youbiquity finance 2014 - ayava on consumers, channels and changing behaviours in retail financial...
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Some financial services providers are embracing the explosion in the number of channels available for interaction with customers. Others are unsure and holding back. One thing is clear though – there has never been a better time to engage with consumers, whether for banking or insurance products. Much has happened over the last 2 years: smartphone penetration has risen from less than 30% to over 60% in the UK, voice recognition services have been used by half the population and video conferencing is now commonplace. The new research has been undertaken with 2,017 consumers across France, Spain and the UK. The sample was taken online, but weighted to be representative of the public in each of the three markets. Enjoyed this whitepaper? Read more here:http://www.globalservices.bt.com/uk/en/industries/insurance/about_bt_for_insuranceTRANSCRIPT
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Youbiquity Finance – 2014Consumers, channels and changing behaviours in retail financial services
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Introduction
Summary
A new era for banks and insurance providers
Youbiquity Finance: offer all the channels that consumers want to use
Use social media to build customer engagement in finance
Drive ease with supported self-service
Re-shape the phone channel to deliver answers and relationships
Consider biometrics for speed and security
Build branch appeal to generate dialogue
The UK consumer
The French consumer
The Spanish consumer
Conclusion
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Contents
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Some financial services providers are embracing the explosion in the number of channels available for interaction with customers. Others are unsure and holding back. One thing is clear though – there has never been a better time to engage with consumers, whether for banking or insurance products.
BT Global Services and Avaya wanted to update the Youbiquity Finance research completed in 2012 and to provide something to help organisations understand consumers, financial services and the changing marketplace.
Much has happened over the last 2 years: smartphone penetration has risen from less than 30% to over 60% in the UK, voice recognition services have been used by half the population and video conferencing is now commonplace.
The new research has been undertaken with 2,017 consumers across France, Spain and the UK. The sample was taken online, but weighted to be representative of the public in each of the three markets.
The research, data and views in this report have been prepared in good faith but BT, Avaya and Davies Hickman Partners do not accept responsibility for any actions or otherwise taken by those acting on the recommendations, advice and content contained in this report.
Introduction
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Summary
In two short years, the average number of channels used by consumers to contact their financial service providers has grown from 4.3 to 6.2, an astounding 44% increase. There has rarely been a better time for banks, credit card and insurance companies to use omni-channel strategies to engage with their customers.
The growth is partly driven by the rapid expansion in mobile banking and apps, but the data shows an increase in consumers using website FAQs, branch self-service machines, web-chat, social media and other channels to communicate with providers.
Going forward there are opportunities for financial services providers to improve ease, when customers want to save time, but also to elaborate when customers want to invest time to ensure they make the right decision about their products and services.
“Make it easy for simple queries and transactions when I want to save time but elaborate and provide more information to help me make the right decision when I want to invest time…”
The average number of channelsused by UK consumers to contact financial service providers in the past 12 months
2012
4.3
2014
6.2
52% of consumers say they buy more when it’s easier(a 48% increase on 2012)
69% say they use the Internet for simple transactions, while going to a branch or phoning for complicated issues
77% of consumers say it is important to have a phone number on each web or app page of financial services providers (70% an e-mail, 44% a web-chat facility and 27% video-chat)
However, 63% say they expect to have to wait to get through on the phone
62% want one easy-to-remember phone number for their bank
2 in 3 would like to use voice biometrics for ID&V
2 in 3 would like to use web-chat because they can keep a record of the conversation and they can be shown information, but only 41% feel confident sharing their personal data in this way
Video-chat is of growing interest to consumers, with the benefits identified as:- 61% would not need to make an appointment- 60% would be served straight away- 50% would have better relationship with their financial services providers
2 in 3 consumers describe the bank branch as being ‘cold and unwelcoming’ and would like improvements such as:- Free Wi-Fi (49%)- More knowledgeable staff (40%)- Bookable online appointments (35%)
1 in 10 follow their financial services provider on social media platforms such as Facebook, Twitter, Google Plus, etc. but 1 in 3 say the updates are irrelevant
1 in 4 consumers would like to communicate with their financial services providers using social media platforms
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There has never been a better opportunity for banks and insurance providers to connect with their customers. Fast growth in the use of new channels is creating opportunities not only for improved ease of service, but also for more elaborate and richer interactions – ultimately leading to better relationships.
