Bangkok--5 Oct--Core and Peak
The Proliferation of technology and growing consumer engagement with all thing digital are changing many aspects of customer behavior, from product research to buying patterns to banking. Consumer expectations are growing, too: consumers now expect a seamless, high-quality experience across all digital channels, including online and mobile. Financial Institutions (FLs) are responding to consumer
Mr. Taveesak Saengthong, Managing Director, SAS Software (Thailand) Co., Ltd., noted that, Consumers are accelerating their adoption of new technology, which is one key driver for Fls' shift to digital banking. Also important is the influence of leading retailers on consumer expectations. By engaging customers in superior buying experiences, these retailers are conditioning customers to expect the utmost in convenience and personalization. As a result, customers now expect the same-or-better-from their Fls.
Results of the recent BAI Consumer Digital Banking Survey demonstrate that consumers highly value digital banking services, both in how often they use these services and how they use them. Forty percent of respondents use online banking at least five times a month, and 22 percent use mobile banking with the same frequency. In addition, 43 percent reported using online bill pay at least twice a month. In fact, many respondents indicated online or mobile is their preferred channel for a variety of relatively sophisticated tasks. In addition to the 66 percent who prefer these channels for transferring funds, 46 percent prefer them for managing investment accounts and 18 percent even prefer them for resolving an issue with an account.
Still, consumers want more, although satisfaction rates vary by bank size, more than 40 percent of respondents feel neutral, dissatisfied or extremely dissatisfied with mobile banking, and more than 20 percent feel the same about online banking. Perhaps most important for Fls, respondents indicated they would witch to a new FI if it offered innovative products and services.
Furthermore, customers are relying on digital banking services to meet their financial goals. Nearly two-thirds (66percent) of consumers say that personal financial management tools are important digital offerings from their banks. Example, Mobile banking users regularly check their account balances and commonly elect to receive balance alerts, either via text message, according to a Federal Reserve survey, If their balance or available credit is too low, they will forego large purchases
The number of Fls currently offering key mobile banking features, from checking balances to bill pay, further emphasizes the importance of this channel, as does the variety of news features Fls are planning to introduce. Although on one new feature stands out as the overwhelming favorite, P2P payments, balance transfers to and from accounts at other Fls and the ability to open deposit accounts are all attracting support.
Right now, many members of the millennial generation, which is particularly partial to mobile banking, are selecting their primary banking relationship. Fls effectively addressing that preference can capture these customers just as they approach the years during which they're most likely to need mortgages, car loans and other financial products, Data can provide into customers' emerging needs, so Fls that focus on improving digital channels today can potentially reap rewards for years to come.
Data and Analytics are the Engines of Customer Insight and FI Growth
Mr. Taveesak, noted that Digital banking channels give Fls access to customer data that is generated in real-time and is unprecedented in its amount and detail. That data can catalyze Fls to improve their results, but it also presents challenges, including combining information from disparate sources and detecting patterns in massive datasets. Therefore, Fls are likely to find sophisticated but easy-to-use analytics tools to improve customer experience and to compete with global banks who will master analytics capabilities.
The best analytics programs help Fls thoroughly understand their customers so they can design products and services and target them to the customers most likely to buy. These tools can also facilitate more efficient customer service in the increasingly Omni channel environment. For example, customers no longer have to repeat their problem to a call center agent after attempting to resolve it themselves online. Instead, the agent sees what the customer has done and can quickly clear up the issue. This level of service masters to customers, event those who love to use digital channels