Youbiquity Finance – 2014

Working together
Youbiquity Finance – 2014
Consumers, channels and changing behaviours
in retail financial services
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Working together
Contents
2
3
Introduction
4
Summary
5
A new era for banks and insurance providers
8
Youbiquity Finance: offer all the channels that consumers want to use
11
Use social media to build customer engagement in finance
14
Drive ease with supported self-service
16
Re-shape the phone channel to deliver answers and relationships
18
Consider biometrics for speed and security
19
Build branch appeal to generate dialogue
21
The UK consumer
22
The French consumer
22
The Spanish consumer
23
Conclusion
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Introduction
Some financial services providers are embracing the explosion in the number of
channels available for interaction with customers. Others are unsure and holding
back. One thing is clear though – there has never been a better time to engage
with consumers, whether for banking or insurance products.
BT Global Services and Avaya wanted to update the Youbiquity Finance research
completed in 2012 and to provide something to help organisations understand
consumers, financial services and the changing marketplace.
Much has happened over the last 2 years: smartphone penetration has risen from
less than 30% to over 60% in the UK, voice recognition services have been used
by half the population and video conferencing is now commonplace.
The new research has been undertaken with 2,017 consumers across
France, Spain and the UK. The sample was taken online, but weighted to be
representative of the public in each of the three markets.
The research, data and views in this report have been prepared in good faith but BT, Avaya and Davies Hickman Partners do not accept
responsibility for any actions or otherwise taken by those acting on the recommendations, advice and content contained in this report.
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Summary
In two short years, the average number of channels used by
consumers to contact their financial service providers has
grown from 4.3 to 6.2, an astounding 44% increase. There has
rarely been a better time for banks, credit card and insurance
companies to use omni-channel strategies to engage with their
customers.
2014
6.2
52% of consumers say they buy more when it’s easier
(a 48% increase on 2012)
69% say they use the Internet for simple
transactions, while going to a branch or phoning for
complicated issues
77% of consumers say it is important to have a phone
number on each web or app page of financial services
providers (70% an e-mail, 44% a web-chat facility
and 27% video-chat)
However, 63% say they expect to have to wait to get
through on the phone
62% want one easy-to-remember phone number for
their bank
2 in 3 would like to use voice biometrics for ID&V
2012
4.3
The average number of channels
used by UK consumers to contact
financial service providers in
the past 12 months
The growth is partly driven by the rapid expansion in mobile
banking and apps, but the data shows an increase in consumers
using website FAQs, branch self-service machines, webchat, social media and other channels to communicate with
providers.
Going forward there are opportunities for financial services
providers to improve ease, when customers want to save time,
but also to elaborate when customers want to invest time to
ensure they make the right decision about their products and
services.
“Make it easy for simple queries and transactions
when I want to save time but elaborate and
provide more information to help me make the
right decision when I want to invest time…”
4
2 in 3 would like to use web-chat because they can
keep a record of the conversation and they can be
shown information, but only 41% feel confident
sharing their personal data in this way
Video-chat is of growing interest to consumers, with
the benefits identified as:
- 61% would not need to make an appointment
- 60% would be served straight away
- 50% would have better relationship with their
financial services providers
2 in 3 consumers describe the bank branch as being
‘cold and unwelcoming’ and would like improvements
such as:
- Free Wi-Fi (49%)
- More knowledgeable staff (40%)
- Bookable online appointments (35%)
1 in 10 follow their financial services provider on
social media platforms such as Facebook, Twitter,
Google Plus, etc. but 1 in 3 say the updates are
irrelevant
1 in 4 consumers would like to communicate with
their financial services providers using social media
platforms
Working together
A new era for banks and insurance providers
There has never been a better opportunity for banks and
insurance providers to connect with their customers. Fast
growth in the use of new channels is creating opportunities
not only for improved ease of service, but also for more
elaborate and richer interactions – ultimately leading to
better relationships.
Some banks and insurance providers have begun to take
advantage of these opportunities:
The average number of channels used by
consumers to contact their financial service
providers in the previous year has grown from
4.3 to 6.2 between 2012 and 2014
Online personal financial management tools are
now being used by 34% of consumers
The opportunity for financial services providers is no longer
about choosing between full service or self-service, this
channel or that channel. It is about meeting consumers’
needs at two fundamental interaction levels:
1. Ease – Making everyday interactions fast and simple
2. Elaboration – Creating content, insight and answers that
help customers make the right decisions
The benefit of doing so will be to drive Emotional
Connection, connecting with consumers at a human level,
to support their decision-making, and build personalised
relationships.