Some banks and insurance providers have begun to take advantage of these opportunities:
The average number of channels used by consumers to contact their financial service providers in the previous year has grown from 4.3 to 6.2 between 2012 and 2014
Online personal financial management tools are now being used by 34% of consumers
The opportunity for financial services providers is no longer about choosing between full service or self-service, this channel or that channel. It is about meeting consumers’ needs at two fundamental interaction levels:
1. Ease – Making everyday interactions fast and simple2. Elaboration – Creating content, insight and answers that help customers make the right decisions
The benefit of doing so will be to drive Emotional Connection, connecting with consumers at a human level, to support their decision-making, and build personalised relationships.
A new era for banks and insurance providers
Ease Elaboration
Emotional Connection
Communication should satisfy consumers’ need for ease and elaboration to deliver
emotional connection
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There is an urgent opportunity to do more in the face of changing customer behaviour, which threatens long-term revenue growth. BT and Avaya have previously identified the ‘autonomous customer’ – the consumer who is turning away from brands to seek advice and information from other sources. This behaviour is magnified in financial services:
Consumers trust in their financial services provider is low in the UK (34%) and Spain (45%) but much higher in France (78%)
52% say financial services providers would not mind if they switched to another provider
The proportion of British consumers who say they have a strong relationship with their bank has fallen (UK 34% to 29%).
61% of UK consumers would be interested in banking services from alternative suppliers such as Tesco, John Lewis, Amazon and Apple
Very few in the UK know the name of one person at the bank where they have their current account (France 58%, Spain 59% and UK 24%).
Most importantly, there has been a huge increase in the number of consumers saying they turn to other sources of advice than banks for financial advice (Spain 36% to 49% and UK 43% to 54%).
Powering a new financial services industry
My bank would not care if I switched
Difficult to get independent advice about money I can trust
My bank puts customers at the heart of their business
I trust financial service providers to treat me honestly and fairly
I am more likely to get advice about finance from other sources than my bank
I have a strong relationship with my bank
Banks have improved their services since the crash
37
51
28
78
35
51
24
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/
/
/
/
/
/
/
/
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48
36
40
/
45
64
32
45
43
43
23
/
/
/
31
49
34
/
52
49
19
34
54
29
21
To what extent do you agree with the following statements?
20142012 2012 2014 2012 2014
Financial services, consumers and relationships
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There are many levers financial services providers can use to retain and win customers, including better rates or prices, superior products and better distribution.
Our research shows that consumers themselves rate customer contact as a great route to stronger revenues and relationships.
What should financial services providers do to improve customer ease, to elaborate when consumers want it and ultimately build the emotional connection needed to drive customer behaviour? Our research points to some clear actions.
How do banks and insurance providers win the hearts of consumers?
Which would make you feel ‘warmer’ towards your bank?
Call centre that are easier to get through to
Having a named individual to email or phone
Clear communication
Faster email response times
Call centres with more knowledgeable staff
Friendlier staff
Instant web-chat interactions
Email with info tailored to my needs
Websites with better info
Marketing aimed at me
More social media
51%
48%
39%
39%
36%
32%
24%
23%
23%
8%
5%
There are many levers financial services providers can use to retain and win customers, including better rates or prices, superior products and better distribution.
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44% increase in the number of channels consumers are using to contact financial service providers
Youbiquity Finance: offer all the channels that consumers want to use
The average number of channelsused by UK consumers to contact financial service providers in the past 12 months
2012
4.3
2014
6.2
FAQs website Up 27% 34% Up 17% 34%Smartphone App Up 24% 34% Up 16% 23%Call centre Up 20% 46% Up 15% 57%Smartphone browser Up 20% 28% Up 11% 14%Branch – self-service machine Up 14% 47% Up 18% 55%Secure message Up 13% 20% Up 8% 21%Internet banking Up 11% 63% Up 8% 68%E-mail Up 10% 47% Up 15% 31%Facebook Up 9% 19% Up 5% 8%Text message Up 9% 18% Up 6% 12%Twitter Up 8% 11% Up 3% 4%Web-chat Up 6% 10% Up 10% 11%Branch Up 5% 66% Up 4% 81%
Which of the following channels have you used to communicate with your bank in the past 12 months? increase
2012-2014 2014increase
2012-2014 2014
Across the three markets of France, Spain and the UK it is the Spanish who are more likely to have used newer channels such as Facebook, Twitter and smartphone apps. French and
British consumers still rely on the phone and branch despite the take up of online and mobile banking services.
