A new global survey finds the ability to understand and use banking products is growing in importance worldwide, and consumers continue to expect more in terms of loyalty rewards than banks are providing.
The FIS 2016 Performance Against Customer Expectations (PACE) Index also reveals expectations for aspirational support – consumers’ primary financial institution helping guide them toward their financial goals – increased in every country, providing opportunities for financial institutions to grow relationships with customers.
More than 70% of respondents said they have no financial advisor – underscoring a prime opportunity for financial institutions to provide value to their customers.
What Millennials Said
• Being digitally connected to their financial institution matters more than reliability and transparency to millennials.
• Banked millennials are four times more likely to use a mobile personal financial management (PFM) app from their primary financial institution as from another source.
• Slow loan processing is the single biggest pain point for this consumer group.
• Seventy two percent of millennials have no form of financial advisor. Twenty eight percent are receptive to robo-advisors and another 22 percent are open to online financial coaching.
• U.S. consumers still believe the foundational attributes of banking – Safety, Security, Fairness, Reliability and Transparency – are the most important. Scores of these attributes improved, if only slightly, indicating that banking providers have made modest progress aligning their performance with consumers’ expectation.
• As many as one-in-three U.S. bank customers ranked their primary financial institution as the first place they would turn for major life events that require financial investment. However, that leaves at least twice as many customers who may consider an alternative resource, particularly when it comes to investing or retirement planning.
• Last year, a significant gap existed between consumer expectations and bank performance for Recognition, rewarding consumers for their business. Unfortunately, in 2016 that gap continued to widen – by 2 points.
• Community bank customers continue to rank in-person service far more important than the overall U.S. ranking, and community bank delivery of in-person service outperforms their consumers’ expectations by a wide margin.
• Last year, a moderate gap existed between consumer expectations and community bank performance for Advice, providing trusted advice to help consumers manage their money. In 2016, that gap widened significantly – by 5 points. Providing financial advice, in addition to helping consumers gain control over their finances, represents a prime opportunity for community banks to make inroads, especially with millennials.
FIS surveyed more than 10,000 banked consumers in 10 countries, including Australia, Brazil, Canada, Germany, India, Philippines, Poland, Switzerland, the United Kingdom, and the United States.
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