Survey: Consumers Want Financial Recommendations from Banks
Since the advent of online banking, it’s been easier for customers to check their balances, make transfers, and conduct other transactions from their computer or smartphone. However, a new survey highlights the fact that banks could be doing more with their digital platform to please customers.
According to a Sopra Steria and IPSOS report, nearly 70% of banking customers want their institutions to provide more personalized financial recommendations that can help them save and grow their money. Furthermore, only 26% said they were totally satisfied with the level of personalization offered by the digital tools offered by their banks. Additionally, 41% of respondents felt as though their banks didn’t want to help them to earn more money.
As for what other types of services consumers would want, three-quarters said they’d be interested in a money-earning loyalty program for their credit card. Meanwhile, two-thirds would want tools that offer day-to-day money management recommendations. This does include overdraft risk alerts, which is something that a growing number of institutions do offer (although they may not be as robust or personalizable as some consumers might desire).
Of course, as one might expect, digital banking on the whole remains immensely popular among consumers. In this survey, 56% of respondents said they frequently used their bank’s mobile app or website. More than one-quarter of those surveyed that they check their balances daily while 11% check their account two times per day or more.
Commenting on the report’s results, Sopra Banking Software CEO Eric Bierry said, “Banks that are willing to prioritize personalized financial recommendations over some of their other digital initiatives are more likely to acquire new customers and retain existing ones.”
Beirry went on to note the advantage that traditional institutions have in this aspect, stating, “Banks have massive amounts of data about customer banking trends and behaviors, giving them an obvious competitive edge over emerging FinTechs and neobanks. While banks see these digital challengers as their biggest competitors, often their most immediate threat is other traditional banks who transform quicker—or better—than them, to meet actual customer demand.”
As Bierry notes, although big banks likely have the means of crafting better tools for consumers, it’s long been FinTech startups that have taken up the mantle of more personalized financial experiences. This includes neobanks tailored toward certain niches, aggregation tools that allow consumers to view their balances in one place as well as automate transactions, and even roboadvisors that help investors create diversified portfolios. In turn, this report once again highlights the opportunity that exists for FinTechs and big banks to work together to create better tools for consumers. While it may take some time for such offerings to make it to market, hopefully consumers will soon be able to find the tools they seek and improve their finances as a result.