ANN ARBOR, Mich.--(BUSINESS WIRE)--Until switching banks is as painless as switching cell phone providers, at least 21% of customers feel like they’re being held captive by their current bank. And despite the growing popularity of online banking, nearly half (49%) of customers still want access to a physical branch. These are just some of the key findings from a newly released banking report conducted by ForeSee, a leader in Voice of Customer (VOC) solutions.
The new ForeSee Experience Index (FXI): 2017 Banking Report surveyed more than 4,000 U.S. banking customers to examine factors that influence customer experience (CX) with national banks, regional banks, and credit unions. The research reveals that while CX is not a top reason customers select a bank, a great digital customer experience is a crucial retention tool and one that ranks as a top reason people stay with a bank. In general, customer satisfaction was highest with credit unions (86), outperforming regional (82) and national banks (80) using the FXI’s 100-point scale.
Other key findings of the report include:
- Branches still matter: Nearly two-thirds (61%) of customers start their journey in a digital channel (desktop and mobile web) when opening a new account. Yet, more than half of those customers (59%) who started their journey digitally end up finishing at a branch location.
- Banks rely too much on captive loyalty to retain customers: Only 38% of bank customers said they would definitely consider their primary bank when in the market for new services. Coupled with the 21% that aren’t switching banks due to concern about the consequences of switching (e.g., missed payments, etc.) , that is a considerable percentage of customers held captive.
- Younger customers are less loyal: One-fifth of Gen Z consumers have already switched banks at least once in their short lifetime, and over a quarter of Gen Z banking customers would switch banks if it were as easy as switching cell phones.
- Customers want more fintech: On average, 53% of people want more fintech services offered or integrated through their primary bank. And younger groups are even hungrier, with three-quarters of Gen Z (76%) and millennials (70%) looking for more such fintech services.
“The banking industry is being reshaped by fierce competition, notably from fintech companies that offer everything from payments to investing, often at a lower cost and with greater perceived convenience, “ says Jason Conrad, Vice President and author of the FXI: 2017 Banking Report. “But our research confirms that customers still want face-to-face interaction, putting the onus on retail banks to deliver omnichannel efficiency while balancing the needs of key customer segments. Measuring CX is the first step towards managing it.”
By listening to and addressing customer feedback, Union Bank and Trust, the largest bank headquartered in Virginia managing just over $8.5 billion, aspires to create experiences that drive higher customers satisfaction. The bank has seen the strong impact CX can make on an organization in a relatively short time – as well as how CX data is vital to fulfilling business goals while remaining fiscally responsible.
About the FXI: Banking Report
The ForeSee Experience Index (FXI): Banking Report is the first study of its kind to assess customer experience (CX) with national banks, regional banks, and credit unions. More than 4,000 banking customers were surveyed during July 2017. Using its proven model, ForeSee is able to quantify customer satisfaction with a variety of banks and touchpoints, prioritizing for clients the changes that will have the greatest business impact. ForeSee works with 8 of the top 10 banks and half of the top 50 retail banks in the world.
Download the full report here.
ForeSee pioneered customer experience intelligence in 2001 and has become a recognized leader in Voice of Customer (VOC) solutions. The award-winning ForeSee CX Suite helps more than 2,000 companies worldwide transform their VOC programs into a strategic business discipline that delivers economic impact. Only ForeSee offers a rigorous scientific approach to customer experience measurement, access to an unmatched 200 million benchmarked experiences, and actionable insights from a team of 200 expert analysts that give certainty to CX improvements. ForeSee is headquartered in Ann Arbor, MI and has offices in New York; Washington, DC; St. Louis; Cleveland; San Francisco; Vancouver; and London. For more information, visit www.foresee.com.