Sticking with the theme of building the Bank of the Future, this survey validates that while online banking is servicing customers well, it fails to provide for the required emotional connection that drives loyalty.
Convenience channels are diminishing the need to visit branches to conduct routine banking transactions. In fact, nearly one-third of customers do all of their banking outside of the brick-and-mortar facility. While convenience has become a requirement among retail banking customers, financial institutions run the risk of becoming distanced from their customers and, more importantly, losing out on the opportunities that face-to-face contact provides – the chance to impress customers and show appreciation for their business.
Source: CNW Group
This telling comment suggests there is no trust built through online.
“Online banking is convenient, but an excellent online offering cannot
replace a positive in-branch experience,” said Charles Schade, senior director of research at J.D. Power and Associates. “Customers continue to rely on face-to-face contact to build a trusting relationship. That personal interaction cannot be duplicated online or anywhere else but at the bank branch.”
My immediate reaction is to question the survey as being skewed by a Bank that relies on service orientation with extended hours, such as TD Bank for example. However the survey group shows not apparent indication of skew.
Based on responses from 12,053 Canadian retail banking customers, the study includes all the largest financial institutions – banks and credit unions – in Canada. Across the industry, overall banking satisfaction is determined based on six factors. They are (in order of importance): transaction methods; account set-up and product offerings; facility; account statements; fees; and problem resolution.
If this is true, and I believe it is, then we must address the emotional connection online if we are to be successful in retaining loyal customers online, and providing a viable alternative. Meantime branches remain essential.
Here is the complete release. I have requested the chart, and will post upon receipt.
Continue reading “CNW Group: Banks risk alienating customers”
