Engageare officially released its annual report “Engage 2023: Customer Engagement in Banking, Annual Trends Report, with research fielded by Infoserv. In last year’s report, Coronavirus concerns stayed the focal point of the audience. While it is as yet a reality, it is no lengthy the main worry for most banks and credit associations. Notwithstanding, this worry has been supplanted with another monetary vulnerability including expansion, increasing loan fees, a cooling real estate market and the conceivable outcomes of a downturn are all essentially impacting the way of behaving of banks and credit associations.
As anyone might expect, large numbers of the worries noted by credit associations and banks during last year’s report are basically the same in the current year’s research.However, there are a few tremendous contrasts that the business ought to focus on particularly as we enter 2023 and as foundations start settling brilliant courses of action. Underneath I have incorporated a couple of the features from the current year’s report, and afterward likewise a correlation with a portion of the discoveries in the 2022 report when contrasted with the latest discoveries in the 2023 report. The creator of the report is accessible for a meeting assuming you might want to dive more deeply into the discoveries. Moreover, the creator is likewise accessible to draft contributed discourse giving an outline of the outcomes and their bits of knowledge with respect to the discoveries and how banks and credit associations can carry out these discoveries.
A few things from the 2023report are as below:
- At the time of recession, relationship banking and financial planning services should be a focus
- 84% of consumers said they think the U.S. economy is in a recession or would be in one soon; compared to 91% of banking professional respondents who believe the same.
- Improving digital adoption as a key to overcoming workforce challenges.
- More than half of the banking professionals surveyed cited digital adoption as their top digital priority for 2023.
- Banks and credit unions must optimize staffing to deliver superior customer engagement
- More than 50% of the banks and credit unions surveyed expressed the need for additional staff to deliver strong customer engagement; a 66% year-over-year increase
- Bank and credit union customers are satisfied with their FIs, but believe more engagement work is needed
- While 78% of consumers are satisfied with their current primary financial institution (PFI) and the support they receive, only 54% of consumers agree that their PFI tries to engage with them to understand their needs, and even fewer — 43% — say there is someone at their bank or credit union they talk to when they need answers to financial questions.
The primary concerns indicated in the 2022 report in regards to consumer behavior included:
- Customers were skeptical and indicated they were losing trust in their financial institutions.
- Customers indicated their expectations for digital capabilities and what FIs were providing were diverging.
- However, banks and credit unions both listed their largest concern was staffing issues and being able to hire and maintain quality staff members.
While some of these concerns remain in the 2023 report, I think you will find it of interest many of the concerns have shifted and include:
- Fewer consumers are sticking to a single primary financial institution (PFI),
- Consumers are relocating, and
- Consumers want to be met where they are — and that’s not (only) online.
“In today’s challenging economic climate, financial institutions need to be closely attuned to the changing needs and preference of their customers,” said Caroline Platkiewicz, Senior Marketing Manager, Engageware. “In addition to our annual survey of banking professionals, we complemented our findings with a proprietary survey of U.S. banking consumers to understand their attitudes, behaviors, and expectations of their primary financial institution. In doing so, our aim is to provide community bank and credit union leaders with data and insights to better equip them in their customer engagement strategy and planning for 2023. When FIs create avenues for their customers or members to engage, they are more likely to entrust their PFI with important financial decisions, thereby positioning the bank or credit union for long-term success.”