How to Make Consumers Feel Better About Banking
Deidre Campbell, Global Sector Chair for Financial Services at Edelman, showcases marketing data about the financial industry. According to the data, 69% of consumers think that when a financial institution asks for data, they're just asking for their own gain. In fact, of all the industries surveyed by Edelman, financial services does the worst on this front. Consumers don't trust them. As we talked about in a post this week on gathering data for the benefit of account holders, it's a situation that desperately needs to change.
70% of Americans prefer digital to branch for account opening
Finextra cites data from Javelin Research showing that nearly 75 percent of consumers would prefer to open a checking account digitally versus in a branch. Unfortunately, many institutions (and regulators!) make the digital sign-up process more complex than it needs to be...
BBVA Chairman Leads Tech Push to Fend Off Google, Facebook Threat
Bloomberg News recounts how stridently BBVA is focused on growing their digital banking presence in light of competitive pressure from Amazon, Facebook, Google, and other newcomers to the space. The article also cites a study from PwC that says that more than half of CEOs share this same worry. To prepare for these future competitors, BBVA has amped up their digital strategy, expecting to see the results pay off in coming years.
User Research for Improving the Customer Experience
Victor Yocco of BAI shows the importance of providing a user experience that can wow account holders.
"Retail banks need to create digital experiences (e.g. online and mobile banking) that build customers’ trust and increase their perceptions of transparency. According to Forrester, companies providing a superior user experience generated: 14.4% more customers willing to purchase their product; 15.8% fewer customers willing to consider doing business with a competitor; and 16.6% more customers likely to recommend their product or services. "
Americans crawl back to the big banks that burned them
Main Street's Brian O'Connell shows that consumers are reluctantly returning to the big banks. These larger players have started to raise their poor customer satisfaction scores by offering more services (particularly digital services) and by making those services more convenient. Competitors will have to find a way to out-innovate the behemoths if they want to stay ahead.
Is the Fintech bubble about to burst?
Chris Skinner says that critics who worry about a fintech bubble are misguided because fintech isn't a fad — it's the way banking will be done from here on out. Digital is the core of the future banking system, and it's here to stay. As Skinner shows in his post, the value exchange ecosystem is completely different in the digital age.