Consumers Still Concerned by Stability of Challenger Banks, Fujitsu Research Finds
- Growing consumer interest in challenger banks tempered by concerns about long-term stability
- Consumers increasingly demanding innovative technologies to power banking and financial services
- A consistently positive digital experience and online access to services have become decisive factors for customers; mobile banking and biometric authentication seen as crucial technologies in enabling new banking services
The study, which surveyed 22,640 customers globally, found that a positive digital experience and good online services are a key determinant of where customers choose to bank today, with 53% seeing it as a high priority. Almost a third (30%) plan to open an account with a bank that offers better digital services in the next six to 12 months, while 28% plan to switch to using a challenger bank in the next five years, unless traditional banks can provide the same level of service.
The study confirms growing consumer awareness of ‘challenger’ financial services providers, which is helping to shift consumer attitudes towards the privacy of their data, the security of their money and to influence the choice of security technologies currently used by banks. It also confirms that established banks must better leverage data and analytics to retain their customers.
Underscoring the digital trend, 44% of consumers plan to perform all their banking needs through mobile devices, without having to interact with a human bank teller, by 2024. Equally, 44% want their bank to be more innovative in their use of technology, while a quarter (24%) believe their bank simply lacks the technology and innovation to give them the services they want – opening up opportunities for innovative new players.
Banks built on digital
The public is predominantly positive about technology underpinning their banking experiences in the future, with 66% anticipating that, in the next five years, technology will play a bigger role in how they pay for things, manage their finances and transfer money. Today, Fujitsu’s survey found that mobile banking (48%) and biometric authentication (41%) are the most important technology-enabled banking services customers are looking for.
Wilhelm Petersmann, Head of Financial Services, Germany, Switzerland and Austria at Fujitsu comments: “Fujitsu’s survey of attitudes towards consumer banking clearly shows experiences and expectations have changed radically in the past five years, due to digital technology. To prosper, traditional banks must transform their operations to improve customer satisfaction, using data, analytics and AI to respond to customer expectations. Cutting edge technologies will create new ways for traditional banks to deliver customer value through creating seamless digital and in-person experiences.”
The survey also confirmed that despite enormous interest in digital banking, consumers still expect humans to play a vital role in their banking services. This is especially the case when resolving an issue with their bank, where 59% expect to deal with a person, rather than technology. Understandably, this figure rises to nearly three quarters (71%) of over 55s. In addition, 56% say they are more likely to deal with a bank if it has a high street branch. This demonstrates that customers want the best of both physical and digital worlds. In fact, 57% are concerned about access to cash if ATMs close in the future, while just under half (49%) are concerned about the closure of bank branches in the next five years.
Technology is driving banking choices
When considering the technologies that would most attract them to financial services providers, 51% of consumers said using biometrics for secure identification and 47% look forward to using 5G to improve the speeds of their network connection on mobile devices.
With customers becoming as discerning as they are demanding when it comes to banks using technology to manage and safeguard their money, banks must evolve and transform at the speed of customer expectations or face extinction, find the Fujitsu report. Sticking to legacy technologies puts banks at risk of being consigned to history if they do not respond to fast-changing customer demands.
“The traditional banking sector is at a future-defining junction to modernize and meet the public’s expectations. Banks are required to adopt the right technology frameworks to tackle their legacy application modernization challenges, capitalize on agility with hybrid and multi-cloud computing, and strengthen their data and cyber security resilience to reinforce and retain customer trust,” comments Romain Briard, Banking & Financial Services Industry Executive at Fujitsu America.
Conscious of the pressures on financial institutions to digitally transform to meet customer expectations, Fujitsu leverages the power of data and technology to help financial service providers deliver relevant and consistent digital experiences across all channels2
. Recognized as a global leader in delivery, support, and IT management, Fujitsu works in close partnership with banks and insurers to co-create solutions that enable agile and flexible service delivery.
Notes to editors
1 From demanding to discerning: Technology and the new banking customer, a research report from Censuswide produced in association with Fujitsu. (https://marketing.global.fujitsu.com/new-banking-customer_reg.html)
2 For more information about Fujitsu for financial services visit https://www.fujitsu.com/uk/solutions/industry/financial-services/
Fujitsu is the leading Japanese information and communication technology (ICT) company, offering a full range of technology products, solutions, and services. Approximately 132,000 Fujitsu people support customers in more than 100 countries. We use our experience and the power of ICT to shape the future of society with our customers. Fujitsu Limited (TSE: 6702) reported consolidated revenues of 4.0 trillion yen (US $36 billion) for the fiscal year ended March 31, 2019. For more information, please see www.fujitsu.com.
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Date: 22 April, 2020