Industry News

Consumers prefer to receive new services from their existing bank, but say they would be open to changing firms to gain better service and more value

By James Langton |

 

Bank customers are increasingly open to dealing with fintechs in pursuit of better services, such as advice and help with personal finance, suggests a report published Wednesday by Montreal-based CGI Group Inc.

The report, Today's Financial Consumer: Open for Business, covers the results of CGI's 2017 global financial consumer survey.

According to the report, bank customers generally prefer to receive new services from their existing bank, but they are increasingly open to changing firms in order to gain better service and more value from their financial firms.

More than half of respondents, "are open to using third-party service providers for everyday banking services such as ‘advice on financial products' or ‘resolving a fraud or security issue'," CGI says in a news release.

Indeed, over the past 12 months, there has been a 15% decline in the proportion of customers that prefer to receive new services from traditional banking firms, the survey finds.

Increasingly, clients are open to dealing with non-traditional firms, such as fintechs, and they are also growing more comfortable with other types of firms having custody of their money. Forty per cent of survey respondents say that they aren't concerned with where their money is stored, as long as they have access to it.

Additionally, the survey finds that two-thirds of consumers, "feel they have lost a personal connection with their bank," yet, at the same time, a similar proportion also says that having a long-term relationship with their bank 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)," CGI suggests.

"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," it says.

"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," CGI reports.

Read: More needed to accelerate fintech's growth: Competition Bureau

Security remains a top concern for consumers, according to the survey. This creates "a competitive advantage for banks that invest in greater protection capabilities, as well as in building a reputation for security," CGI says.

"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," says Kevin Poe, vice president, global retail banking, CGI, in a statement.

Photo copyright: macfromlondon/123RF