"Show Me [What to Do With] The Money!" Nearly 70% of Consumers Want Banks to Tell Them How to Grow and Save Their Money

Sopra Steria’s 2023 Digital Banking Experience Report Reveals How Banks’ Focus on Keeping Up With Digital Challengers is Distracting Them From What Consumers Actually Want: Personalized Financial Recommendations

NEW YORK--()--Sopra Banking Software (SBS), the global fintech company creating a new breed of banks to power financial services in every industry, announced the consumer-focused findings of Sopra Steria’s second annual Digital Banking Experience (DBX) Report. This year’s report, produced in partnership with Forrester and IPSOS, reveals that consumers expect their banks to play a bigger role in their financial journeys. Rather than simply store their money, 69% of consumers are looking to their banks for personalized financial advice to help them save more money, and grow it in the process.

Consumers are accustomed to receiving personalized recommendations any time they’re online. Netflix surfaces movies and TV shows that complement users’ viewing habits. Spotify suggests music and podcasts, Instagram shows ads for relevant products and brands, and TikTok confidently curates users’ entire feeds on their behalf. With 36% of consumers claiming to check their bank account(s) at least once a day, much like they would their social media and entertainment channels, they have begun expecting their banking experiences to be personalized, too.

Banks that are willing to prioritize personalized financial recommendations over some of their other digital initiatives are more likely to acquire new customers and retain existing ones,” said Eric Bierry, CEO of Sopra Banking Software.

Sopra Steria and IPSOS surveyed 12,500 bank customers in 14 countries, including 1,000 U.S. respondents, to better understand consumers’ banking needs and how banks are stacking up. The resulting Digital Banking Experience (DBX) Report reveals a divergence between banks that are focusing on what consumers actually want, and those offering what they think consumers want.

Among the findings:

  • Banks should put more energy into offering personalized financial recommendations. Despite the ease of communicating with banks about account balances and basic transactions through digital channels, consumers say banks drop the ball when it comes to doling out tailored financial advice based on their unique financial behaviors and histories. Only 26% of consumers say they are completely satisfied with the level of personalization offered by banks’ digital tools. And nearly half (41%) of consumers felt that when they were in contact with banks, they did not want to help them earn more money.
  • Consumers are more excited about offerings that help them manage their money than the advanced technology and currency offerings that banks are focused on. Consumers are simple – they want services that make them money and guide their financial investments. They are not as interested in the high-tech capabilities banks have been focused on. Seventy-six (76%) of consumers are interested in loyalty programs on credit cards that earn them money, and 67% would be interested in tools that offer alerts on financial problems like overdraft risks and recommendations for day-to-day money management.
  • Consumers would rather connect with their banks digitally than visit them in person. Fifty-six percent (56%) of consumers say they most frequently communicate with their bank via a mobile app, followed by a website (49%). And consumers are communicating often with their banks on these digital channels, with 11% of consumers saying they check their bank account two or more times a day.
  • Consumers aren’t ready to completely replace cash, but they want alternative digital payment options. Nearly half (46%) of consumers do not want to totally replace cash with digital payments, but a majority of consumers (68%) are interested in consolidating all of their payment formats into one application and 58% are open to completely replacing physical bank cards with mobile payments.

Banks have massive amounts of data about customer banking trends and behaviors, giving them an obvious competitive edge over emerging fintechs and neobanks. While banks see these digital challengers as their biggest competitors, often their most immediate threat is other traditional banks who transform quicker—or better—than them, to meet actual customer demand,” continued Bierry.

The complete DBX report offers a direct view into how banks are approaching digital transformation and reveals the obstacles that are affecting their ability to meet consumers’ financial expectations. In addition to its consumer findings, Sopra Steria also partnered with Forrester to survey 792 senior banking leaders, responsible for credit and lending, customer experience, digital banking, open banking initiatives, payments and the technology stack at banks in 50 countries. This year’s report and supporting materials are available for download here.

Sopra Banking Software is part of the Sopra Steria Group (EPA: SOP), which has been supporting financial institutions since 1968. With the agility of a fintech company and the support of a large enterprise, SBS is changing the way that everyday consumers and businesses experience banking and finance.

About Sopra Banking Software

Sopra Banking Software is the partner of choice for more than 1,500 financial institutions worldwide. The rich variety of our solutions, the strength of our conviction and our passion for innovation enable us to support our clients daily and in their future projects, as well as in their goals regarding financial inclusion. Our customers, based in over 80 countries around the world, benefit every day from our technologies and software, as well as the expertise of our 5,000 employees.

Sopra Banking Software is a subsidiary of the Sopra Steria Group, a European leader in consulting, digital services, and software development. With more than 47,000 employees, the Sopra Steria Group generated a turnover of €5,1 billion in 2022.

For more information, follow us on LinkedIn, Twitter & Instagram or visit soprabanking.com


Kieran Powell