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State of the Consumer Banking Experience Fresh insights for financial services marketers from a survey of 1,200+ consumers
State of the Consumer Banking ExperienceFresh insights for financial services marketers from a survey of 1,200+ consumers
OverviewFinancial services institutions are working to modernize their offerings and provide consumers with better mobile banking experiences.
However, as banks adopt mobile strategies, marketers are struggling to connect phone calls to the rest of the omnichannel customer journey.
We surveyed more than 1,200 people to better understand the impact marketing and customer experience have on consumers’ decision in choosing a financial partner.
STATE OF THE CONSUMER BANKING EXPERIENCE
About the studyRespondents: 1,285 United States residents 18+ who had taken out a loan of at least $15,000 in the past three years.
Recruitment period: October 3, 2016 to October 9, 2016.
Margin of error: 2.8%
Sample: The sample was provided by Market Cube, a research panel company, who surveyed respondents via email.
STATE OF THE CONSUMER BANKING EXPERIENCE
ContentsFor banks, omnichannel is the new normal 5
Calls are a key part of the decision making process 7
Experience matters 9
What makes a good experience? 11
The future of omnichannel banking 14
Conclusion 15
Contact 16
STATE OF THE CONSUMER BANKING EXPERIENCE
For banks, omnichannel is the new normalBanks need to think beyond digital, as offline interactions have a major impact on consumer decisions and trust.
Multiple modes of communicationWhen interacting with their banks, people use every channel of communication including mobile apps, phone calls, online websites, text or SMS messages, chatbots, in-branch visits, etc.
use at least two different channels during an average month.
use three or more channels to communicate with their bank in an average month.24+76+U 63+37+U76% 37%
75%of consumers say
it’s important or extremely
important to be able to
easily switch between
channels when interacting
with their bank.
Offline actions dominate loan researchConsumers list offline actions as their primary mode of contact when evaluating a financial institution.
CONSUMERS ARE CALLING
MULTIPLE BANKS, MULTIPLE TIMES
DURING THE LOAN RESEARCH PHASE.
Visit a
branch
Make a
phone call
Complete an
online form
Contact via
mobile app
Use online
messaging
Send an
Engage through
social media
N/A
38%
26%
16%
7%3% 3% 2% 5%
made at least one phone call.
made at least two phone calls.
made four or more phone calls.
16+84+U28+72+U74+26+U
84%
72%
26%
Calls are a key part of the decision making process65% of respondents said they were more likely to take out a loan from an institution they spoke with on the phone during the loan process; this increased to 73% when people took out a loan of $100K or more.
Loans are complicated; calling makes it easierPeople call during the loan research phase for two primary reasons:
called to get expert advice for or discuss a complex situation.
called to get a quick answer or to avoid filling out a web form.67+33+U 76+24+U33% 24%
STATE OF THE CONSUMER BANKING EXPERIENCE
Call length can be a good indicator of call qualityWhen it comes to taking out a loan, calls to financial institutions led to significant discussions:
Call length is even more significant when it comes to larger loans:70% of people who took out $100,000 or more spent at least five minutes on the phone with a bank representative; 33% spent more than 10 minutes.
THE BIGGER THE LOAN, THE MORE LIKELY POTENTIAL CUSTOMERS ARE TO CALL:
of calls lasted at least five minutes.
of calls lasted ten minutes or longer.
63% 29%
93%of people who took out loans
of $100,000 or more made at
least one call to the financial institution they ultimately
chose for their loan.
Experience mattersFinancial institutions must create good offline experiences or risk losing customers.
would be likely to choose another financial institution.
would write a negative review online.44+56+U 63+37+U56% 26%
A negative call experience can break a saleAfter a negative phone experience regarding loan consideration:
STATE OF THE CONSUMER BANKING EXPERIENCE
A positive call experience can make a saleAfter a positive phone experience regarding loan consideration:
Word of mouth recommendations are the most influential way survey respondents reported hearing about financial institutions, so this is a feedback loop that positively impacts the bottom line.
would be likely to choose that institution
for their loan.
would refer someone to the same lender.
would write a positive review online.
would write positive comments
on social media.