Leading financial services providers are changing their strategies, to focus on where consumers are spending their time – whether that’s Facebook, their smartphone, a new shopping centre or their route home from work.
In two short years, the average number of channels used by consumers to contact their financial service providers has grown from 4.3 to 6.2, an astounding 44% increase.
This is partly driven by the rapid growth in mobile banking and apps, but the data shows an increase in consumers using website FAQs, branch self-service machines, web-chat, social media and other channels to communicate with banks.
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Consumers across France, Spain and the UK are using multiples of channels to communicate with their bank
ATM/cash machine
Face to face in branch
Internet site/internet banking
Use of a self service machine to deposit a cheque or cash
Phone call to a call centre
Phone call to your branch
FAQs on internet site
Smartphone apps
Write a letter/send forms
Secure message via your provider’s website
Smartphone web browser
Phone call to a call centre in another country
Which of the following channels have you used to communicate with your bank in the past 12 months?
Phone call to an automated or IVR phone service
Send text/SMS message
Web-chat conversation online
Google plus or another social networking site
Video conferencing
Online forum for customers of the financial services website
Online forum run by customers on the internet
None of these
89
77
63
66
37
66
41
22
22
35
31
17
8
15
15
10
8
8
5
6
5
6
3
3
4
90
66
63
47
46
56
47
34
34
19
20
28
9
8
18
19
10
10
11
7
8
6
7
6
4
94
81
68
55
57
35
31
34
23
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21
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17
12
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Today’s consumers are using a wide range of channels to purchase new financial products. For researching products and services the Internet dominates, but face-to-face meetings and phone calls continue to play an important role
in the final sale. In fact, the face-to-face channel is the most popular for all purchases, except general insurance, across the three markets.
Sales success in banking and insurance, person to person contact
Opportunity for banks and insurance providers – Consumers want a wide range of channels for ease. Offering new channels and integrating them so that consumers can move seamlessly from one to the other, is a priority.
Had a web-chat conversation
3% 3% 6% 3% 4% 9% 1% 0%
Used a price comparison website 7% 10% 11% 14% 43% 14% 16% 13%
Phoned the financial services provider 24% 18% 39% 20% 36% 35% 21% 24%
Filled out a paper application form
25% 21% 24% 18% 11% 26% 18% 18%
Had a face to face meeting 44% 34% 54% 51% 21% 44% 46% 58%
Which of the following did you do whilst in the process of buying/switching to this product/service? Total – France, Spain and UK
Current account Credit card Mortgage
Life insurance
General insurance Pension
Savings product
Health insurance
Used the financial services provider’s website
23% 23% 25% 19% 27% 37% 33% 26%
Applied for a product online
20% 29% 14% 18% 41% 16% 28% 18%
Applied by post 7% 5% 10% 8% 5% 7% 4% 16%
Read a review by a journalist or expert 3% 3% 1% 3% 5% 16% 4% 0%
Contacted a third party 2% 2% 18% 4% 8% 7% 3% 26%
Read an online review by another customer 3% 3% 4% 2% 6% 2% 4% 5%
However, this does vary by country and in the UK the face- to-face channel is less prevelant than it is in France and Spain.
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Use social media to build customer engagement in finance
1 in 10 follow their bank on social media
With 55% of consumers saying banks focus too much on self-service it’s clear that financial services providers need to be about more than just ease of use. Being efficient and automated means providers run a risk of becoming forgotten by customers. In short, the need for elaboration – to make financial services more interesting, engaging and relevant – is also important for consumers today.
Consumers are using a range of digital channels and social media more regularly than before, so building interesting and elaborated content provides a great opportunity to create emotional engagement. Already we have seen that 34% of consumers use online personal financial management tools.
Go where consumers are spending their time
A growing range of mobile-friendly social media is increasingly engaging the public consciousness. Since 2012 the giants of social media – YouTube, Facebook and Twitter – have been joined by Google Plus, Pinterest, Snapchat, Tumblr and others.
SMS
Accessing websites through smartphone
Accessing social media through smartphone
Online banking
YouTube on PC
Google +
Apps on your smartphone which link to location based websites
YouTube on smartphone
Web-chat conversations
Smartphone banking
Writing online reviews
Other social networking site
Snapchat
Which of the following do you use once a day?
