Digital bank’s goal: “My best friend”

While consumers value banks for providing a secure place for storing and moving money and data, there are other value-added services that they want but are not currently receiving, including identity and data protection, rewards, wealth building, personalization, and cash management, according to a new CGI survey.

Evolving consumer expectations are driving the need for accelerating banks’ digital transformation programs, according to CGI analysis. Online banking has become the most preferred service channel, regardless of age, income, location, or bank type. Without action, banks may be forced into being a wholesaler by their own customers while faster movers and innovators will be benefiting from consumer loyalty and new revenue streams.

“Tomorrow’s digital bank will need to continue to build on the bedrock business of financial storage, payments, and protection while also becoming a full-fledged ʻfinancial well-being’ services provider,” says Penny Hembrow, vice-president and global lead, financial services, CGI.

Leading banks are focused on delivering a highly convenient, secure, and trusted digital experience that will differentiate them not only from other banks but from new market entrants as well, according to Hembrow.

She added that these institutions “are also embracing the concept of ʻmy digital best friend’ from industries like retail and communications and combining it with smartphone and face-to-face support to deliver what financial consumers are expecting today and in the future.”

What’s on consumers’ “want list”

The following are among consumers’ priorities, and a notable point is how many consumers surveyed would pay extra for them:

• Protection. Protection is the top desired service, as consumers become more aware of increasing fraud in the digital world.

One in four consumers would pay a premium for more identity and data protection.

• Wealth building. One in three consumers would pay a premium for wealth building services.

• Personalization. Only 10% of respondents believe it is not important to be known by their bank, and nearly one in five (19%) are willing to pay for their bank to know them better.

• Cash management. Real-time facilitation of cash, liquidity, and management of cash flows are expected by 65% of consumers across all countries, ages, incomes, and bank types, together with real-time balances.

• Consumer data. Over 80% of consumers are open to banks using their basic information for improved services or products.

• Channel preference. Online is the preferred channel choice for consumers, regardless of age, income, location, or bank type, with only 10% of consumers not using their banks online service “unless they have to.”

• Future banking models. Respondents predict a highly digital banking environment in the future with all banking done digitally (37%), through smartphones (36%), or, alternatively, using fingerprint recognition technology (30%).

• Openness to new players. There’s an openness to new digital technologies with 57% of respondents stating they would trust PayPal for protection services and 46% stating they trust online investment sites and personal financial management tools for wealth building services and cash management.

• Rewards. Reward programs are in high demand, with 70% of consumers saying rewards are important, and only 7% saying they are unimportant.

Download CGI’s Financial Consumer Demands For Tomorrow’s Digital Bank report