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Banking on Change: Consumers Drive Digital Charge in Financial Services

Fujitsu UK & Ireland

News Facts:

  • More than a third of European consumers would move bank or insurer if they didn’t offer up-to-date technology to aid interaction
  • Nearly a third are already embracing mobile payments, while a fifth are already using wearables and crypto-currency to pay
  • Almost a fifth would buy banking or insurance services from challengers such as Google, Facebook and Amazon
London, May 04, 2016

Fujitsu today releases a Europe-wide study highlighting the shift in consumer interaction with their banks and insurers, as digital-first demand continues to drive a new pace of change. According to the 7,000 consumers who took part in the Fujitsu-commissioned survey, digital plays an increasingly prominent part in their banking and insurance interactions, with more than a third (37%) threatening to leave their provider if they don’t offer up-to-date technology.

While traditional payments still remain popular - 44% of consumers still use cash to pay daily - new digital payment methods are coming to the fore. Consumers are showing they are open to innovative services to make their lives easier, with 32% already embracing mobile device payments, while 22% have adopted wearable technologies and 20% crypto-currencies, the latter driven by Eastern Europe usage where 44% say they use the technology.

“Today’s customers are no longer guarded,” said Francois Fleutiaux, Senior Vice President and Head of Sales, EMEIA, Fujitsu. “When it makes interaction more convenient they are willing to embrace innovation. They may not know where they need it until it is offered, but this is where technology comes to the fore - it is the engine that is driving consumer expectations forward and the financial services sector has to live up to this new pace of change.”

This progressive consumer attitude has also led to a shift in expectations from Financial Service providers and a willingness to buy more services from them; offering a wealth of opportunity to current providers. One in three said they would consider buying energy for their home; the same figure agreed on personal data storage, while 30% said they would purchase broadband services from their bank or insurer.

Yet with this progressiveness comes a warning bell to traditional providers. Already a fifth of respondents said they would buy banking or insurance services from potential disrupters like Google, Amazon or Facebook.

This digitally open attitude also extends to day-to-day interaction with banks. Online banking is the most popular channel across Europe, with three in four using it at least once a week. Yet, while traditional channels are declining in comparison, they still represent a huge swath of consumers; 34% visit their bank branch at least weekly, while an even higher 36% use the telephone to speak with their banking provider.

“While there is no doubt we are moving towards a digital world, this shouldn’t and doesn’t mean that traditional channels are ‘dead’,” said Fleutiaux. “For consumers, digital simply means a new way to communicate whether that be their bank, insurer or their favourite retailer - in whatever way suits them. ‘Traditional’ methods and face-to-face interaction still have a place in modern-day banking and insurance. Providers that will be successful will be the ones who modernise their back office to integrate these various channels to create ‘banks and insurers of the future’ that provide their customers with all options.”

Consumer attitudes to innovation have also impacted data sharing. Across Europe, 97% of those surveyed said they were happy for banks or insurers to use their data to offer them a wider range of services; a huge shift in consumer mindset.

  • Almost three in five (59%) would be happy for their bank or insurer to use their data to lower their mortgage premium
  • Nearly half (47%) of consumers would allow banks or insurers to use their data to recommend relevant products and services
  • More than two in five (44%) want their data used by banks or insurers to keep them informed of their spending habits and offer relevant advice
  • More than a third (36%) would like their data used by banks or insurers to amend their credit rating

“The Financial Services sector must continue to build on its digital success and commit to on-going innovation. To be successful – and stand up to increased competition – it must invest in modernizing its own infrastructure and participate in industry-wide collaboration to drive innovation,” said Fleutiaux. “Working with the industry and suppliers, banks and insurers can ensure new channels, services and technologies see mass adoption. Ultimately, consumers want evolution; the modern-day Financial Services sector must come together to boldly embrace this, or risk being forgotten.”

Read the full report at: http://www.newpaceofchange.com

Notes to editors

The study

The study into the maturity of financial services across EMEIA was commissioned by Fujitsu and carried out by independent research company, Coleman Parkes Research, between November and December 2015. The study was split into two core activities:

  1. 7000 online consumer surveys were completed by a nationally representative sample of each population across UK, France, Benelux (Netherlands, Belgium and Luxembourg), Spain, Germany, Switzerland and Eastern Europe (Poland, Czech Republic and Slovenia) to understand consumer’s habits and their views and opinions towards current financial services.
  2. In-depth interviews with 45 senior business decision makers (C-Level, minus 1 and 2) of large enterprise firms in the finance sector (Retail Banks, Investment Banks, Insurance firms) across the same countries to gain further insights into this issue.

UK statistics of interest

  • 73% online bank at least once a week, 60% visit self-service or an ATM; 25% visit a branch in the same period
  • A higher than average uptake of both online banking (77%) and automated self-service (56%) predicted by UK consumers in five years’ time
  • UK consumers are more willing [than the rest of Europe] for banking and insurance providers to use their personal data to offer new services including:
    • Lowering mortgage premium (69%)
    • Recommend relevant products or services (53%)
    • Keep you informed or spending habits (50%)
    • Amend your credit rating (44%)
    • Help track and advise on your health and fitness and offer discounts on your insurance premium (38%)
  • 36% would buy energy for their home from their bank or insurer, 32% personal data storage, 34% broadband, 32% mobile phone contract and 34% home telephone – all higher than the EU average
  • 21% would buy banking services from disrupters such as Amazon, Google and Facebook, 23% would buy insurance services from them
  • 39% would switch bank or insurer if they didn’t offer up-to-date technology
  • 42% use contactless cards, 20% use mobile payment apps, 10% use wearables, 79% use online payment systems (e.g. PayPal)
  • UK consumers use both Chip and PIN (56%) and contactless payments (17%) more than the average European on a weekly basis
  • More than a third (35%) have never switched bank

About Fujitsu

Fujitsu is the leading Japanese information and communication technology (ICT) company offering a full range of technology products, solutions and services. Approximately 156,000 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 4.7 trillion yen (US$41 billion) for the fiscal year ended March 31, 2016. For more information, please see http://www.fujitsu.com.

About Fujitsu in the UK & Ireland

Fujitsu employs over 14,000 people in the UK & Ireland, with total revenues exceeding £1.8 billion. Offering an integrated product and service portfolio, we deliver consulting, applications, technology products, systems integration and managed services, including cloud-based solutions, for customers across both public and private sectors, including retail, financial services, telecoms, government, defence and consumer IT. For more information, please see http://uk.fujitsu.com.

Kelly Bowen

Phone: Phone: + 44 (0) 20 7861 2800
E-mail: E-mail: teamfujitsu@harvard.co.uk
Company:Harvard PR

Graham Goulden

Phone: Phone: + 44 (0) 843 354 9568
E-mail: E-mail: graham.goulden@uk.fujitsu.com
Company:Fujitsu UK & Ireland

Date: 04 May, 2016
City: London

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