43+57+U 49+51+U 63+37+U 72+28+U57% 51% 37% 28%
What makes a good experience?People want a consistent omnichannel experience and personalized recommendations.
Know your customer before picking up the phoneMore than half of respondents said these two offenses had a negative impact on their decision to choose a loan institution:
said being transferred around to multiple representatives.
said having to restate their identifying information each time they were transferred.37+63+U 44+56+U63% 56%
ON THE FLIP SIDE:
84%
80%
said that being
immediately routed
to the right rep had a
positive or extremely
positive impact on
their decision.
said that it had a positive
impact on their decision
when the representative
immediately knew their
relationship to the bank
and account history when
they picked up the phone.
In branch Over the phone Via email During online chat
with a personThrough
social media
During online chat
with chatbot
59%54%
34%
25%
15% 13%
Personalization matters, especially during offline interactionsPersonalized service is vital for in-person and phone conversations; consumers are more willing to forgive impersonal recommendations that come via digital means.
When asking people to express when it was ‘very important’ for a financial institution to provide personalized service and recommendations, respondents answered:
of respondents said that seeing
i ital a s that con icte ith a conversation they had on the phone
had a negative or extremely negative
impact on their decision to take
a loan from that bank.
45%
LEARN MORE
Consumers build relationships offlineWhen asked which method of communication is the most effective for building a relationship with their bank, 75% selected an offline method:
In branch Phone call Email Online chat
with a personSocial media Chatbot Other
44%
31%
10% 8%4%
1% 1%
STATE OF THE CONSUMER BANKING EXPERIENCE
The future of omnichannel bankingThe future is clearly mobile, but for banks, human interactions still matter.
When interacting with their banks, people use their banking app most often
of people said they have used their bank’s
app at some point.
of people sign on to their bank’s app once a
week or more.
of millennials use their banking app at least
once a week.
20+80+U 45+55+U 40+60+U80% 55% 60%
PEOPLE GO OFFLINE FOR MORE COMPLICATED OR SENSITIVE INTERACTIONS
Mobile apps are consumers’ primary
mode of interaction for checking
a balance or transferring money,
ut res on ents sai an o ine interaction—either calling or going
in person—is their primary form of
communication for:
Reporting a fraudulent charge
Clarifying a statement
Evaluating a loan
Opening an account
For sensitive information, people want to talkAs banks adopt new technology for customer interactions like chatbots, they should keep in mind that consumers are only comfortable using this type of automated customer service for basic functions. For anything more complicated (e.g. clarifying a confusing statement or evaluating a loan), consumers want a conversation with a person.
would be uncomfortable or very uncomfortable discussing fraudulent
banking charges with a chatbot.
are comfortable or extremely comfortable discussing fraudulent charges with a bank representative over
the phone.
are comfortable talking over the phone about
loan options.
would be comfortable talking to a chatbot about loan options.
51+49+U 21+79+U 19+81+U 57+43+U49% 79% 81% 43%
MILLENNIALS TOO, WANT TO HAVE A CONVERSATION WITH A PERSON, NOT A BOT.
20% of millennials said they would
use a chatbot assistant if their bank
o ere it com are to of o erall customers.
ConclusionBanks that want to keep up with the demands of today’s consumers need to think beyond digital. Apps and websites are important, but it’s a mistake to invest in these properties at the expense of voice conversations. Talking with representatives in the branch and over the phone builds trust, confidence, and long-lasting relationships. This is critical for consumers when choosing an institution from which to purchase large-value loan products and safeguard their finances. Financial institutions can improve these experiences by focusing on creating seamless and personalized experiences offline, and connecting interactions like phone calls to the rest of the digital customer journey.
STATE OF THE CONSUMER BANKING EXPERIENCE
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