One in two bank consumers are open to sending
their business to non-bank service providers, according to CGI
global research
MONTRÉAL, Jan. 10, 2018
/PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB) released a new
report, "Today's Financial Consumer: Open for Business," covering
the results of its 2017 Global Financial Consumer Survey. Now in
its fourth year, the survey assesses and provides insights into how
consumers view their primary financial service providers, along
with what consumers want and expect from their providers in the
future. This year's survey includes the views of 2,250 respondents
across 9 countries.
Overall, the survey's findings show an increasing willingness
among consumers to move to financial service providers that offer
more value-add services, such as advice, rewards and personal
finance management. The findings highlight the urgency for
traditional banks to accelerate their service and innovation
agendas to retain and grow profitable customer relationships in the
face of increasing competition from nimble and innovative bank and
non-bank competitors. Incumbent banks have an opportunity to
accelerate innovation through partnerships with third-party
providers, including FinTechs, as well as established technology
firms, to take full advantage of new opportunities and rising
consumer expectations.
Security remains a top concern for consumers, creating a
competitive advantage for banks that invest in greater protection
capabilities, as well as in building a reputation for security.
Further, the survey confirms the growing opportunity for banks to
provide a holistic channel strategy that brings together digital
and personal services.
Consumers remain interested in receiving new, innovative digital
services, ranging from 33% who perceive value in robo-advice to 80%
who are interested in services that enhance protection from fraud
and identity theft. However, provider preference is shifting among
consumers. While a majority of consumers still prefer to receive
new services from their current primary bank, in just 12 months,
there has been up to a 15% decline in the number of consumers who
prefer to receive new services from traditional bank providers.
More strikingly, the survey confirms that over half of respondents
are open to using third-party service providers for everyday
banking services such as "looking for advice on financial products"
or "resolving a fraud or security issue."
Consumers continue to put a great deal of trust in traditional
retail banks, with 61% holding them ultimately accountable for
moving, storing and protecting their money. However, traditional
banks face challenges as the banking marketplace becomes more open
to new competitors, enabling non-bank financial providers to
compete directly with incumbents. Incumbent banks face the
challenge of protecting their margins from non-bank competition
that operate with new business models, while bearing the costs of
maintaining their traditional banking infrastructure. Further,
survey findings indicate that consumers continue to hold
traditional banks responsible for anything that goes wrong, even
when they are using a third-party service provider.
Other key survey findings include:
- 73% of consumers are open to using a single bank account for
all payments linked with a mobile app without having the option of
using alternative accounts
- 40% of consumers don't mind where their money is stored as long
as they have access
- 43% of consumers would rather have a single mobile payments
service across accounts rather than one per account
Two out of three consumers feel they have lost a personal
connection with their bank, yet two out of three consumers also
feel long-term relationships with their banking partner is
important. This dichotomy creates a significant opportunity for
banks that are ready to pursue customer-centric
strategies—strategies that combine relevant and personalized
digital services with personal services through both in-person
(branch) and remote channels (phone, video, and chat). The
opportunity and urgency to respond is especially pressing given
that more than half of consumers are willing to switch to new
providers for value-add services.
"With the advent of open banking fast approaching, leading banks
are leveraging their strengths in terms of customer access and
trust while pushing into new innovative services through
partnerships with third-party providers, including both FinTech
startups and established technology firms," said CGI's Kevin Poe, Vice-President, Global Retail
Banking. "Banks are increasingly relying on CGI to help them
prepare for a digital-first future. Through partnership,
innovation, and service excellence, CGI transforms legacy
technologies and operations and supports bank in embracing the
exciting opportunities that are revealed as they move towards truly
customer centric strategies."
Download an overview of the report, Today's Financial Consumer:
Open for Business, at cgi.com.
About CGI
Founded in 1976, CGI is the fifth largest
independent IT and business consulting services firm in the world.
With approximately 71,000 professionals worldwide, CGI delivers an
end-to-end portfolio of high-end IT and business consulting
services, systems integration and IT and business process
outsourcing services. CGI's client proximity model, best-fit global
delivery network, and intellectual property solutions help clients
accelerate results and digitally transform their organizations.
With annual revenue of C$10.8
billion, CGI shares are listed on the TSX (GIB.A) and the
NYSE (GIB). Website: www.cgi.com.
SOURCE CGI Group Inc.