Attractiveness of personal branch banking is rapidly fading after the pandemic
Taipei, Taiwan, March 22, 2021 /PRNewswire/ —
- 71 percent of Taiwanese consumers prefer to use digital channels to get in touch with their bank in financial difficulties.
- 31 percent of Taiwanese prefer to communicate via their mobile banking app; 22 percent prefers internet banking.
- 24 percent of Taiwanese rather settle only one primary bank with another 40 percent say they “somewhat agree” that this is their preference.
That’s according to a recent survey by global analytics software company FICO 71 percent of Taiwanese consumers prefer to use digital channels to get in touch with their bank in financial difficulties. The survey conducted in December 2020during the peak of the global COVID-19 pandemic, shows the willingness of consumers to embrace digital banking and the opportunities that exist for banks to evolve their offering.
The high smartphone penetration in Taiwan meant that 31 percent of Taiwanese preferred to communicate about emergencies via their mobile banking app; 22 percent wanted to use internet banking; 11 percent prefer phone banking; 5 percent are communicated via email; and 2 percent wanted to use virtual conferencing technology.
“The risk of infection and social distancing requirements made branch visits less attractive last year and accelerated the shift to digital banking channels worldwide.” called Aashish SharmaRisk lifecycle and decision management lead for FICO in Asia Pacific. “Being able to provision and manage numerous channels according to customer preferences and deliver a seamless and engaging experience is a challenge that will remain. Investing in customer management and communication tools that span these channels and product silos and can provide personalization and enhanced decision making is key to digital banking success.”
Customer attitudes towards new banking technologies such as debt collection automation can lead to some interesting preferences and behaviors.
“It’s worth noting that when times are tough, some customers prefer to solve the problem with intelligent, automated online services like ours FICO® Customer Communication Services (CCS) to avoid the embarrassment of speaking to an agent about outstanding loans. If customers choose digital channels during tough times, their toughest, I think we can expect the physical store business to continue its decline.” explained Sharma.
Importance of maintaining banking relationships
Banks still have a data and relationship advantage compared to fintech challengers. That’s what the poll showed Asia Pacific, one in three consumers preferred to have one bank do all their banking. in the Taiwan that was slightly lower at 24 percentwith another 40 percent say they ‘agree somewhat’ They only want to do business with a primary bank.
“Managing multiple bank accounts or financial products with different lenders can often be a complex, time-consuming and costly process for the average banker,” said Sharma. “Today’s digital banking users are looking for more control and visibility into their finances.”
When asked about their willingness to try a fintech or challenger bank, 22 percent of Taiwanese said they were inclined to consider a competitor with another 47 percent relatively open to the idea.
“To consolidate and strengthen core bank commitments, lenders must offer digital banking capabilities that compete with challengers to ensure the durability and viability of long-term customer relationships.” added Sharma.
The most attractive reasons to switch banks
When asked why they would switch to a competitor, 42 percent of Taiwanese consumers said their main reason is to ensure increased personalization and control in their digital banking service. The survey defined this as the ability to view transaction history, update personal information, reset passwords, and other such features. Interestingly, personalization and control were also the main reasons for the switch Asia Pacific (31%).
Other top switching drivers versus Asia Pacific became; the ability to control a payment card (set transaction limits, block/unblock); the ability to set up recurring payments; and improved security features such as biometrics and two-factor authentication.
FICO’s Driving new experiences in digital banking Survey was conducted in December 2020 with an online, quantitative survey of 5,000 consumers above ten countries and regions Conducted by an independent research firm on behalf of FICO. The countries studied were Australia, Hong Kong, Indonesia, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand and Vietnam.
FICO (NYSE: FICO) supports decisions that help people and businesses around the world thrive. Founded in 1956 and based in Silicon Valley, the company is a pioneer in using predictive analytics and data science to improve operational decisions. FICO holds more than 195 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for companies in financial services, manufacturing, telecommunications, healthcare, retail and many other industries. Businesses in more than 120 countries use FICO solutions to do everything from protecting 2.6 billion payment cards from fraud to helping people get credit and making sure millions of airplanes and rental cars are in the right place at the right time are.
Learn more at www.fico.com.
Join the conversation on Twitter at @FICOnews_APAC.
FICO is a registered trademark of Fair Isaac Corporation in the US and other countries.
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