IBS Journal February 2017
47
“THESE DAYS, PLAYING CATCH UP SIMPLY ISN’T ENOUGH”
In fact, websites are now the most popular way to carry out routine transactions, with 30% saying this is the main channel they use for this type of task.
If we narrow this down to look at specific generations, a more varied picture emerges. Hone in on a Millennial audience (ages 18-34) and mobile apps become the preferred channel to carry out routine transactions. 45% of Millennials who have a current/savings account engage with their banks via a mobile app several times a week, or more. If you look at gen Xers (ages 35-54) this drops sharply to 25% and for baby boomers, just 9%. The disparity across the age groups for this particular area gives us a sense of the challenge banks face in engaging different audience segments, with different needs. I believe that this is something they need to address head on as a matter of urgency; it’s clear that a ‘one-size- fits-all’ approach won’t work if they are to keep their customers happy.
It’s also interesting to note that just 1% of UK customers who have a current/savings account will communicate with their banks via IM or chat for tasks like seeking investment advice or seeking advice on bank accounts/ service needs. When customers require service that extends beyond making simple transactions, it seems they are more comfortable with in-person interactions (24% go in-branch to seek investment advice from a personal banker/advisor, 23% do so for advice on accounts/service needs). This suggests that banks have some way to go in building trust via these channels.
Customers of tomorrow
I think this is particularly relevant to Millennial customers, who are turning to their mobile phones and social media when engaging with customer service teams in other industries; for example, food delivery or retail. While these younger customers have less financial
responsibilities today, this will change in the future. Banks who cater to their needs and build trust across all channels now, could potentially stand to benefit from decades of loyalty from this digital-native group.
However, a personalised, trusted experience doesn’t just come down to technology. A significant proportion of all age groups still walk into a branch at least once every few months, if not more often: 70% of millennials, 75% of gen Xers and 73% of baby boomers. Particularly when seeking advice on investments and money management, the in-branch experience with a personal banker/advisor is used more often (24% vs. 7% for routine transactions).
With customers relying on multiple channels for service, banks need to gain a single view of each customer. By breaking down the siloes between each channel, and understanding the resulting customer data, they will ensure that engagement is meaningful and personalised at each touchpoint. This applies online and in-branch.
My takeaways
There is still a strong customer appreciation for a face-to-face interaction with a bank, which gives traditional players in the sector a big advantage. However, it’s clear that the banks who are listening to their customers and, in turn, aiming to create a more joined up, seamless customer experience are becoming leaders in the industry – and younger customers are leading the way to their doors, faster than ever before. So for those who have been slower to adapt until now, it’s an ideal time to use technology to blend the online and in-branch experience to meet and exceed the customer expectations today – and in the months and years to come.
www.ibsintelligence.com
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