Consumer behavior is changing. Nowadays, most of us are used to shopping online, watching films and listening to music on digital platforms, working remotely from home, and even interacting with medical professionals via video-consultations. These ongoing changes have been accelerated due to the current global pandemic. Banks are not being spared from the consequences of these changing habits. In the ocean of possibilities, will they sink or swim? Accenture’s 2020 Market Pulse Survey measured current experience and future expectations of banking customers in Luxembourg. Based on the findings, this article provides a few recommendations that can help banks to master the waves of change.
Provide consistent personalized support across all channels
While we have seen the increased appetite of consumers to reach out to their bank remotely, our survey highlights a serious weak point applicable to all banks: despite the more important role call centers had this year, they receive a negative Net Promoter Score (NPS) of -10 points. NPS measures customer experience by rating their likelihood to recommend a company, product or service. For our survey, respondents were asked, on a scale of 1 to 10, "would you recommend your bank?" for the overall service, branch, web, mobile, and call center. When asked which channels they feel more inclined to use to connect with their bank today (and after COVID-19), the first preference is phone (51% of respondents), followed by email (48%), via chat (18%) and video call (16%).
51% of consumers feel more inclined since the COVID-19 crisis to use the phone for advice and general questions to their bank.
48% of consumers feel more inclined since the COVID-19 crisis to use email for advice and general questions to their bank.
If remote channels are becoming more and more important, the branch still remains relevant. For years, Luxembourg banking customers have indeed preferred to meet their advisor face-to-face in a branch. A positive branch experience is still one of the most important reasons for staying with their bank for 42% of respondents to our survey. However, this year’s exceptional circumstances have shown that physical locations could still be optimized and adapted more to the new interaction model. It could explain the important drop in NPS for branch experience (down from 14 to 5 points this year).
To meet customer expectations, banks not only need to be available at a time and place that is convenient for them, but also to provide consistency and continuity across the different channels their customers value and want to use. By connecting the dots across these channels, banks can demonstrate that they are making an effort to know their customers well and care about the information they have already shared.
Keep the positive digital momentum going
Consumers are indubitably becoming more digital-savvy – and banks are managing to satisfy their needs. Customers not only accept more virtual interactions with their bank, they also expect them to be offered as a standard.
An easy to use mobile app is the main reason to stay with their bank for 37% of respondents.
This year’s NPS for mobile and web also indicates a high level of contentment among consumers, who would recommend their bank to friends and family based on their mobile experience (score of 17) and their web experience (score of 20). Also 87% of respondents are satisfied with their daily digital banking and 85% are satisfied with digital onboarding.
So, what can banks do to stay on top of the rising wave of digital? Our survey shows that security and transparency score high among consumers. Seventy-two percent of respondents would trust their bank even more if they knew it was taking special care of its data and cybersecurity, while for 78%, transparency on the part of bank advisors when offering them new products and services is a key element of building trust.
Going above and beyond traditional banking services
Variety is the spice of life, also for banking customers, who value a comprehensive and competitive portfolio of products and services at their bank. However, only half of the respondents are satisfied with proactive offers from their bank, which makes the relationship fragile. One in four respondents would consider leaving their current bank for a competitor that proposes a (more attractive) product or service.
This is where beyond banking services can make the best players stand out in the ocean of possibilities.
For example, banks can play a more dynamic role in helping their clients achieve financial wellbeing: 30% of respondents would be interested in receiving personalized advice on their fiscal situation and 23% in receiving personal finance advice. For these services, their bank would be the first choice of provider for the majority of consumers.
Consumers are expecting more advice and help from their bank in other areas of their lives such as car or home financing services. And there is also interest in beyond banking services such as home maintenance (22% would be interested).
This year’s Consumer Banking survey shows that consumer behaviors are evolving. Today, banks benefit from high consumer loyalty and satisfaction. To remain their trusted advisor in the future, they should focus on providing seamless customer service, investing in digital offering and exploring services beyond traditional banking.
Find out more in the infographic summary here.
For deeper insights based on our survey, feel free to contact Adrien Kirschfink
Press release by Accenture