Banks need to become more flexible if they are to win back customers following the recession, according to a global study by self-service provider NCR Corporation (NYSE: NCR).
The study found that 80 per cent of customers were more likely to bank with a provider that enabled them to manage their finances easily via online, mobile and kiosk self-services, rather than with an institution that ignores technology advancements and service channel integration.
“Today, consumers are comfortable using a range of digital technologies to manage their lives and expect to be able to manage their finances in a similar way,” said Elton Birden, NCR’s Managing Director for the UK, Ireland and the Nordics. “Banks must respond to these demands or risk losing business.”
Speed and ease of access to financial services such as payment deposits are key priorities for consumers, according to NCR’s research. Of those surveyed, over a third (39 per cent) were keen to experience shorter lines at the teller counter, with 31 per cent demanding online, ATM or mobile bill payment services.
But despite a desire to manage their banking needs autonomously, people still want to discuss their finances face to face with a consultant, the study found. Three quarters of those surveyed claimed the ability to pre-book an appointment with a financial consultant online, via a mobile device or ATM kiosk would be useful.
“Financial institutions have been forced to change the way they do business and interact with customers to help rebuild trust in the banking industry and encourage customer loyalty,” said Birden.
“The banks that are succeeding are those that are now investing in technologies that offer customers instant access to an increased number of services and facilities, and greater autonomy over their finances,” he added.
Services that banks are introducing include text alerts to notify customers when they are nearing their overdraft limit and the ability to pay bills at ATMs. New smart phones are making it easier to introduce downloadable applications that enable customers to switch funds between higher interest and current accounts, and pay bills.
This is in addition to NCR APTRA Self-Scheduler solutions which enables customers to schedule appointments with bank staff at a convenient time and location, via the Internet or touch screens in the branch. The appointment is confirmed immediately by text message, e-mail or text-to-speech and reminders sent out.
From initial contact, the customer’s purchase process is monitored in detail, with their requirements for advice and information captured. This enables bank to monitor the speeds at which customers are served and their needs met from a branch, regional and national perspective.
Banks are facing increasing pressures, not just as a result of lost consumer confidence, but also from potential new entrants to the market. In a bid to reduce operational costs, many retailers, leisure groups and international providers are using self-service to expand their offerings and move into the banking arena.
Already, consumers use over 40,000 NCR ATMs in the UK to get quick and easy access to their cash, make deposits and manage their bank accounts.
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