Consumers highly value online banking, and those that prefer digital services use online banking frequently.

But a recent report published by Bank Administration Institute (BAI) and SAS claims banks have not been keeping up with the digital demands from customers.

The report found that 40% of respondents use online banking at least five times a month, with about 22% use mobile banking just as much. And though satisfaction varies by bank size, in general more than 40% felt neutral or worse about mobile banking, with more than 20% feeling the same about online banking.

More than 40% of respondents felt neutral or worse about mobile banking(Source: diginomica.com)

The survey also indicated that millennials are hardly loyal to their financial institutions. According to survey results, 38%t of millennials ages 18-20, nearly half of ages 21-24 and 40% of ages 25-34 indicated they would switch to a new financial institution if it offered innovative products and services.

On the positive side, dissatisfaction may indicate more room to capture new market share, especially with millennials. These young adults are just selecting their primary banking relationships. And they’re especially partial to mobile.

Furthermore, consumers appear to be relying on digital banking services to meet their financial goals. Nearly two-thirds (66%) of consumers said personal financial management tools are important digital offerings from their banks, according to a separate ATKearny survey.

Taken together, the trends point to consumers wanting and expecting financial institutions to learn their preferences, the way online retailers do, and to go one step further toward understanding their goals.

By attracting millennials today, financial institutions can solidify relations with them as they approach the years when they’ll need more sophisticated financial services.

Even for those customers who prefer digital channels, personal service matters. Nearly half of customers ages 21-24 believe high-quality personal service is more important than financial expertise. Those numbers dip only slightly in subsequent age ranges.

While many customers prefer digital, they are not using it exclusively. They may visit a branch once, pay bills on the website, and deposit checks via mobile. The personal relationship can’t get lost across channels. According to the survey, the financial institution that creates an ideal customer service experience in an omnichannel environment will win.

In a best-case scenario, customers don’t have to repeat their problem to a call center agent after attempting to resolve it themselves online. Instead, the agent sees what they have started online and can quickly clear up the issue.

“The only way to provide the services customers increasingly demand across all channels is by applying advanced analytics,” said David M. Wallace, global financial services marketing manager at SAS. “Analytics enables banks to combine data from wherever a customer interacts with them – online, in store or mobile – to create a clearer picture of each customer. That view makes it more likely that they can keep current customers and attract new ones.”

Telecomasia.net