan
or mortgage using technology like video to communicate with their
-- Computers preferred to smartphones for video: Only 21% of U.S.
consumers would favor a smartphone for video conversations with
bankers, with most (79%) preferring laptop or desktop computer.
-- Physical presence is still important especially to capture new
customers: 46% of U.S. consumers would open an account with a bank
that is completely virtual if it offered the best and more secure
services -- with French consumers least likely to meet virtually with
only 44% and Chinese consumers are most likely at 91%.
Jorgen Ericsson, vice president, Global Financial Services Practice, Cisco Internet Business Solutions Group (IBSG) "The battle for the financial consumer has begun. Retail banks that succeed in providing a seamless customer experience across all channels to market -- branch, mobile, online, contact center -- will be the winners of the future. Superior customer experience will be the only long term sustainable differentiator."
Al Slamecka, marketing manager, Financial Services, for Cisco "This report reveals that consumers want more personalized services that ease how they manage their finances and are willing to provide banks with more private information in exchange for these enhanced services. Banks that take advantage of this opportunity to improve customer centricity to deliver more personalized services that will not only capture wallet share but also strengthen trust and loyalty to their brand with their customers."
Posted by Veronica Silva Cusi, news correspondent
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Published: Tuesday, March 26, 2013