Communication should satisfy consumers’
need for ease and elaboration to deliver
emotional connection
Ease
Elaboration
Emotional Connection
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Powering a new financial services industry
There is an urgent opportunity to do more in the face of
changing customer behaviour, which threatens long-term
revenue growth. BT and Avaya have previously identified
the ‘autonomous customer’ – the consumer who is turning
away from brands to seek advice and information from other
sources. This behaviour is magnified in financial services:
Consumers trust in their financial services
provider is low in the UK (34%) and Spain (45%)
but much higher in France (78%)
52% say financial services providers would not
mind if they switched to another provider
61% of UK consumers would be interested in
banking services from alternative suppliers such
as Tesco, John Lewis, Amazon and Apple
Very few in the UK know the name of one person
at the bank where they have their current
account (France 58%, Spain 59% and UK 24%).
Most importantly, there has been a huge increase in the
number of consumers saying they turn to other sources of
advice than banks for financial advice (Spain 36% to 49%
and UK 43% to 54%).
The proportion of British consumers who say
they have a strong relationship with their bank
has fallen (UK 34% to 29%).
Financial services, consumers and relationships
To what extent do you agree with the
following statements?
2012 2014 2012 2014 2012 2014
6
My bank would not care if I switched
/
37
/
45
/
52
Difficult to get independent advice about money I can trust
/
51
/
64
/
49
My bank puts customers at the heart of their business
/
28
/
32
/
19
I trust financial service providers to treat me honestly and fairly
/
78
48
45
31
34
I am more likely to get advice about finance from other sources than my bank
/
35
36
43
49
54
I have a strong relationship with my bank
/
51
40
43
34
29
Banks have improved their services since the crash
/
24
/
23
/
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How do banks and insurance providers win the hearts of consumers?
There are many levers financial services providers can use to
retain and win customers, including better rates or prices,
superior products and better distribution.
Our research shows that consumers themselves rate
customer contact as a great route to stronger revenues and
relationships.
What should financial services providers do to improve
customer ease, to elaborate when consumers want it and
ultimately build the emotional connection needed to drive
customer behaviour? Our research points to some clear
actions.
Which would make you feel ‘warmer’ towards your bank?
51%
Call centre that are easier to get through to
48%
Having a named individual to email or phone
Clear communication
39%
Faster email response times
39%
36%
Call centres with more knowledgeable staff
32%
Friendlier staff
24%
Instant web-chat interactions
Email with info tailored to my needs
23%
Websites with better info
23%
Marketing aimed at me
More social media
8%
5%
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Youbiquity Finance: offer all the channels that consumers
want to use
44% increase in the number of channels
consumers are using to contact financial
service providers
2014
6.2
Leading financial services providers are changing their
strategies, to focus on where consumers are spending their
time – whether that’s Facebook, their smartphone, a new
shopping centre or their route home from work.
In two short years, the average number of channels used by
consumers to contact their financial service providers has
grown from 4.3 to 6.2, an astounding 44% increase.
This is partly driven by the rapid growth in mobile banking
and apps, but the data shows an increase in consumers using
website FAQs, branch self-service machines, web-chat, social
media and other channels to communicate with banks.
Which of the following channels have
you used to communicate with your
bank in the past 12 months?
FAQs website
Smartphone App
Call centre
Smartphone browser
Branch – self-service machine
Secure message
Internet banking
E-mail
Facebook
Text message
Twitter
Web-chat
Branch
increase
2012-2014
Up 27%
Up 24%
Up 20%
Up 20%
Up 14%
Up 13%
Up 11%
Up 10%
Up 9%
Up 9%
Up 8%
Up 6%
Up 5%
Across the three markets of France, Spain and the UK it is
the Spanish who are more likely to have used newer channels
such as Facebook, Twitter and smartphone apps. French and
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2012
4.3
The average number of channels
used by UK consumers to contact
financial service providers in
the past 12 months
2014
increase
2012-2014
2014
34%
34%
46%
28%
47%
20%
63%
47%
19%
18%
11%
10%
66%
Up 17%
Up 16%
Up 15%
Up 11%
Up 18%
Up 8%
Up 8%
Up 15%
Up 5%
Up 6%
Up 3%
Up 10%
Up 4%
34%
23%
57%
14%
55%
21%
68%
31%
8%
12%
4%
11%
81%
British consumers still rely on the phone and branch despite
the take up of online and mobile banking services.
