Majority of bankers see customer experience, not products as future of banking

A report published by Temenos has found four in five bankers believe financial institutions will look to discern themselves on customer experience rather than products or services.

The report – titled Demanding More – was conducted by the Economist Intelligence Unit and was based on a global survey of 305 senior banking executives.

As of January 2021, 14 million British citizens had a digital-only bank account, which represented a 16% growth from January last year and a 3x increase on the same time the year before. Almost three in four – 71% – of global respondents in the survey said they expect cash to represent less than 5% of all retail transactions globally by 2025.

The survey found that global banking executives’ top strategic priorities were all customer-focused – with improving customer experience and engagement, including personalisation and intimacy, seen as the most important strategic priority by 30%.

Furthermore, the report found that particularly Millennials and Gen Z were increasingly demanding businesses follow responsible business practices – including seeking to combat climate change and promoting diversity and financial inclusion.

 The survey also discovered that banking executives are prioritising the financial empowerment of their customers – with findings showing that 34% of financial institutions were considering growing microfinance for entrepreneurs, 33% were looking to grow deposits for unbaked populations and 32% were looking to grow responsible lending to under-banked populations in the next one-to-three years.

Temenos Infinity SVP and business line director Joaquin de Valenzuela Muley said, “Banking is a very human experience, and yet for so many, banking doesn’t happen the way we live our lives. In today’s world, the relationship financial institutions have with members or customers is more critical than ever.

“Banks are moving their customers from physical into digital channels and the winners will be those who can inject intimacy into those channels. Banks will need to provide a digitally-driven customer experience in assisted channels and online – offering advice, value-added services, and ‘always on’ banking, helping individuals, families, and businesses to meet their dreams and aspirations. This report showcases what should have already been obvious: banking is about the people, and the products need to reflect that.”

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