Cisco Study: Consumers Want a More Seamless and Personalised Customer Experience from their Bank

Results show 69% of U.K. consumers would provide more private information in exchange for more personalised service, higher security against identity theft, and greater simplicity in managing their finances

Cisco today announced the results of the Cisco Customer Experience Report focused on retail banking. The global report examined consumers’ desire for a banking experience that is more personalised to help simplify the management of their finances over multiple channels, including online, mobile phones, telephones, video conferencing and bank branches. It also examined views about the privacy of their personal information and the value of financial management tools used in their daily lives.

Consumers globally identified the most important attributes when interacting with their financial institution or financial advisor as: availability (63%), competence (65%), and efficiency (68%). Consumers indicated a willingness to exchange more details about their financial habits and having banks be more active advisors in exchange for greater protection from identity theft (83%), increased savings (80%), personalised service (78%), and greater simplicity (56%) in managing their finances. Only 54% of consumers expressed a desire for automated systems to provide financial advice or recommendations, while 50% indicated that they would be comfortable with location-sensitive recommendations delivered to a mobile device.

The majority (71%) indicated being comfortable with the increasing use of virtual communications in addition to in-person financial conversations, with emerging economies slightly preferring on-demand access to expertise (53%) over speaking with a particular individual which was favoured in developed economies (59%).

Overall, the report demonstrates consumer interest in more personalized, timely and valuable connections with banks; the type of connections made possible by what Cisco describes as the Internet of Everything (IoE). The Internet of Everything brings together people, process, data and things to make networked connections more relevant and valuable than ever before. Cisco recently released an Internet of Everything economic analysis that identified banking and insurance as industries positioned to capture as much as 9% of the $14.4 trillion in bottom-line value that will be created over the next decade by the Internet of Everything innovations.

Highlights and Key Facts:
The global report, conducted in early 2013, includes responses from 1,514 consumers and 405 bank professionals across 10 countries. The report studied the views of how and when consumers want to engage with their banks across multiple channels for activities ranging from account monitoring to acquiring financial advice.

Majority (76%) of U.K. consumers’ desire more simplified personal financial services

• Personalized services consumers want from their bank: 81% indicated a desire for more identity theft security, 81% wanted advice to increase their savings, 73% requested more financial education, and 53% wanted an assessment of their financial status as compare to other clients.
• Banks’ ability to deliver personal financial services: Only 42% of U.K. consumers feel their bank has enough information to offer them personal services, while 45% of bankers feel they have enough personal information on their customers.

U.K. consumers’ willingness to share private information with bankers

• Fingerprints for more security: 56% of U.K. consumers would provide their bank with a fingerprint or other biometrics to verify financial transactions to protect the consumer against dangers such as identity theft. Globally 61% of consumers would share biometric data, with Japanese consumers least likely with only 33% and Chinese consumers are most likely at 94%.
• Simplified money management: 50% of U.K. consumers would provide additional personal information in order to receive greater simplicity in managing their finances.
• However, keep personal information in the vault: 68% of U.K. consumers would not want their bank to share their personal information outside the bank, even if it improves quality of service in other areas. 72% of consumers in Russia and Germany were unwilling to have their bank share personal information.

Majority of U.K. Consumers virtually connected to their bank

• Willingness for virtual meetings: 68% of U.K. consumers are comfortable communicating with their financial provider using technology (such as texting, email or video) instead of seeing them in person. Globally, 7 in 10 consumers and 92% of bankers are comfortable communicating using virtual technology.
• Even mortgages and loans could be managed virtually: Nearly half of consumers in U.K. (48%) would be comfortable entirely securing a loan or mortgage using technology like video to communicate with their bank.
• Computers preferred to smartphones for video: Only 23% of U.K. consumers would favour a smartphone for video conversations with bankers, with most (77%) preferring laptop or desktop computer.
• Physical presence is still important especially to capture new customers: 60% of U.K. consumers would open an account with a bank that is completely virtual if it offered the best and more secure services — Compared to 60% of consumers globally who would open accounts with virtual banks.

For more information about the Cisco research in retail banking, please visit Cisco Customer Experience Report website.