Custom Search

Wednesday, January 18, 2012

Digital banking set to gain preference among customers: Survey

Digital banking is set to overtake branch networks as the main way customers interact with their banks by 2015 mainly on account of younger generations’ preference to mobile and computer platforms for transactions, says a PwC survey.

The survey, the New Digital Tipping Point, conducted among 3,000 banking customers across nine developed and emerging markets, found that 70 per cent of respondents in India use internet and 56 per cent use mobile to purchase financial products.

Mobile banking is expected to follow a similar usage curve to internet banking, with China, India and the UAE currently leading its adoption,” PwC noted.

Overall, 69 per cent of respondents globally currently use the internet to purchase financial products, while 33 per cent use their mobile phones.

In terms of customer profile, Generation Y (people born in the 1980s and 1990s) leads the way, with 67 per cent of respondents saying that they currently use or are considering using mobile channels for banking.

The report said that most of the consumers are willing to pay more for digital banking services if they believe they offer convenience and value. It suggested that despite a strong demand for digital banking products from consumers, banks have been rather slow to respond to the digital innovations.

“...The majority of banks still only provide basic mobile and internet banking...Banks are clearly missing a trick if they don’t start to invest in their digital offerings and only see digital as a way to reduce costs services,” Stephen Whitehouse, retail and commercial banking partner at PwC, said.

Digital banking could prove a significant source of revenue for banks as most consumers are willing to pay as much as £10 ($15.29) a month for the service.

Social media notifications, an electronic wallet for loyalty cards and tailored financial services are popular draws for customers.

“The banks that provide a differentiated digital experience, with advice and relationship management elements tailored to the individual customer, will secure deeper engagement and more profitable relationships with their customers,” Mr Whitehouse said.

“The growth of digital has removed key barriers to market entry, including the need for large branch networks, customer inertia and brand trust. Because of this, banks need to consider strategic acquisitions or partnerships with digital innovators to secure their long-term position and market share,” he added.

The report suggested that incumbents in developing markets, where there is a larger share of unbanked consumers, would experience the greatest threat from new players if they do not improve their digital offerings.

0 comments:

Post a Comment

Popular Posts

 
Desi Google | A2Z Famous Quotes | What's Cooking America | Joke Site