40% of those surveyed said they would likely leave their primary financial institution for digital banking services that compare to an online shopping experience. Increased reliance on digital channels has become the norm for many consumers during the pandemic. This expanded use of digital in the daily life of a large percentage of the population has given consumers more experience with a wide range of digital solutions. As a result, consumers have been exposed to both highly rated and mediocre digital platforms, giving them a set of informal benchmarks that they use to assess the digital experiences offered by their major financial institutions.
Highlights of the survey include:
Among consumers of banking services, those with an HHI of $ 100,000 + are more likely than those with an HHI of less than $ 100,000 to do business with regional and national banks because they offer better digital banking (62% versus 48%). Additionally, those with an HHI of $ 100,000 + are more likely than those with an HHI of $ 50,000- $ 99.9,000 to believe that online / digital-only banks offer better digital banking (53% vs. 44%). Targeting these households in a way that will attract and retain them will require more from financial institutions than personalization based on brute force marketing.
56% of respondents said they prefer community-based financial institutions, but their digital offerings did not meet their needs, while 53% said they did their banking at regional and national banks because they offered a better digital banking experience. An exodus of community institutions to regional, national and digital-only challenger banks was underway before the pandemic. To prevent this migration from accelerating, community banks and credit unions will need to unleash the potential of a powerful new technology designed to provide these institutions with the ability to create digital experiences for their clients and members that are beyond the capabilities of the community. branch.
About half (51%) of those surveyed identified convenience, defined as the ability to do anything that can be done digitally in a branch, as the most important quality in a digital banking experience. While the idea of an “Amazon-style” digital experiment has been widely discussed in financial services industries, community financial institutions have made only limited progress towards achieving this goal. Meanwhile, banking consumers are adding to the list what they think is an acceptable digital experience. More than a third of respondents cited easy access and all the latest digital innovations (35%) as critical. Additionally, more than a quarter of respondents (27%) said they wanted a digital banking experience that offered unique content and designed for their specific needs.
“The survey shows that credit unions and community banks are at a critical juncture,” says Craig McLaughlin, co-founder and CEO of Finalytics.ai. “How community financial institutions respond to these challenges will determine the future of these organizations and, in many cases, the future of the communities they serve. To remain relevant in the market, it is crucial that credit unions and community financial institutions take into account emerging technologies that unleash the value of data and apply machining learning that can automate a digital experience that goes beyond. beyond the expectations of customers and members.
Silicon Valley-based Finalytics.ai is the first community-based financial institution platform to apply real-time big data and machine learning to meet the unique needs of potential and current members. Its segment-of-one experience is based on the unique identities of individuals, orchestrating their financial journeys using dynamic segmentation and content to meet their needs. This allows institutions to be more competitive, stimulate consumer acquisition and improve retention. Visit https://finallytics.ai/ to learn more.
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- 40% of consumers are likely to leave the large financial institution
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