41
51
24
16
23
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7
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6
8
2
5
2
1
1
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15
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32
20
26
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10
6
6
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3
3
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42
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28
18
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12
9
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4
3
Social media consumption is every day
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Financial services providers turn to social media
Making financial services more engaging
More than 1 in 10 consumers follow their bank and/or insurance company on social media – 9% Facebook, 6% Twitter and 4% other platforms. In Spain the figures are 17% for Facebook and 10% for Twitter. Around 1 in 5 say they do so because social media is where they’re spending much of their time.
Looking to the future, high numbers of consumers say they would welcome interaction with providers using social media.
With 30% of users saying they find social media updates from banks and insurance companies irrelevant, there is clearly room for improvement. There are key elements that drive interest.
Personalised updates
Information which is relevant to consumers and their money today
Special offers or invitations
Providing a forum for like-minded customers to exchange thoughts
Proactively providing useful information
Sharing social media profiles with financial services providers
40% of Spanish consumers say they would be happy to share their Facebook profile with their bank if it meant they had better information, compared to 1 in 5 British and French consumers. While there will be concerns about privacy, this may help address the complaint by 46% of consumers that ‘financial services providers make no effort to get to know me’.
49% would like to share their location with their bank using GPS to get special offers and discounts, taking advantage of financial services providers’ wealth of data around behaviours.
Some consumers would be interested in personalised videos, which are e-mailed to customers with relevant information, and offers designed to be watched on smartphones, tablets or desktop.
Customers are open to a wide range of proactive and personalised messaging which could be provided through social media and other channels. Useful information to improve ease of use, combined with detailed elaboration on more complex financial matters could valuably increase customer closeness.
1 in 4Would like to communicatewith my bank in the future
Online forum for customersof the financial provider
Online forum run by customers
Google+ or other social network
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Finding the best way to engage customers in dialogue
When I go overdrawn on my account
When an amount is paid into my account
When an amount is paid out of my account
When the interest rate changes
When my tie in period is coming to an end
When a better deal is available
When there has been suspicious activity on my account
When my card is being cancelled for security reasons
When would it be useful to recieve push or othernotifications from your bank?
2012 20142012 2014
51 69 52 63
57 66 32 47
61 69 30 44
32 45 26 44
22 40 22 41
49 46 39 38
62 78 68 83
55 79 58 83
Opportunity for banks and insurance providers – Building content marketing strategies to engage consumers and drive engagement is a strong opportunity for providers – as is integrating social media communication with other channels.
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Drive ease with supported self-service
Over 4 in 5 want human help on every web or app page
In terms of frequency of contact for many consumers online and mobile banking apps are the top channels in banking.
7% use a mobile banking app once a day (France 8%, Spain 10% and UK 6%)
20% use online banking once a day or more (France 23%, Spain 20% and UK 18%)
Providing ‘supported self-service’ is vital to both providers and consumers for three reasons:
- Firstly, to help consumers when they have a problem with self-service or need further information
- Secondly, to convert a sale or assist consumers in making choices about products
- Thirdly, to extend the capability of the self-service channels, enabling customers to complete more tasks.
While many financial services providers see online channels as closed entities, consumers potentially want help on every page of the website or app, with the phone still the most popular option (77%), followed by e-mail (70%), web-chat (44%) and video-chat (27%). The popularity of phone is reaffirmed with 2 in 3 people agreeing that financial services providers should have one easy to remember phone number.
Equally the branch still has strong appeal as a place to have problems solved. New channels such as video conferencing and video-chat are gaining traction too.
Evolving mobile banking applications – more capability
As with online banking applications, 55% say they would like smartphone banking applications that make it easy to e-mail, chat or call staff when desired. A further 59% would like visual IVR/automated phone services that provide screen-based prompts when calling a financial services provider.
When you are on a financial services provider's web site, if you need help how interested would you be in being supported by…?
82% Branch
Phone
Web-chat
Video conference
FAQs on website
One-way video-chat
Click to call
Co-browse
81%
81%
66%
53%
52%
48%
41%
38%
Benefits of using video conferencing in financial services
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Web-chat is growing fast as an ‘instant channel’
Web-chat is well suited to this role – it can be offered proactively or not on web-sites and apps, and is gaining in popularity as the number of consumers using web-chat to contact the following organisations show:
- Telecoms, 13% - Retailer, 12% - Bank, 12%- Insurance company, 6%.
