Digital-first banks leading the way for customer service, research shows
Research from FIS has shown that digital-first banks are outperforming the world’s top 50 banks when it comes to customer services such as security and privacy.
The Performance Against Customer Expectations (PACE) study surveyed thousands of banking consumers from the UK, the US, Germany and India to identify the most important performance indicators in banking and to rank the performance of service providers against consumer expectations.
The report showed that the services offered by digital-first banks are rising in importance in the UK, with consumers wanting a banking experience that is customised and convenient. More than 65% of UK respondents were found to be using alternative financial services, with these services being the most popular with millennials.
The study also explored other banking trends and found that while UK consumers feel generally happy with the security and privacy services offered by their banks, they would be more likely to switch banks if any issues occurred.
More than 60% of consumers aged 18 to 32 have used a non-bank P2P payment service, compared to 60% of consumers in the 38 to 52 age group and 53% of 53 to 71-year-olds.
The study also looked at how much knowledge consumers have when it comes to personal finance and investing and found that young millennials aged 18 to 26 are the most passionate about these at 4.3%, compared to 4.01% of senior millennials (27 to 37), 3.9% of Gen MX respondents (27 to 52), 3.79% of Gen Xers (38 to 52) and 3.73% of boomers (53 to 71).
Young millennials are the most knowledgeable about personal finance and investing and have the most experience of these at 4%. This compares to 3.83% of senior millennials, 3.78% of Gen MXers, 3.73% of Gen Xers and 3.53% of boomers.