Report underscores increasing consumer expectations for enhanced digital capabilities, with the emergence of fintech disruptors offering more personalized and convenient digital experiences
EPAM Continuum, the integrated business, technology and experience consulting practice of EPAM Systems, , a leading digital transformation services and product engineering company, announced the release of its fourth annual Consumer Banking Report, revealing ongoing satisfaction with banks globally amid rising consumer expectations for digital capabilities and personalization.
The 2024 survey of adults across key banking geographies, including Australia, Canada, Germany, Hong Kong, Italy, Saudi Arabia, Singapore, the U.K. and the U.S., found that overall satisfaction with primary banks remains high – driven largely by good customer service, reputation and local presence. However, the research also found that banks now face ever-rising competition from fintech disruptors and an increasing demand to provide more personalized digital experiences. Additionally, respondent feedback shows consumers crave the best of both worlds – human touch and digital integration.
“In the face of rapidly changing market dynamics, marked by high interest rates, inflationary pressures and market volatility, banks have managed to uphold elevated levels of trust and customer satisfaction,” said Balazs Fejes, President of EU and APAC Markets at EPAM. “To remain competitive in this evolving climate, banks must embrace automation for improved personalization and engagement across all customer channels, leveraging AI for operational efficiency and forging technology partnerships to drive innovation and cost reduction.”
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Key emerging themes:
- Trust in banks remains high (79%) when it comes to investing money, handling finances and keeping data safe. However, 30% (rising to 37% for those 18-34) are still considering changing banks in the next 12 months, lured by better rates and rewards elsewhere.
- Usage of bank branches remains high, with 86% visiting in the past year, mainly for deposits and cash access. This is despite respondents’ awareness that most services are available digitally, revealing a lingering discomfort with moving to fully digital or remote banking.
- Instant payments (78%) and digital access to a banker or concierge (64%) are deemed the most important services banks can offer over the next three years, with respondents showing an appetite for more financial advice and money management support from banks.
- Uptake of AI banking tools remains low (21%), but satisfaction is high among those who have used these tools (96%). However, 57% would not feel comfortable acting on AI financial recommendations, with discomfort being the highest among older demographics.
- Three-quarters of consumers (74%) use an average of two to three financial providers in addition to their primary bank, especially for credit cards, savings and checking or withdrawals, with 25% using third-party money management apps.
Insights from EPAM’s 2024 Consumer Banking Report reflect findings from a recent 2024 Forrester banking predictions report. The Forrester report states, “In 2024, we see risks to banks retaining deposits as they strain to maintain profit margins. Likewise, hot yet unproven AI technologies could cause as many new problems as solve old ones. Regulators will have to (re)act. Banks in the US will have to focus on open banking as regulators finally put it on the agenda. Despite the knock-on effects of trepidation in capital markets, intrepid fintechs will create niche products and journeys for niche segments.” 1
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