In total 55% of consumers have used web-chat to interact with organisations (France 53%, Spain 60% and UK 53%), the challenge for financial services providers being that only 41% are confident sharing their personal data in this way (France 34%, Spain 42% and UK 43%).
However, the benefits of web-chat to users are clear, with consumers valuing the record of their conversation and the ability to look, and jointly view, information on screen (provided by the advisor).
From web-chat to video-chat
The progression from using web-chat to video-chat is becoming more likely with the growth of video culture. More and more consumers are using video in everyday life as a basic means of communication:
- 49% watch video news more often than written news (France 55%, Spain 57% and UK 42%)
- 33% often send video/links to video to their friends (France 29%, Spain 49% and UK 29%)
- 1 in 3 often record video on a smartphone (France 20%, Spain 39% and UK 29%).
The benefits of video include adding to understanding, improving emotional connection and helping to make choices according to consumers needs. These are important to financial services providers who deal with complicated products and need to build customer understanding and trust. Consumers still like to see the see ‘the whites of the eyes’ of salespeople before making a commitment to buy.
In the case where instant answers are required, using web-chat but offering the option of video-chat will have strong appeal to consumers. The benefits for consumers are immediacy and personalised service.
Social media – less popular for direct contactwith financial services providers
3 in 4 say they would not use social media to contact their bank. Only 4% see it as a way to embarrass their bank into action. Only 7% think they’d get better service this way. And 10% think it gets complaints resolved. However, more consumers than in 2012 are interested in using social media to contact their financial services provider.
Opportunity for banks and insurance providers – Rather than self-service being seen as a closed channel, financial services providers need to develop strategies for supported self-service to maximise customer ease and provide elaborated services where needed when consumers are using websites apps.
Benefits of using video conferencing in financial services
62%Liked web-chat as there is a record of the conversation
61%Were satisfied with the outcomeof web-chat conversation
59%Found web-chat more valuablethan phone call as you canlook at things on the screen
Benefits of web-chat
35%Showing me how to do something
33%Understanding how something works
32%Speaking to friends / relatives
23%Shopping to select a product
16%For work purposes
Benefits of using video
61%Would not need to make anappointment
60%Would be served straight away
59%Could have complex issuesexplained more easily
59%Easier to see documentationor info
49%Trust with financial servicesprovider improved
Benefits of video
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Re-shape the phone channel to deliver answers and relationships
51% say contact centres, that are easier to get through to would make them feel warmer to providers
Large numbers of consumers continue to use the phone to contact financial services providers. It remains the second most widely used channel after the branch. The number of people using the phone has grown as follows:
- An increase of nearly 20% in consumers calling the contact centre (UK 57% and Spain 46%) at least once a year- 37% French consumers called a contact centre and 66% their local branch.
1 in 3 consumers know their bank’s phone number off by heart, or have it stored in their mobile contacts (France 45%, Spain 41% and UK 19%).
The role of the phone in building emotional engagement is important, with 51% saying that contact centres that were easier to get through to would make them feel warmer to their provider.
Changes in bank policy and regulation in the UK means that generating sales is now more reliant on building rapport and emotional engagement, while providing regulated financial advice or commissioned sales techniques is more challenging.
Perceptions of phone service need to be addressed
Despite the popularity of the phone, perceptions of service have not improved since 2012. British consumers still say their top complaint about UK call centres is in having to deal with overseas advisors who are difficult to communicate with – 36% citing this complaint.
Some 41% say the music and messages whilst on hold do not provide a good impression of the organisation. Further there are strong impressions of phone service that need to be overcome – including waiting to be served, having to argue with staff and being cross-sold to indiscriminately.
Expectation of my next call to a financial services provider
Consumers have developed strategies for dealing with contact centres, including:
1 in 4 visiting the branch to sort out the issue (France 28%, Spain 35% and UK 19%)
1 in 5 calling back to speak to a different advisor (France 16%, Spain 20% and UK 15%)
1 in 20 writing to the CEO (France 5%, Spain 6% and UK 2%) to make a complaint.