Working together
Consumers across France, Spain and the UK are using multiples of channels to
communicate with their bank
Which of the following channels have you used to
communicate with your bank in the past 12 months?
ATM/cash machine
89
90
94
Face to face in branch
77
66
81
Internet site/internet banking
63
63
68
Use of a self service machine to deposit a cheque or cash
66
47
55
Phone call to a call centre
37
46
57
Phone call to your branch
66
56
35
Email
41
47
31
FAQs on internet site
22
34
34
Smartphone apps
22
34
23
Write a letter/send forms
35
19
21
Secure message via your provider’s website
31
20
21
Smartphone web browser
17
28
14
Phone call to a call centre in another country
8
9
22
Phone call to an automated or IVR phone service
15
8
17
Send text/SMS message
15
18
12
Facebook
10
19
8
Web-chat conversation online
8
10
11
Google plus or another social networking site
8
10
4
Twitter
5
11
4
Video conferencing
6
7
3
Online forum for customers of the financial services website
5
8
4
Online forum run by customers on the internet
6
6
4
Instagram
3
7
3
Pinterest
3
6
2
None of these
4
4
2
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Sales success in banking and insurance, person to person contact
Today’s consumers are using a wide range of channels to
purchase new financial products. For researching products
and services the Internet dominates, but face-to-face
meetings and phone calls continue to play an important role
in the final sale. In fact, the face-to-face channel is the most
popular for all purchases, except general insurance, across the
three markets.
Which of the following did you do whilst in the process of buying/switching to this product/service? Total – France, Spain and UK
Current
account
Had a face to face meeting
44%
Credit card
25%
21%
Phoned the financial
services provider
24%
18%
Used the financial services
provider’s website
23%
23%
Applied for a
product online
20%
29%
7%
Used a price
comparison website
7%
54%
34%
Filled out a paper
application form
Applied by post
Mortgage
5%
10%
Read a review by a
journalist or expert
3%
3%
Had a web-chat
conversation
3%
3%
Read an online review
by another customer
3%
3%
Contacted a third party
2%
2%
24%
39%
25%
14%
10%
51%
18%
General
insurance
21%
11%
20%
36%
27%
19%
Pension
Savings
product
44%
46%
26%
35%
37%
16%
41%
18%
5%
8%
7%
43%
14%
3%
5%
16%
6%
3%
4%
4%
2%
6%
4%
8%
11%
1%
18%
However, this does vary by country and in the UK the faceto-face channel is less prevelant than it is in France and Spain.
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Life
insurance
14%
9%
2%
7%
Health
insurance
58%
18%
18%
21%
24%
33%
26%
18%
28%
16%
4%
16%
13%
4%
0%
1%
0%
4%
5%
3%
26%
Opportunity for banks and insurance providers – Consumers
want a wide range of channels for ease. Offering new
channels and integrating them so that consumers can move
seamlessly from one to the other, is a priority.
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Use social media to build customer engagement in finance
1 in 10 follow their bank on social media
With 55% of consumers saying banks focus too much on
self-service it’s clear that financial services providers need
to be about more than just ease of use. Being efficient and
automated means providers run a risk of becoming forgotten
by customers. In short, the need for elaboration – to make
financial services more interesting, engaging and relevant – is
also important for consumers today.
Go where consumers are spending their
time
A growing range of mobile-friendly social media is
increasingly engaging the public consciousness. Since 2012
the giants of social media – YouTube, Facebook and Twitter –
have been joined by Google Plus, Pinterest, Snapchat, Tumblr
and others.
Consumers are using a range of digital channels and social
media more regularly than before, so building interesting and
elaborated content provides a great opportunity to create
emotional engagement. Already we have seen that 34% of
consumers use online personal financial management tools.
Social media consumption is every day
Which of the following do you use once a day?
Facebook
41
55
51
SMS
51
15
42
Accessing websites through smartphone
24
33
30
Accessing social media through smartphone
16
32
28
Online banking
23
20
18
YouTube on PC
16
26
14
Twitter
4
19
16
Google +
19
17
8
Apps on your smartphone which link to location based websites
7
20
12
YouTube on smartphone
8
17
9
Web-chat conversations
6
11
5
Smartphone banking
8
10
6
LinkedIn
2
6
3
Writing online reviews
5
6
2
Other social networking site
2
5
4
Snapchat
1
3
4
Pinterest
1
3
3
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Financial services providers turn to social
media
Making financial services more engaging
More than 1 in 10 consumers follow their bank and/or
insurance company on social media – 9% Facebook, 6%
Twitter and 4% other platforms. In Spain the figures are 17%
for Facebook and 10% for Twitter. Around 1 in 5 say they do
so because social media is where they’re spending much of
their time.
