EPAM Continuum Releases 2020 Consumer Banking Report Offering Insights Into Evolving Customer Behaviors, Expectations & Motivations
Press Release: September 17, 2020
"Whether you're a FinTech challenger or an established global bank, or a Neobank, the landscape for finance has undeniably transformed, and with it, so have customer expectations," says
In the report, EPAM paints a rich and detailed picture of today's banking customers and highlights key emerging themes, including:
- Building and Maintaining Trust Is Everything.
Key findings show that an overwhelming majority, 82%, are satisfied with their traditional banks. Only 4% of respondents are "slightly unhappy," with just 1% "extremely unhappy." While COVID-19 has had a strong impact on customer attitudes, with 50% of customers reassessing their banking needs in response to the pandemic, it has not influenced behaviors with customers behaving cautiously during this period of uncertainty and risk. While this is a strong indicator of the significant challenges ahead for neobanks, opportunities abound.
- For Potential Switchers, Customer Experience Is Key – Not King.
Despite paving the way for so much innovation, neobanks have yet to penetrate the market in a meaningful way and, as a result, face significant challenges in sustaining growth. According to EPAM's survey, only 3% of all respondents use a neobank as their sole account—not in combination with other banks—whereas 14% use it in combination with one or more banks, with 5% of those using their neobank as the primary account.
"EPAM's findings present clear implications for neobanks, which are often focused on customer experience to differentiate and attract new customers," says panelistStessa Cohen , a former Gartner analyst, and current independent analyst, and member of the Analyst Syndicate, advising banking software businesses and Fintechs on strategy and positioning. "While customer experience is important, it is not enough. Neobanks must target those 'hidden tribes' of customers who are not only open to switching banks, but also are more likely to be swayed by financial benefits or a hassle-free switching experience."
- Banks Should Focus on Offering Value-Added Services to Support Everyday Needs.
For those who would consider switching banks, more than half of respondents would be tempted by value-add benefits, such as good interest rates, a sign-up bonus, cashback, or insurance. Developing a resonant brand and creating a strong customer experience are important elements of a competitive banking proposition, but they alone won't be enough to convert customers at scale. Banks that find a way to support and facilitate people's lives in meaningful and purposefully differentiated ways will be well-placed to outperform the competition and drive sustained growth.
- Banking Services need to be integrated with Customers' Go-To-Channels
Our survey shows that there is an openness to innovation, especially across certain age groups, with 40% of 18- 44-year-olds open to banking through social platforms and intelligent assistants. It is not such a big leap for banks to consider meeting people where they spend most of their time—on social media. In addition to creating the right products and services, they need to be offered and consumed with minimal friction. This means having a strong and visible presence in the channels where banks' target customer segments are already active. The future is ubiquitous banking: bringing banking to the customer – not the other way around.
EPAM's research uncovered five audience segments based on key behavior patterns and summarizes the motivations, attitudes, needs and expectations for each segment. These research insights will help the banking industry better understand the evolving needs of their customers and how to better serve them.
To access the full report, visit: www.epam.com/2020-banking-report
EPAM Breakfast Briefing Webinar - Consumer Banking Landscape 2020: Only Radical Disruption Will Bring Radical Change
Join EPAM and a panel of banking industry experts on
Hosted by
About
Since 1993,
EPAM Continuum is EPAM's service brand for integrated business, experience and technology consulting focused on accelerating breakthrough ideas into meaningful impact. Learn more at www.epam.com/epam-continuum and follow us on LinkedIn.
Forward-Looking Statements
This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions and the factors discussed in our most recent Annual Report on Form 10-K and other filings with the
View original content to download multimedia:http://www.prnewswire.com/news-releases/epam-continuum-releases-2020-consumer-banking-report-offering-insights-into-evolving-customer-behaviors-expectations--motivations-301132742.html
SOURCE
Amber Rasmussen, O: +1-971-337-9648, Amber_Rasmussen@epam.com