25 March 2017
Visit EBAday.com

In digital age, customers still want human touch

26 October 2016  |  10458 views  |  2 Lloyds branch

As established banks rush to close branches in favour of digital channels and a host of new mobile-only challengers enter the field, new research suggests that customers still want the human touch.

In the UK in particular, the move to digital has been accelerating, with Lloyds, RBS and Barclays all retreating from the high street as customers migrate online. Meanwhile, a rash of startups, such as Atom and Monzo, are building digital-only rivals.

Yet a global survey from Nielsen shows that Brits are among the world's least likely to try mobile-only banking, with nearly two thirds saying they would steer clear of a provider with no physical locations.

The main reason Brits won’t try mobile-only banking is due to security concerns, cited by 58%. One in five who won’t try it say it’s because they prefer to visit a branch, making Britons 50% more likely than the global average to prefer going into a branch.

Security and privacy were also key factors in another recent global survey, from LexisNexis Risk Solutions, which found that millennials are extremely wary of sharing their private data with banks and fintech startups.

Meanwhile, a further survey of 24,000 people in 12 countries, carried out for vendor Verint, found more bad news for digital firms, showing that more than three quarters prefer the human touch to remain a part of customer service when engaging with brands and service providers.

Businesses are responding to the increasing digital world by offering their customers new ways of engaging with them. However, most choose using the phone (24%) or going in-store (23%). In terms of preferred digital customer service channels, 22% want access to an online account, 14% want the ability to communicate with a customer service agent via email, and nine per cent prefer mobile apps.

Comments: (2)

Brett King
Brett King - Moven - New York | 26 October, 2016, 22:30

Here's the problem. Surveys say people want the human connection in the branch, but branch traffic shows exactly the opposite. The truth is somewhere in between. People THINK they need a human connection, but their behavior shows that they just don't anymore. The economics of the branch don't work with "desire" they only work with actual traffic and actual visits that produce revenue

3 thumb ups! 3 thumb ups! (Log in to thumb up)
Xavier Marcillac
Xavier Marcillac - STRANDS - Singapore | 27 October, 2016, 02:38

@Brett, I agree this type of surveys can be misleading... I believe "people think they need a human connection", just in case of trouble or a major financial event (mortgage...). People do not want to go to the Branch anymore, but what they do want is a safety net because Money is very serious. I believe in the fully digital banking model, with 1, 2 or 3 nicely designed stores (evolved branches) that are part of the overall experience. A go-to place in case of a major question. Like ING Direct successfully did to accelerate customer acquisition in several markets. 

1 thumb up! 1 thumb up! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Robo-advisors not ready to replace humans - Credit Suisse exec

Robo-advisors not ready to replace humans - Credit Suisse exec

26 October 2016  |  11840 views  |  6 comments | 19 tweets | 20 linkedin
SocGen opens tech hub for digital drive

SocGen opens tech hub for digital drive

20 October 2016  |  5811 views  |  0 comments | 12 tweets | 14 linkedin
Standard Chartered hails its 'Uber Moment'

Standard Chartered hails its 'Uber Moment'

04 October 2016  |  6166 views  |  0 comments | 1 tweets | 5 linkedin
ING to spend EUR800 million on digital integration; shed 7000 jobs

ING to spend EUR800 million on digital integration; shed 7000 jobs

03 October 2016  |  11459 views  |  0 comments | 28 tweets | 27 linkedin
Nationwide says technology is great, but sometimes face-to-face is better

Nationwide says technology is great, but sometimes face-to-face is better

22 September 2016  |  6245 views  |  0 comments | 10 tweets | 22 linkedin
Lloyds seeks head of fintech discovery

Lloyds seeks head of fintech discovery

20 September 2016  |  6950 views  |  0 comments | 15 tweets | 2 linkedin
Lloyds to cut further 3000 jobs and close 200 branches in wake of Brexit vote

Lloyds to cut further 3000 jobs and close 200 branches in wake of Brexit vote

28 July 2016  |  9565 views  |  10 comments | 9 tweets | 5 linkedin
Royal Bank of Scotland drops the axe on more branches/staff

Royal Bank of Scotland drops the axe on more branches/staff

12 May 2016  |  5302 views  |  0 comments | 4 tweets | 2 linkedin

Related blogs

Create a blog about this story (membership required)
Visit capgemini.comvisit abe-eba.eu

Top topics

Most viewed Most shared
French retailer Carrefour launches online bank accountFrench retailer Carrefour launches online...
57146 views comments | 15 tweets | 35 linkedin
European Commission opens public consultation on fintechEuropean Commission opens public consultat...
8676 views comments | 42 tweets | 25 linkedin
Can banks really win in the payments business of the future? – new Finextra reportCan banks really win in the payments busin...
8552 views comments | 23 tweets | 37 linkedin
Westpac wants to take over your messaging keyboardWestpac wants to take over your messaging...
7094 views comments | 4 tweets | 10 linkedin
SecureKey taps IBM to put identity on the blockchainSecureKey taps IBM to put identity on the...
6996 views comments | 22 tweets | 15 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job