With 30% of users saying they find social media updates
from banks and insurance companies irrelevant, there is
clearly room for improvement. There are key elements that
drive interest.
Looking to the future, high numbers of consumers say they
would welcome interaction with providers using social media.
Personalised updates
Information which is relevant to consumers and
their money today
Special offers or invitations
1 in 4
Would like to communicate
with my bank in the future
Online forum for customers
of the financial provider
Online forum run by customers
Twitter
Google+ or other social network
Instagram
Pinterest
Facebook
Providing a forum for like-minded customers to
exchange thoughts
Proactively providing useful information
Sharing social media profiles with financial
services providers
40% of Spanish consumers say they would be happy to share
their Facebook profile with their bank if it meant they had
better information, compared to 1 in 5 British and French
consumers. While there will be concerns about privacy, this
may help address the complaint by 46% of consumers that
‘financial services providers make no effort to get to know
me’.
49% would like to share their location with their bank using
GPS to get special offers and discounts, taking advantage
of financial services providers’ wealth of data around
behaviours.
Some consumers would be interested in personalised videos,
which are e-mailed to customers with relevant information,
and offers designed to be watched on smartphones, tablets
or desktop.
Customers are open to a wide range of proactive and
personalised messaging which could be provided through
social media and other channels. Useful information to
improve ease of use, combined with detailed elaboration
on more complex financial matters could valuably increase
customer closeness.
12
Working together
Finding the best way to engage customers in dialogue
When would it be useful to recieve push or other
notifications from your bank?
2012
2014
2012
2014
When I go overdrawn on my account
51
69
52
63
When an amount is paid into my account
57
66
32
47
When an amount is paid out of my account
61
69
30
44
When the interest rate changes
32
45
26
44
When my tie in period is coming to an end
22
40
22
41
When a better deal is available
49
46
39
38
When there has been suspicious activity on my account
62
78
68
83
When my card is being cancelled for security reasons
55
79
58
83
Opportunity for banks and insurance providers – Building
content marketing strategies to engage consumers and drive
engagement is a strong opportunity for providers – as is
integrating social media communication with other channels.
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Working together
Drive ease with supported self-service
Over 4 in 5 want human help on every web
or app page
In terms of frequency of contact for many consumers online
and mobile banking apps are the top channels in banking.
7% use a mobile banking app once a day
(France 8%, Spain 10% and UK 6%)
20% use online banking once a day or more
(France 23%, Spain 20% and UK 18%)
Providing ‘supported self-service’ is vital to both providers
and consumers for three reasons:
- Firstly, to help consumers when they have a problem with
self-service or need further information
- Secondly, to convert a sale or assist consumers in making
choices about products
- Thirdly, to extend the capability of the self-service channels,
enabling customers to complete more tasks.
While many financial services providers see online channels
as closed entities, consumers potentially want help on every
page of the website or app, with the phone still the most
popular option (77%), followed by e-mail (70%), web-chat
(44%) and video-chat (27%).
The popularity of phone is reaffirmed with 2 in 3 people
agreeing that financial services providers should have one
easy to remember phone number.
Equally the branch still has strong appeal as a place to have
problems solved. New channels such as video conferencing
and video-chat are gaining traction too.
14
When you are on a financial services provider's
web site, if you need help how interested would
you be in being supported by…?
Branch
82%
Phone
81%
E-mail
81%
FAQs on
website
66%
Web-chat
53%
Co-browse
52%
Click to
call
One-way
video-chat
Video
conference
48%
41%
38%
Evolving mobile banking applications – more
capability
As with online banking applications, 55% say they would like
smartphone banking applications that make it easy to e-mail,
chat or call staff when desired. A further 59% would like
visual IVR/automated phone services that provide screenbased prompts when calling a financial services provider.
Working together
Web-chat is growing fast as an ‘instant channel’
Web-chat is well suited to this role – it can be offered
proactively or not on web-sites and apps, and is gaining in
popularity as the number of consumers using web-chat to
contact the following organisations show:
In the case where instant answers are required, using
web-chat but offering the option of video-chat will have
strong appeal to consumers. The benefits for consumers are
immediacy and personalised service.
