digitally savvy customers in banking

Meeting the Needs of Digitally Savvy Customers in Banking

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According to EY, 40% of customers expressed decreased dependence on their banks and an increased excitement about what alternative companies can provide. Evidently, DBS Digibank, India’ first mobile-only bank has garnered 1 million new customers in a year. Also, mobile banking is the most preferred channel for CITI’s customers in the Asia Pacific. With almost 33,000 banking customers across 18 markets changing their behaviours and expectations about traditional financial institutions, there is no doubt that going digital is the way to go. As such, understanding the digital customers’ expectations will enable banks to enhance customer engagement and leverage this new digital opportunity.

  1. Customers want banking to be easy and consistent

For digital banking to be successful, the ease of accessibility and consistency are important for digitally savvy customers. Competition is fierce amongst banks offering digital services as 78% of digitally savvy customers would bank with a tech firm like Amazon or Google. Also, 66% are happy to share their personal data but demand faster, easier services in return. Increasing the ease of engagement would enable banks to boost the number of interactions customers have with them, offering greater opportunities for targeted promotion and selling. Moreover, engaged customers would translate into more data, which will be helpful for banks to understand their customers and craft up effective strategies in the long run.

  1. Customers want responsive customer service

Customers are quality seekers who are driven by service and trust. With the greater competition from alternative banking options, maintaining customer loyalty is crucial. According to Accenture, 49% of customers note that high-quality customer service makes them loyal to the bank. 80% of customers surveyed also states they would have stayed with a bank if their issue had been solved in the first instance. Effective customer service reflects a stable and secure bank, and this is especially true if it’s a digital one.

  1. Customers want great value from their financial products and services

Digitally savvy customers have high expectations from digital offerings by financial institutions. 43% of customers are willing to adopt new tools such as mobile apps for person-to-person payments and cut out the middleman in transactions to enhance their experience. Greater personalization and increased value will allow banks to have a targeted approach with their customers.

As customers have greater access to digital offerings from both traditional and nontraditional financial institutions, digital channels are no longer the key differentiating factor amongst the competition. For banks to remain relevant and attractive to digitally savvy customers, there is a need to provide a holistic customer experience that encompasses various digital touchpoints in the entire customer journey.