Consumers Threaten Revolt If Banks Don’t Meet Their New Demands

Research reveals the major forces that are shaping what consumers expect from their banking providers. People are more demanding than ever, and the table stakes keep rising. Can banks and credit unions keep up with today's uncompromising consumer?

By Jeffry Pilcher, CEO/President & Publisher of The Financial Brand

Not long ago, consumers were conditioned to make sacrifices. In any product category, they were accustomed to choosing between speed, quality, price and service; they would have to settle for only one or two of those things. That’s not the case any more.

Banking consumers in North America say they want it all: deals, discounts, convenience, relevance and a seamless, multi-channel experience balancing both digital and face-to-face interactions. Consumers may be willing to share their personal data with financial institutions, but only if they get what they want in return.

These findings come from an Accenture study encompassing over 4,000 consumers in the United States and Canada. Results from this multi-year research covering consumer banking attitudes and behaviors show that consumers are laser-focused on the value (or lack thereof) that they receive from their banking providers.

“Differentiation based on price or products and services is a zero-sum game for banks,” says Accenture. “They get trapped in an endless loop of one-upping and matching each other on discounts and product offers where no one wins. Brands ultimately become interchangeable in customers’ eyes.”

The way out, according to Accenture, is to compete on service — to provide superior service consistently across channels. “While some customers will always be driven by the deal, others are willing to pay for better service and ease of doing business. For example, consumers who applied for a loan in the past year said they would pay more if they received end-to-end customer service through the loan process. Delivering banking value means mastering the delicate balance between the tangible and intangible, the savings and the service.”

Robo-Advice Is Welcomed

In the Accenture study, consumers said they are intrigued by computer-generated advice. This style of “robo-advice” automates recommendations and suggestions (think: “next best product”) with insights based on profiles built from digital banking behaviors, questionnaires and advanced algorithms. Robo-advisors have already gained significant traction in the wealth management industry, but Accenture says this trend is also picking up in retail banking, creating an opportunity for banks to deliver additional value — and connect with — new customers.

A surprising 46% of consumers are willing to bank using robo-advice. Consumers welcome robo-advice from banks to determine how to allocate investments (79%), the type of bank account to open (74%) and for retirement planning (69%).

“Consumers will continue to dictate how, when and where they want to interact, and banks have an opportunity to use intelligent automation and robotics to simplify and improve the customer experience,” explains David Edmondson, Senior Managing Director of Accenture’s North America Banking practice. “Successful banks will strike the right balance between human and machine interaction to elevate their role in customers’ lives beyond simple transactions and become a go-to resource.”

Branches Still Relevant

“The branch will remain relevant because it is the place where consumers can connect with their banks’ human advisors.”
— Accenture

Findings from the study indicate that “digital banking” is not an all-or-nothing proposition. While online banking remains the dominant channel in terms of both in terms of frequency of use and preference, the survey found that the branch remains popular. Consumers may be receptive to robo-advice and self-service/digital channels, but they also crave face-to-face human interaction ...

To read the rest of the article regarding the competitive importance of predictive analytics,  go to the complete article here ...

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