- Telecoms, 13%
- Retailer, 12%
- Bank, 12%
- Insurance company, 6%.
Social media – less popular for direct contact
with financial services providers
In total 55% of consumers have used web-chat to interact
with organisations (France 53%, Spain 60% and UK 53%),
the challenge for financial services providers being that only
41% are confident sharing their personal data in this way
(France 34%, Spain 42% and UK 43%).
3 in 4 say they would not use social media to contact their
bank. Only 4% see it as a way to embarrass their bank into
action. Only 7% think they’d get better service this way.
And 10% think it gets complaints resolved. However, more
consumers than in 2012 are interested in using social media
to contact their financial services provider.
However, the benefits of web-chat to users are clear, with
consumers valuing the record of their conversation and
the ability to look, and jointly view, information on screen
(provided by the advisor).
From web-chat to video-chat
The progression from using web-chat to video-chat is
becoming more likely with the growth of video culture. More
and more consumers are using video in everyday life as a basic
means of communication:
Opportunity for banks and insurance providers – Rather
than self-service being seen as a closed channel, financial
services providers need to develop strategies for supported
self-service to maximise customer ease and provide
elaborated services where needed when consumers are using
websites apps.
Benefits of web-chat
Benefits of video
Benefits of using video
62%
61%
35%
- 49% watch video news more often than written news
(France 55%, Spain 57% and UK 42%)
61%
60%
33%
- 33% often send video/links to video to their friends (France
29%, Spain 49% and UK 29%)
59%
- 1 in 3 often record video on a smartphone (France 20%,
Spain 39% and UK 29%).
Liked web-chat as there is
a record of the conversation
Were satisfied with the outcome
of web-chat conversation
Found web-chat more valuable
than phone call as you can
look at things on the screen
Would not need to make an
appointment
Would be served straight
away
59%
Could have complex issues
explained more easily
Showing me how to do
something
Understanding how something
works
32%
Speaking to friends / relatives
59%
23%
49%
16%
Easier to see documentation
or info
Trust with financial services
provider improved
Shopping to select a product
For work purposes
The benefits of video include adding to understanding,
improving emotional connection and helping to make
choices according to consumers needs. These are important
to financial services providers who deal with complicated
products and need to build customer understanding and
trust. Consumers still like to see the see ‘the whites of the
eyes’ of salespeople before making a commitment to buy.
15
Working together
Re-shape the phone channel to deliver answers and
relationships
51% say contact centres, that are easier to get
through to would make them feel warmer to
providers
Large numbers of consumers continue to use the phone to
contact financial services providers. It remains the second
most widely used channel after the branch. The number of
people using the phone has grown as follows:
- An increase of nearly 20% in consumers calling the contact
centre (UK 57% and Spain 46%) at least once a year
- 37% French consumers called a contact centre and 66%
their local branch.
1 in 3 consumers know their bank’s phone number off by
heart, or have it stored in their mobile contacts (France 45%,
Spain 41% and UK 19%).
The role of the phone in building emotional engagement is
important, with 51% saying that contact centres that were
easier to get through to would make them feel warmer to
their provider.
Changes in bank policy and regulation in the UK means that
generating sales is now more reliant on building rapport and
emotional engagement, while providing regulated financial
advice or commissioned sales techniques is more challenging.
Perceptions of phone service need to be
addressed
Despite the popularity of the phone, perceptions of service
have not improved since 2012. British consumers still say
their top complaint about UK call centres is in having to deal
with overseas advisors who are difficult to communicate with
– 36% citing this complaint.
Some 41% say the music and messages whilst on hold do
not provide a good impression of the organisation. Further
there are strong impressions of phone service that need to be
overcome – including waiting to be served, having to argue
with staff and being cross-sold to indiscriminately.
16
Expectation of my next call to a financial services
provider
Will have to wait
to be served
63%
They will try to
sell me something
59%
They’ll make no effort to
get to know me
54%
Staff won’t be available
to do what I want
34%
Won’t be able to speak to
the person I want
33%
Will have to ask for
someone senior
33%
Will argue with
them
Will enjoy the
experience
25%
20%
Consumers have developed strategies for dealing with
contact centres, including:
1 in 4 visiting the branch to sort out the issue (France 28%,
Spain 35% and UK 19%)
1 in 5 calling back to speak to a different advisor (France
16%, Spain 20% and UK 15%)
1 in 20 writing to the CEO (France 5%, Spain 6% and UK 2%)
to make a complaint.
