The Banking Industry Has Accelerated Digitization, But Lost The Confidence Of Customers
2021-01-26 | by CusiGO
The epidemic has changed the way customers contact their banks by promoting digitization, which has reduced the cost of entities and enabled them to close their offices. However, Accenture’s 2020 global banking consumer warned that this situation “accelerated the erosion of consumer confidence” and that consumers regarded products as “prices” and lost personal connections.
The study, based on a survey of more than 47000 consumers around the world (more than 2000 participants in Spain), points out that without strong emotional ties with banks, Customers are more inclined to see banking services as a commodity, in which their costs are increased and they can flexibly solve any problems that customers encounter.
According to Accenture, 35% of Spanish consumers list value for money as one of the three factors in dealing with banks. At the same time, Diego L ó PEZ Abell á n, head of financial services in Spain, Portugal and Israel, said that people found that “the craze for numbers is depriving the banking industry of its traditional humanistic care.”.
The winner of the battle, the executive said, will be “banks that inject humanity and personalization into digital interaction, because they will be able to build strong ties with customers, build trust, and drive growth.”.
“While many people welcome the digital shift with the advent of the epidemic, some customer groups still tend to go to their branches, even the simplest deals,” the consultancy warned in its report This is a key issue in considering the large-scale closure of offices, just like the merger of caixabank Bankia and unicaja liberbank and other entities, even though they are still independent.
With covid-19 (Santander alone) leading to the closure of retail bank branches, Santander has announced the closure of 1033 branches in 2021, “50% of customers now interact with banks at least once a week through mobile apps or websites, up from 32% two years ago.”
But the banking industry has also proposed charging for services that used to be free, which could infuriate customers. According to Diego Lopez, they have three options: “to protect themselves from the small businesses that are most affected by cvd-19, to promote cross selling of products, especially insurance, and to charge for deposits and other services.” On the latter point, he suggested subdividing customers to understand the unit cost of each of them in the bank, so as not to harm the most profitable customers.