63% Will have to waitto be served
They will try tosell me something
They’ll make no effort toget to know me
Staff won’t be availableto do what I want
Won’t be able to speak tothe person I want
Will have to ask forsomeone senior
Will argue withthem
Will enjoy theexperience
59%
54%
34%
33%
33%
25%
20%
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Consumers’ call for change
There is a range of improvements consumers would like, with 36% wanting call centres to have more knowledgeable staff. 48% want a named individual to contact by phone and 32% ask for more friendly staff. Other improvements suggested include:
“Have a more direct relationship between branches and call centre, so customers would be more likely to speak to people who knew about their account/area/branch”
“Train all staff to work in one department to save having to go from one person to the next. Have an assigned person to deal with your issue from start to finish, so if you call back they remember”
“Provide a personalised service for every customer. everybody likes special treatment.”
“Have a Freephone number”
“Move the call centre to the UK, pay workers a living wage/don’t treat them like cattle”
“Offer video conferencing facilities”
Opportunity for banks and insurance providers – The phone remains a key channel, but financial services providers need to invest more to retain the power to engage the customer.
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Consider biometrics for speed and security
48% say they have to remember too many passwords
Consumers understand the need for financial services providers to protect their personal details and financial affairs. However, the raft of passwords, authentications and effort required to gain access to accounts can be a barrier to engagement. Similarly customers complain that they are often asked to repeat their personal details during the same phone call, particularly in the UK.
Consolidated passwords for customers would have real appeal, whatever the difficulty of implementation.
Voice biometrics is an answer for calls
Consumers are attracted by the idea of voice biometrics as a solution to the frustrations of ID&V. There has been a 100% leap in consumers using voice recognition to make calls, but other forms of voice activation - Siri, car and Smart TV commands – have become more common.
ID&V impacts on other day-to-day interactions
Although ID&V is the core frustration for consumers, a range of other interactions are affected by similarly time-consuming and effort-increasing problems:
- 48% say the account opening process for new products is too complex (a 22% increase on 2012)
- Some 45% were interested in a system which tells staff a customer is about to enter the bank so they can tailor services to that person (France 43%, Spain 54% and UK 41%).
Payments
The range of ways to make payments is growing and 74% say they would like fingerprint recognition to make a payment, avoiding the need for a PIN (France 67%, Spain 80% and UK 70%).
Opportunity for banks and insurance providers – Improve verification processes including making it easier for customers by using biometric identification.
1in248%33%48%
Put off by providers if there are toomany passwords or ID hurdles
My bank takes too long to identify mewhen I phone a call centre
I have so many passwords it’s difficultto access services
Have used voice recognition services whenphoning call centres (up 100% on 2012)
42% Often asked to repeat my account details on the same call which is irritating
62% Want voice biometrics which recognise your voice & identifies you when you call a bank. This means you don't have to provide any personal information
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Build branch appeal to generate dialogue
Only 15% have had a cup of coffee or tea in a bank branch
While the growth of digital finance for research and servicing is evident, consumers are still very reliant on face-to-face communication for the purchase of a range of financial products. For the following products, face-to-face is the most popular channel for making a purchase:
- Current account, credit card, mortgage, health insurance, pension and savings products.
The debate about the future of the branch has continued for many years and, whilst branch estates are declining in some countries, many banks are investing in branch refurbishment programmes. From a retailer’s perspective, bank executives should be working hard to drive customers into the branch.
Although younger generations are less likely to use face-to-face channels, lack of relevant financial knowledge means they still want branches, meetings in coffee shops, home and offices to understand and buy products. This makes understanding easier but also builds the emotional connection required to support correct decision-making.
Branches have had real success in driving self-service on the premises and there has been a 15% increase in consumers using self-service machines.
Consumers are looking for a new branch experience
The branch still has real power to generate relationships and sales, particularly given the new regulatory environment in the UK.
The argument against the bank branch is that consumers are visiting them less frequently – though they are still inclined to use them for the most important transactions. However, the public do not rate the environment of the bank branch very highly, saying they are:
- 82% dull/boring- 74% uncomfortable/stressful- 72% low-tech- 69% cold/unwelcoming- 59% old fashioned/dated.
While financial services are not as desirable as haute couture, more can be done to improve the branch environment for consumers.