Working together
Consumers’ call for change
There is a range of improvements consumers would like, with
36% wanting call centres to have more knowledgeable staff.
48% want a named individual to contact by phone and 32%
ask for more friendly staff. Other improvements suggested
include:
“Have a more direct relationship between
branches and call centre, so customers would be
more likely to speak to people who knew about
their account/area/branch”
“Train all staff to work in one department to save
having to go from one person to the next. Have
an assigned person to deal with your issue from
start to finish, so if you call back they remember”
“Provide a personalised service for every
customer. everybody likes special treatment.”
“Have a Freephone number”
“Move the call centre to the UK, pay workers a
living wage/don’t treat them like cattle”
“Offer video conferencing facilities”
Opportunity for banks and insurance providers – The phone
remains a key channel, but financial services providers need
to invest more to retain the power to engage the customer.
17
Working together
Consider biometrics for speed and security
48% say they have to remember too many
passwords
Consumers understand the need for financial services
providers to protect their personal details and financial
affairs. However, the raft of passwords, authentications and
effort required to gain access to accounts can be a barrier
to engagement. Similarly customers complain that they are
often asked to repeat their personal details during the same
phone call, particularly in the UK.
1in2
48%
33%
48%
Put off by providers if there are too
many passwords or ID hurdles
I have so many passwords it’s difficult
to access services
My bank takes too long to identify me
when I phone a call centre
Have used voice recognition services when
phoning call centres (up 100% on 2012)
42%
Often asked to repeat my account details on the same
call which is irritating
62%
Want voice biometrics which recognise your voice &
identifies you when you call a bank. This means you
don't have to provide any personal information
ID&V impacts on other day-to-day interactions
Although ID&V is the core frustration for consumers, a
range of other interactions are affected by similarly timeconsuming and effort-increasing problems:
- 48% say the account opening process for new products is
too complex (a 22% increase on 2012)
Consolidated passwords for customers would have real
appeal, whatever the difficulty of implementation.
- Some 45% were interested in a system which tells staff a
customer is about to enter the bank so they can tailor services
to that person (France 43%, Spain 54% and UK 41%).
Voice biometrics is an answer for calls
Payments
Consumers are attracted by the idea of voice biometrics as a
solution to the frustrations of ID&V. There has been a 100%
leap in consumers using voice recognition to make calls,
but other forms of voice activation - Siri, car and Smart TV
commands – have become more common.
The range of ways to make payments is growing and 74% say
they would like fingerprint recognition to make a payment,
avoiding the need for a PIN (France 67%, Spain 80% and UK
70%).
Opportunity for banks and insurance providers – Improve
verification processes including making it easier for customers
by using biometric identification.
18
Working together
Build branch appeal to generate dialogue
Only 15% have had a cup of coffee or tea in a
bank branch
While the growth of digital finance for research and servicing
is evident, consumers are still very reliant on face-to-face
communication for the purchase of a range of financial
products. For the following products, face-to-face is the
most popular channel for making a purchase:
- Current account, credit card, mortgage, health insurance,
pension and savings products.
The debate about the future of the branch has continued for
many years and, whilst branch estates are declining in some
countries, many banks are investing in branch refurbishment
programmes. From a retailer’s perspective, bank executives
should be working hard to drive customers into the branch.
Although younger generations are less likely to use faceto-face channels, lack of relevant financial knowledge
means they still want branches, meetings in coffee shops,
home and offices to understand and buy products. This
makes understanding easier but also builds the emotional
connection required to support correct decision-making.
Branches have had real success in driving self-service on the
premises and there has been a 15% increase in consumers
using self-service machines.
Consumers are looking for a new branch
experience
The branch still has real power to generate relationships and
sales, particularly given the new regulatory environment in
the UK.
The argument against the bank branch is that consumers are
visiting them less frequently – though they are still inclined to
use them for the most important transactions. However, the
public do not rate the environment of the bank branch very
highly, saying they are:
- 82% dull/boring
- 74% uncomfortable/stressful
- 72% low-tech
- 69% cold/unwelcoming
- 59% old fashioned/dated.
While financial services are not as desirable as haute couture,
more can be done to improve the branch environment for
consumers.
Technology improvements in the branch
Many banks have updated their branches or have
programmes to do so, incorporating services such as free
Wi-Fi for customers. There is a range of improvements that
would improve ease of interaction (including open tills and
enabling staff and customers to view the same screen) as well
as more fundamental ease-of-use improvements, such as the
ability to issue new payment cards on the spot.
