AI – why banks are caught between a rock and a digital place

Banks’ efforts at digital transformation may not yet be on the mark in creating the experiences that their customers want, according to new research from Genpact. The survey of more than 6,000 consumers in the US, UK and Australia shows that customers want both the convenience of new technology and the personal service they’re used to with old-school banking – they want it all.

AI or human contact?
  • More than one in four consumers surveyed would be comfortable with a digital assistant such as Siri and Alexa (or a bank’s own service) to open a new account for them.
  • At the same time, 57% of respondents say face-to-face contact at the branch makes opening an account easier and satisfaction levels with human contact (face-to-face and on the phone) outranks customers’ experiences with mobile, webchat, text, and other digital channels.
Trust in question, loyalty elusive, and fraud a key concern

Consumers expect and trust financial institutions to protect their data, and they would consider leaving their banks if that trust is broken.

  • 55% cite a poorly handled fraud incident as the top reason for moving to another bank.
  • Given that 36% of all consumers surveyed report being a fraud victim at least once, there is a sizable base potentially up for grabs to competitors.
  • Other reasons for leaving banks are for better financial incentives (42%) and not having a quality digital service (31%).
Digital-only banks are closing in
  • 40% of 18-34 year-olds are willing to switch to a digital bank compared to 15% of the 55+ bracket.
  • All age groups polled trust traditional banks much more at fraud protection, with 74% expressing confidence in traditional banks vs. only 41% who say the same about fraud protection at digital banks.
  • For day-to-day communication, 18-34 year-olds are also five times more satisfied with mobile apps, and almost six times with text, whilst 11% percent  prefer to communicate with their bank via social media

When it comes to achieving ROI from technology investments, banks are caught between a rock and a digital place. Consumers want it all: the speed and convenience of new technology, and the human contact they get at the branch and on the phone. Loyalty is fleeting, and to encourage it, financial institutions must better understand what their customers want and need across all channels. Technology alone isn’t the answer.

Michael Menyhart, growth leader, Banking and Financial Services, Genpact.

Leave a Reply

Your email address will not be published. Required fields are marked *