Our Financial Services Global Distribution & Marketing Consumer Survey of more than 32,000 banking customers worldwide identified six emerging trends with important implications for banks.  In this blog, I examine three of these trends:

  1. Data as a Currency.  We found that consumers are willing to share more of their personal data with their banks, but there is a clear trade-off—they understand the value of their data and expect to receive benefits for sharing it, in the form of offers, reduced interest rates, recognition and other rewards. Globally, 67 percent will grant banks access to more personal data, but 63 percent want more tailored advice, and the same number demand priority services, such as expedited loan approvals, or a monetary benefit, such as more competitive pricing, in return for the information they share. In the US, 73 percent of respondents said they would share more data with banks in return for new benefits, as did 65 percent of Canadian respondents.
  2. Younger Consumers Drawn to GAFA Model.  Google, Apple, Facebook and Amazon (collectively known as GAFA) and other platforms are providing attractive alternatives to traditional banks, especially among younger generations. While 31 percent of consumers would consider purchasing banking services from an online provider, such as Google or Amazon, this rises to 41 percent among Gen Z (ages 18-21) respondents.  This underlines the attraction of the highly responsive, tailored service consumers have become accustomed to on these platforms.Interest among Gen Y respondents was higher in the US at 50 percent and significantly lower in Canada at just 14 percent.  Younger customers increasingly want to engage via online platforms to help shape future banking products and services that cater to their needs. While only 8 percent of seniors want to participate in this type of co-creation via social media channels, this rises to 36 percent among Gen Y (ages 22 to 34) respondents.
  3. Automated Support is Welcome.  Banking customers are open to receiving entirely computer-generated support, provided it can deliver the tailored and personalized services they need. Nearly three-quarters (71 percent) of banking customers, for example, say they are willing to receive automated support regarding which type of bank account they should open. The US matched up with global preferences at 72 percent but Canada was somewhat lower at 59 percent.

This is viewed as a route to greater control over their banking experience:  The potential for improved speed and convenience is cited as the main reason consumers will turn to automated support, with 39 percent citing this as a motivation.

In the next blog in this series, I will look at three more emerging trends shaping banks’ approaches to dealing with changing consumer attitudes and expectations.

Download “Beyond Digital:  How Can Banks Meet Customer Demands?”

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