Consumers suggested a range of improvements:
“Make it look more welcoming – lots of space to
queue. Space available could be used for more
deposit machines etc.”
“Put in a comfortable waiting area and offer free
coffee and Wi Fi”
“More appealing surroundings… some
bookmakers have better looking environments
than banks”
“Teach the staff to ****** smile”
“More self serving stuff, more people there
to help and reduce queue size, train all staff
members so they can all help you in any aspect
you have”
58%
83%
39%
17%
20%
Prefer open tills at branches
where staff are not behind glass
Want branches which can issue new or
replacement cards immediately in person
I like it when I can see the same screen
at the desk of the branch staff
Aware of the risk of armed
robbery in branch
Want to use their smartphone in branch
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Working together
Banks across the world have invested in changing and
updating environments and consumers are expecting to
see more. Consumers would welcome some technological
improvements that address problems faced by consumers
today in bank branches:
- long queues in the branch
- the ability to speak to someone specific
- the ability to make an appointment with a specialist.
Between 2012 and 2014 the number of people interested in
enhancements to the branch has grown:
- Free access to Wi-Fi (up 10% Spain and 30% UK)
- More self-service (up 67% Spain and 2% UK)
- Improved design (up 25% Spain and 33% UK).
Overall, there is good interest in a range of improvements to
the bank branch.
In terms of location the top preferred locations for branches
are as follows:
- 65% shopping centre the customer
regularly visits
- 47% supermarket the customer visits
- 38% shared branches with other banks
- 30% post office
- 16% drive-thru facility.
Opportunity for banks and insurance providers – Investing
in person-to-person channels is important in driving up
revenues for financial providers. Maximising the effectiveness
of these interactions through fast appointments, backing
up information and data, recording interactions and fast
processes is important to consumers.
Which of the following do you think banks should offer
to make their branches more appealing to customers?"
20
Free access to Wi-Fi
46%
67%
49%
A friendly welcome as you walk in
42%
16%
40%
PC terminals for reasearch
36%
49%
31%
A more confortable environment
34%
36%
35%
More knowledgeable staff
31%
43%
40%
Improved design
27%
32%
24%
More self-service facilities
26%
38%
38%
Ability to book appointments online
26%
21%
41%
TV screens showing news, music, sport etc,
13%
18%
18%
Mood / brighter lighting
8%
23%
25%
Working together
The UK consumer – Acting independently of financial providers
Omni-channel behaviour
Opportunity to strengthen relationships
The research evidences the trend that consumers use a
range of channels to interact with organisations. Customers
since 2012 have been using more ways to interact and
contact their banks and insurance providers, the average
number of channels used by UK customers to contact them
has increased from 4.3 to 6.2, with 44% of customers
saying they change the way they contact a financial services
provider depending on their situation.
UK consumers do not feel they have a strong relationship
with their bank and only 21% think that financial service
providers have significantly improved their service since the
financial crash. 34% trust their bank to treat them honestly
and fairly (78% in France and 45% in Spain).
Supported self-service
68% have used the Internet to communicate with their
bank in the last 12 months. Some providers make effective
use of supported self-service to solve queries or problems
when customers’ transact online. 44% of consumers would
rather use web chat than a list of FAQs. Web-chat provides an
opportunity to engage with customers to further understand
their predicaments, choices and intentions and 11% of those
in the UK have used web-chat conversations to contact their
bank in the last 12 months.
With 57% believing UK bank’s customer service is faceless
and anonymous, the relationship between banks and
consumers is not as good as it could be, with only 29% saying
they have a strong relationship (compared to 43% in Spain).
52% of consumers believe their bank would not care if they
switched to another bank with only 24% of UK customers
knowing the name of at least one person at their local
high-street bank branch (58% in France, 59% in Spain). The
Autonomous Customer is clearly identified in this research,
with 54% of them using other sources than their bank to get
advice about financial services.
Social media is increasingly being used to make formal
complaints. 6% have used social media to contact their
financial services provider with half of them thinking it was a
convenient way to make contact.
The phone and branch continue to be preferred ways of
contacting financial service providers but they continue to
frustrate customers with 34% of consumers agreeing it takes
too long for banks to identify them when they phone their
bank’s call centre. 52% agree they are asked too often to
repeat their account details. 72% say the queue to the bank
branch at lunchtime is too long. Face-to-face communication
remains popular – 81% have visited a bank branch and in
the last 2 years there has been a 4% increase in number of
consumers overall visits.
