Banking / Finance

Get the stats! On customer experience, mobile banking, personalization and big data for banks

09th Mar `16, 03:32 PM in Banking / Finance

Technologies like big data analytics, digital personalization, and marketing tech have gone from early-adopter novelties, to main stream…

Manu Jeevan
Manu Jeevan Contributor
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Technologies like big data analytics, digital personalization, and marketing tech have gone from early-adopter novelties, to main stream essentials. It’s therefore no secret that the banking landscape has changed dramatically over the past few years.

So we’ve rounded up thirty powerful stats that are sure to be eye-openers, if not total mind-changers.

1) Customers conduct more than 50% of their banking interactions through digital channels in 18 of 22 countries surveyed. [Source : Customer loyalty retail banking]

2) 43% of customers believe their primary bank does not understand their needs. [Source : Cisco]

3) 31% feel their bank is not helping them reach their primary financial goals. [Source: Cisco]

4)  Top Five Wants of Today’s Financial Consumer:

  • Reward me for my business(81%)
  • Simplify my life by providing “anytime, anyplace” access to my balance(61%)
  • Know me as a person(58%)
  • Look out for me by providing me with wealth-building advice(55%)
  • Anticipate my needs by telling me what I am spending money on and how I can save(52%)  [Source: CGI]

5) Out of 160 large North American brands only three percent had a Forrester Customer Experience Index (CEI) in the Excellent” range.

The banking industry had an average CEI of 70 and came in sixth out of 13 industries. Critical to delivering a superior customer experience across all banking channels is the need to provide consistent sales and service transactions across branches, ATMs, online and call centers, while adopting and introducing mobile and social media features to the consumer. – Forrester. 2012.

6) Mobile is the most-used banking channel in 13 of 22 countries and accounts for around 30% of all interactions worldwide. [Source: Bain]

7) Mobile banking users worldwide will exceed 1 billion in 2017, representing 15% of global mobile subscribers. [Source: Juniper Research]

8)  Competition from non-banks could erode one-third of traditional bank revenues by 2020.[Source: Accenture]

10) Respondents under age 35 are more likely than older customers to bank via mobile devices. But the share of customers age 65 and older who use mobile is a substantial 30% —and mobile usage rose sharply among all age groups. [Source: Bain]

11) 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 the U.S. (48%) would be comfortable securing a loan or mortgage entirely through technology like video for communications with their bank. [Source: Cisco]

12) 46% of people managing their finances online switch between devices before completing the activity. [Source: Google]

13)  51 percent of US smartphone owners have used mobile banking in the past 12 months, up from 48 percent a year earlier. [Source: Federal Reserve]

14) 60% of financial institutions surveyed believe improving customer centricity is their biggest strategic priority. [Source: SAP Perfomance Benchmarking]

15 ) 27% of financial institutions surveyed have a 360-degree customer view and offer a unified experience across products and channels. – [Source: SAP Perfomance Benchmarking]

16) 53% of millennials don’t think their bank is any different from other banks. 73% would be more excited about a new financial services offering from Google/Amazon/Apple/ Square/Paypal than their own bank – 33% believe soon they won’t need a bank at all. [Source: Millennial Disruption Index]

17) In 2014, there were approximately 40 billion debit card transactions at an average swipe fee of 31 cents each, equalling $12.4 billion in total. [Source: Federal Reserve] .

If financial institutions can grow their share of this pie by winning more account holders through advocacy, they stand to reap tremendous profits.

18) 59% of mobile phone users between the ages of 18 and 34 now access their bank, credit union, credit card or brokerage account on mobile devices, proving how imperative it is for banks to make those options more appealing and user-friendly to retain loyal customers. [ Source: Emarketer]

19) Google spends $1 billion per quarter and major banks often spend $5 billion a quarter. Yet banks can’t personalize offerings for 10 to 30 million people while Google and Facebook can personalize communications to hundreds of millions. [Source: Forbes]

20) Organizations only process about 10-15% of available data, almost all of it in structured form. Typically, this data is in line-of-business silos or functionally separated from the rest of the relevant data set. [Source: TCS]

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