Technology improvements in the branch
Many banks have updated their branches or have programmes to do so, incorporating services such as free Wi-Fi for customers. There is a range of improvements that would improve ease of interaction (including open tills and enabling staff and customers to view the same screen) as well as more fundamental ease-of-use improvements, such as the ability to issue new payment cards on the spot.
Consumers suggested a range of improvements:
“Make it look more welcoming – lots of space to queue. Space available could be used for more deposit machines etc.”
“Put in a comfortable waiting area and offer free coffee and Wi Fi”
“More appealing surroundings… some bookmakers have better looking environments than banks”
“Teach the staff to ****** smile”
“More self serving stuff, more people there to help and reduce queue size, train all staff members so they can all help you in any aspect you have”
58%83%39%17%20%
Prefer open tills at branches where staff are not behind glass
I like it when I can see the same screen at the desk of the branch staff
Want branches which can issue new or replacement cards immediately in person
Aware of the risk of armedrobbery in branch
Want to use their smartphone in branch
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Banks across the world have invested in changing and updating environments and consumers are expecting to see more. Consumers would welcome some technological improvements that address problems faced by consumers today in bank branches:
- long queues in the branch- the ability to speak to someone specific- the ability to make an appointment with a specialist.
Between 2012 and 2014 the number of people interested in enhancements to the branch has grown:
- Free access to Wi-Fi (up 10% Spain and 30% UK)- More self-service (up 67% Spain and 2% UK)- Improved design (up 25% Spain and 33% UK).
Overall, there is good interest in a range of improvements to the bank branch.
In terms of location the top preferred locations for branches are as follows:
- 65% shopping centre the customer regularly visits- 47% supermarket the customer visits- 38% shared branches with other banks- 30% post office- 16% drive-thru facility.
Opportunity for banks and insurance providers – Investing in person-to-person channels is important in driving up revenues for financial providers. Maximising the effectiveness of these interactions through fast appointments, backing up information and data, recording interactions and fast processes is important to consumers.
Free access to Wi-Fi
A friendly welcome as you walk in
PC terminals for reasearch
A more confortable environment
More knowledgeable staff
Improved design
More self-service facilities
Ability to book appointments online
TV screens showing news, music, sport etc,
Mood / brighter lighting
46%
42%
36%
34%
31%
27%
26%
26%
13%
8%
67%
16%
49%
36%
43%
32%
38%
21%
18%
23%
49%
40%
31%
35%
40%
24%
38%
41%
18%
25%
Which of the following do you think banks should offer to make their branches more appealing to customers?"
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The UK consumer – Acting independently of financial providers
Omni-channel behaviour
The research evidences the trend that consumers use a range of channels to interact with organisations. Customers since 2012 have been using more ways to interact and contact their banks and insurance providers, the average number of channels used by UK customers to contact them has increased from 4.3 to 6.2, with 44% of customers saying they change the way they contact a financial services provider depending on their situation. Supported self-service
68% have used the Internet to communicate with their bank in the last 12 months. Some providers make effective use of supported self-service to solve queries or problems when customers’ transact online. 44% of consumers would rather use web chat than a list of FAQs. Web-chat provides an opportunity to engage with customers to further understand their predicaments, choices and intentions and 11% of those in the UK have used web-chat conversations to contact their bank in the last 12 months.
Social media is increasingly being used to make formal complaints. 6% have used social media to contact their financial services provider with half of them thinking it was a convenient way to make contact.
The phone and branch continue to be preferred ways of contacting financial service providers but they continue to frustrate customers with 34% of consumers agreeing it takes too long for banks to identify them when they phone their bank’s call centre. 52% agree they are asked too often to repeat their account details. 72% say the queue to the bank branch at lunchtime is too long. Face-to-face communication remains popular – 81% have visited a bank branch and in the last 2 years there has been a 4% increase in number of consumers overall visits.
Opportunity to strengthen relationships
UK consumers do not feel they have a strong relationship with their bank and only 21% think that financial service providers have significantly improved their service since the financial crash. 34% trust their bank to treat them honestly and fairly (78% in France and 45% in Spain).
With 57% believing UK bank’s customer service is faceless and anonymous, the relationship between banks and consumers is not as good as it could be, with only 29% saying they have a strong relationship (compared to 43% in Spain).
52% of consumers believe their bank would not care if they switched to another bank with only 24% of UK customers knowing the name of at least one person at their local high-street bank branch (58% in France, 59% in Spain). The Autonomous Customer is clearly identified in this research, with 54% of them using other sources than their bank to get advice about financial services.
