CommPRO.biz Editorial Staff

Research from ForeSee Experience Index (FXI): 2017 Banking Report revealed that while CX is not a top reason to select a bank, the digital customer experience is a crucial retention tool and is a top reason people stay with a bank. 

Until switching banks is as painless as switching cell phone providers, at least 21% of customers feel like they’re being held captive by their current bank. And despite the growing popularity of online banking, nearly half (49%) of customers still want access to a physical branch. These are just some of the key findings from a newly released banking report conducted by ForeSee, a leader in Voice of Customer (VOC) solutions.

Other key findings of the report include:

Branches still matter: Nearly two-thirds (61%) of customers start their journey in a digital channel (desktop and mobile web) when opening a new account. Yet, more than half of those customers (59%) who started their journey digitally end up finishing at a branch location.

Banks rely too much on captive loyalty to retain customers: Only 38% of bank customers said they would definitely consider their primary bank when in the market for new services. Coupled with the 21% that aren’t switching banks due to concern about the consequences of switching (e.g., missed payments, etc.) , that is a considerable percentage of customers held captive.

Younger customers are less loyal: One-fifth of Gen Z consumers have already switched banks at least once in their short lifetime, and over a quarter of Gen Z banking customers would switch banks if it were as easy as switching cell phones.

Customers want more fintech: On average, 53% of people want more fintech services offered or integrated through their primary bank. And younger groups are even hungrier, with three-quarters of Gen Z (76%) and millennials (70%) looking for more such fintech services.

“The banking industry is being reshaped by fierce competition, notably from fintech companies that offer everything from payments to investing, often at a lower cost and with greater perceived convenience, “ says Jason Conrad, Vice President and author of the FXI: 2017 Banking Report. “But our research confirms that customers still want face-to-face interaction, putting the onus on retail banks to deliver omnichannel efficiency while balancing the needs of key customer segments. Measuring CX is the first step towards managing it.”