21
Working together
The French consumer – Strong financial
relationships
The Spanish Consumer – New channels used
for finance
High trust in French financial services providers
Difficulty in getting financial advice
78% of consumers in France trust their financial services
providers to treat them honestly and fairly (in the UK it is
only 34%). 51% describe their relationship with their bank
as strong, in contrast to just 29% in the UK. French banks
are usually better at customer service with the highest score
for consumers enjoying the experience of visiting a bank
branch (34%). French consumers were also the least likely to
regard banks’ customer service as faceless and anonymous. In
addition they are less likely to turn to sources other than their
bank for financial services.
As many as 64% of Spanish consumers say it is very difficult
to get independent advice that they can trust about money
and finance nowadays. Only 45% expect their bank to treat
them honestly and fairly – 11% more than in the UK but
33% less than in France. 67% of Spanish consumers would
buy more from providers that make it easier for them to do
business.
Effective two-way communication is vital in developing
good customer relationships, and 39% of consumers often
change the way they contact their financial services provider
depending on their situation.
Half of the respondents from Spain say that they closely
monitor their finances using a personal financial management
tool provided by their bank (17% in the UK) with 57% of
consumers opting to deal directly with their general insurance
provider. Car and household insurance claims appear to be
processed much faster than in the UK, as is arranging to
switch insurance providers.
Channel behaviours
Social media and finance popular
The potential for organisations to use social media
interactions is evident, with 52% of French people using
Facebook two times a week or more. Only 8%, however
actually follow their bank on Facebook. 75% of consumers
tend to use the Internet for simple transactions leaving
the more complex issues for the phone or when visiting a
bank branch. 23% in France use online banking once a day
compared to 18% in the UK.
The consumer trend of using a range of channels including
social media to interact with financial services is clearly
evident in Spain with 19% following their bank on Facebook.
More consumers use Facebook, Twitter and YouTube than
other countries with 44% having fibre optic and superfast
broadband at home compared to 21% in France.
When online, consumers in France are more sophisticated in
their use of supported self-service than the UK and Spain,
whilst 40% would rather use web-chat than FAQs, but to
date, 13% of French consumers have used web-chat with
their bank.
26% of consumers from Spain, compared to 16% in the UK,
tend to use mobile banking apps more often than Internet
self-service for banking. 20% use apps on their mobile
phones, which link to location based services. France has
only 7% consumer uptake of similar apps. Also, in Spain
24% would like to use their smartphone’s banking app when
in their bank branch. The Spanish, being more connected,
are more open to proactive notifications, such as when an
account is overdrawn, when a sum is paid into their account,
when an amount is paid out of an account and reminders to
renew insurance.
66% have contacted their bank branch in the last 12 months
by phone. Similarly in the branch 46% thought the queue
to the teller at lunchtime is too long with 74% saying that
when they walk into a bank they would like to immediately be
offered assistance.
Smartphones used extensively
61% say that banks have focused too much on self-service
rather than ‘getting to know me and my needs’, compared to
48% in France. In bank branches 70% of Spanish consumers
anticipate they will have to queue. 79% do not enjoy their
visits to a bank branch, while 4 in 5 of them feel it is cold and
unwelcoming and wish the staff were friendlier.
22
Working together
Conclusion
The central challenge of Youbiquity Finance is to make
finance services available everywhere, and integrate them
in a way that provides seamless service to customers. The
different preferences of French, Spanish and UK consumers
show that this task can have a global direction but must be
executed differently at national level.
The contact centre, whether local or central, will become
the core of these new and traditional channels. Its role as
the ‘eyes and ears’ of the organisation will remain crucial in
understanding customers’ experiences and using proactive
contact to drive good service.
Ease:
Make it easy for
simple queries and
transactions when
customers want to
save time…
Indound calls
The 2014 research has shown that financial services
providers need to do more than just provide fast and loweffort service and sales to customers. There is also the need
to elaborate and provide more information, communication
and direction to consumers when they want to invest time
to make the right decision about their money. This will drive
customers’ emotional engagement.
The future contact centre
Automated
calls / ID&V
Social media
Video –
direct & branch
Traditional
call centre
Complex calls
Contact
Centre core
-Youbiquity
Finance
Mobile
banking
Outbound calls
Elaboration:
Elaborate and provide
more information to
help make the right
decision when
customers want to
invest time
Web self-service
support
‘Branch’ calls
E-mails
Web-chats
Smart
outbound
23
Working together
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