IT Intelligence Bulletin – Consumers are willing to share more personal data, including information from online purchases, Facebook, Uber and OpenTable, for personalized financial guidance to stay on budget and achieve financial goals.
According to research findings released by NTT DATA Services, voice-controlled virtual assistants such as Amazon’s Alexa and Apple’s Siri will influence the future of online and mobile interactions between consumers and their financial services institutions and insurance carriers.
“27 percent of survey respondents are willing to share personal data for more financial guidance and a more personalized digital customer experience. These ‘Explorers’ are habitual mobile users, valuing tools, advice and reminders from their financial services institutions,” said Lisa Woodley, vice president, Customer Experience, Financial Services and Insurance Business Consulting, NTT DATA Services. “Explorers are the most important customer segment for financial services and insurance carriers to pay attention to as they pose a sizable opportunity for growth and customer retention.”
In September 2017, NTT DATA surveyed online 1,102 U.S. consumers and 102 U.S. financial services institutions (FSIs), including bankers, insurers, and wealth managers, to answer three key questions:
- Are consumers happy with the digital customer experience (DCX) offered by FSIs?
- What do consumers want from their DCX of the future?
- What challenges do FSIs need to overcome to improve the DCX?
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Key study findings include:
- Virtual assistants are the future method for consumers to interact with FSIs. 41 percent of “Explorers” would use virtual assistants such as Alexa and Siri to interact and engage with their bank or insurance carrier.
- A more personalized DCX and strategic financial guidance to help reach financial goals is a must for Explorers.
- 75 percent want FSIs to connect the dots between their income, expenses, and savings – for example, recommending saving bonus
- 75 percent want FSIs to proactively send reminders on upcoming major payments
- 66 percent want FSIs to act as a voice of reason on major overall spending decisions – advise against purchases to help a customer stay within budget
- 61 percent want FSIs to intervene and prevent major purchases
- Customers are willing to share personal data for an improved DCX. Consumers are comfortable providing FSIs with access to a wide range of data if it enables them to provide advice on spending, insurance products or coverages, or targeted financing options to meet their financial goals.
- 68 percent would share online retail purchase information
- 61 percent would share geo location information
- 49 percent would share Uber, Lyft and OpenTable information
- 42 percent would share Facebook and Twitter information
- Customer satisfaction with the DCX offered by FSIs is lukewarm. Only 16 percent of respondents are totally satisfied with their FSI DCX.
- Top 4 most annoying customer experiences include:
- Not being able to accomplish what I wanted to do
- Options provided are not relevant
- Having time being wasted by tasks that take too long
- Having to enter the same information multiple times in a single transaction
- 40 percent increase in consumer’s daily use of mobile devices for financial transactions in three years. NTT DATA compared data from its 2014 “Mobile Banking: The New American Addiction” study with this 2017 research and found that there has been a significant increase in mobile banking adoption.
- 36 percent of consumers are accessing their mobile banking accounts habitually (4+ times a week or more)
- 67 percent access their mobile banking weekly
- Top three most important criteria for having the best DCX:
- 68 percent – Easy to understand
- 62 percent – Minimal effort required to gain access to digital tools
- 49 percent – Speed to complete financial transactions
“Data makes the difference in digital customer experience,” said Woodley. “The only way for FSIs to create a superior DCX and provide strategic financial guidance to help on-the-go customers stay on budget and reach their financial goals is with data. I urge FSIs to use data-driven customer experience to future proof their business.”
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