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13 must-know statistics about digital banking

As more and more services go digital, customers are demanding the same from their bank. They want to conduct banking operations remotely, from whatever device they’re using, and at their own convenience. Therefore, to deliver a winning customer service, banks need to offer different digital tools as part of an omnichannel experience that is flexible, streamlined, and seamless.

Statistics reveal that the growing power of Millennials, as well as the pandemic, are creating a shift in customer preferences towards digital services. Banks are now finally starting to realize the growing importance of offering customers a digitally-enabled omnichannel experience.

Statistics about banking technology

Digital transformation can take many forms and banks need to ensure the process takes into account current customer preferences. Those tools that allow greater personalization and flexibility are those most appreciated by consumers, while many banks believe customers aren’t yet ready for automated services. Nevertheless, tools like chatbots can actually improve the customer experience by giving advisors more time.

The two technologies financial organizations consider the most important to deliver better customer experiences within the next 12 months are mobile apps and omnichannel and personalization tools (Unblu, 2020). 

Financial providers are being slower to implement bots and other automated customer experience tools. 62% say customers aren’t ready for them (Unblu, 2020). 

However, chatbots can improve the customer experience by freeing up advisors. 64% of advisors with chatbots say that it allows them to spend more time solving complex problems - compared to 50% of advisors without chatbots (Salesforce, 2019). 

Statistics about digital banking transformation

Studies show that customers increasingly favor digital platforms, such as mobile. And while banks are being slow to adopt digital transformation initiatives, there is a growing awareness that digital technology - especially Cloud technology - will play a pivotal role in the future of banking.

42% of customers prefer the mobile banking experience to a desktop and in-branch experience when given a choice (Future Branches Consumer Study, 2019)

Despite this, more than a third (35%) of financial organizations say they are only just beginning their journey towards digital transformation, or not pursuing digital transformation initiatives at all  (Unblu, 2020)

Nevertheless, 84% of banking business executives believe that Cloud technology will play a transformative role in banking (The Economist Intelligence Unit, 2020). 

And out of those financial service companies considering third party collaboration, 47% wanted to collaborate with a fintech firm (PwC).

Statistics about retail banking

In retail banking, customer loyalty is no longer the powerful force it used to be, with consumers happy to move banks based on recommendations. What makes a customer decide to change banks? It’s likely to be a desire for improved customer service - one that is digitally-enabled and omnichannel, with the ability to choose different ways of communicating with their bank.

Younger consumers value recommendations from friends and family. More than 50% of those under 35 say they would open a primary bank account based on a trusted referral (PwC). 

In fact, 50% are just as likely to open their next account with a new bank as they are with their existing bank (PwC). 

Why might they want to change bank? In search of a better digital experience. More than half of respondents in an Accenture survey expressed a desire for a true omnichannel banking experience, and the ability to switch seamlessly between physical and digital channels (Accenture, 2019). 

Statistics about private banking

In private banking, digital transformation could radically improve the customer experience for high-net-worth individuals (HNWI), many of whom are unimpressed with the current quality of services. While they still want the option of human advisory services, there is a growing shift in preferences towards a digitally-enabled banking journey - accelerated both by the pandemic and the demands of Millennial clients.

A third of high-net-worth clients report being unsatisfied with the quality of financial advice offered by their main bank (McKinsey, 2020). 

In 2018, consumers still preferred traditional communication channels to digital ones. 62% used branches most frequently, 6% used contact centers, and only 32% used digital channels (Deloitte). 

However, Covid-19 has accelerated a shift in preferences. Now, 71% of consumers prefer multichannel interactions and 25% express a desire for a fully digitally enabled private banking journey with remote human assistance when necessary (McKinsey, 2020). 

Predicting current customer preferences is therefore difficult. While 59% of HNWIs prefer an in-person meeting with their relationship manager for important investment decisions, 67 % of Millennials say they prefer robo advisory, compared to just 30% Gen X and Babyboomers (Deloitte, 2019). 

Conversational banking and Unblu

Unblu understands the necessity of digital transformation if banks are to meet the challenges facing the industry. Our digital tools allow financial providers to offer customers a flexible and seamless omnichannel experience.

Customer Experience,Digital Transformation,Customer service,Industry Trends