As Australian banks rush headlong to close branches and take their businesses online, new research shows that the digitisation of banking is a double edged sword.
Digital customers are the most satisfied but the least loyal, according to a survey of Australian banking customers conducted by researcher OmniPoll for business software company Pega.
The research found that the number one driver of satisfaction is easy interaction with the bank.
Digital customers – defined as cashless, regular users of online banking and preferring to pay with their phone – are the most satisfied, with 53 per cent saying they are “very satisfied” with their bank.
Forty-five per cent of “digitals” say they have recommended their bank in the past six months.
But 49 per cent of them have considered switching banks in the past six months.
Jonathan Tanner, Pega’s industry principal for financial services and insurance in Asia Pacific said reasons for this lack of loyalty include a concern that banks do not offer the best prices or rates, and do not reward loyalty. And digitals are more confident than “traditionals” about switching.
One the other hand, the traditionals (who prefer to visit a branch) are both the least satisfied and the most loyal. Only 33 per cent said they are “very satisfied” and only 23 per cent said they had recommended their bank in the past six months.
They are looking for more personalised service and, increasingly, they are not getting it.
Another bugbear for all types of customers is that their bank is not good at omni-channel service – integrating branch, phone and online interactions.
Thirty-seven per cent of respondents said they interact with their bank at least once a year with queries, claims or other issues. More than half (54 per cent) of these customer interactions result in an unsatisfactory outcome for the customer.
“They might be required to make a phone call or visit a branch after an online interaction could not be completed, waiting times might be too long or they might be transferred to another customer service staff member and have to start the interaction all over again,” Tanner said.