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The French consumer – Strong financial relationships
The Spanish Consumer – New channels used for finance
High trust in French financial services providers
78% of consumers in France trust their financial services providers to treat them honestly and fairly (in the UK it is only 34%). 51% describe their relationship with their bank as strong, in contrast to just 29% in the UK. French banks are usually better at customer service with the highest score for consumers enjoying the experience of visiting a bank branch (34%). French consumers were also the least likely to regard banks’ customer service as faceless and anonymous. In addition they are less likely to turn to sources other than their bank for financial services.
Effective two-way communication is vital in developing good customer relationships, and 39% of consumers often change the way they contact their financial services provider depending on their situation.
Channel behaviours
The potential for organisations to use social media interactions is evident, with 52% of French people using Facebook two times a week or more. Only 8%, however actually follow their bank on Facebook. 75% of consumers tend to use the Internet for simple transactions leaving the more complex issues for the phone or when visiting a bank branch. 23% in France use online banking once a day compared to 18% in the UK.
When online, consumers in France are more sophisticated in their use of supported self-service than the UK and Spain, whilst 40% would rather use web-chat than FAQs, but to date, 13% of French consumers have used web-chat with their bank.
66% have contacted their bank branch in the last 12 months by phone. Similarly in the branch 46% thought the queue to the teller at lunchtime is too long with 74% saying that when they walk into a bank they would like to immediately be offered assistance.
Difficulty in getting financial advice
As many as 64% of Spanish consumers say it is very difficult to get independent advice that they can trust about money and finance nowadays. Only 45% expect their bank to treat them honestly and fairly – 11% more than in the UK but 33% less than in France. 67% of Spanish consumers would buy more from providers that make it easier for them to do business.
Half of the respondents from Spain say that they closely monitor their finances using a personal financial management tool provided by their bank (17% in the UK) with 57% of consumers opting to deal directly with their general insurance provider. Car and household insurance claims appear to be processed much faster than in the UK, as is arranging to switch insurance providers.
Social media and finance popular
The consumer trend of using a range of channels including social media to interact with financial services is clearly evident in Spain with 19% following their bank on Facebook. More consumers use Facebook, Twitter and YouTube than other countries with 44% having fibre optic and superfast broadband at home compared to 21% in France.
Smartphones used extensively
26% of consumers from Spain, compared to 16% in the UK, tend to use mobile banking apps more often than Internet self-service for banking. 20% use apps on their mobile phones, which link to location based services. France has only 7% consumer uptake of similar apps. Also, in Spain 24% would like to use their smartphone’s banking app when in their bank branch. The Spanish, being more connected, are more open to proactive notifications, such as when an account is overdrawn, when a sum is paid into their account, when an amount is paid out of an account and reminders to renew insurance.
61% say that banks have focused too much on self-service rather than ‘getting to know me and my needs’, compared to 48% in France. In bank branches 70% of Spanish consumers anticipate they will have to queue. 79% do not enjoy their visits to a bank branch, while 4 in 5 of them feel it is cold and unwelcoming and wish the staff were friendlier.
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The central challenge of Youbiquity Finance is to make finance services available everywhere, and integrate them in a way that provides seamless service to customers. The different preferences of French, Spanish and UK consumers show that this task can have a global direction but must be executed differently at national level.
The contact centre, whether local or central, will become the core of these new and traditional channels. Its role as the ‘eyes and ears’ of the organisation will remain crucial in understanding customers’ experiences and using proactive contact to drive good service.
The 2014 research has shown that financial services providers need to do more than just provide fast and low-effort service and sales to customers. There is also the need to elaborate and provide more information, communication and direction to consumers when they want to invest time to make the right decision about their money. This will drive customers’ emotional engagement.
Conclusion
Ease: Make it easy for simple queries and transactions when customers want to save time…
Elaboration:Elaborate and provide more information to help make the right decision when customers want to invest time
The future contact centre
Automatedcalls / ID&V
Complex calls
‘Branch’ calls
E-mails
Web-chatsSmart
outbound
Web self-servicesupport
Mobilebanking
Video –direct & branch
Social media
ContactCentre core-Youbiquity
Finance
Indound calls
Outbound calls
Traditionalcall centre
Working together
Offices worldwide
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