4 in 5 banks prioritises people over products

81% of banks seek to differentiate their customer experience.

Four in five banks are putting more emphasis on customer experience rather than products, a report by the Economist Intelligence Unit published by Temenos showed.

The report surveyed 305 senior banking executives who believe that financial institutions will seek to differentiate themselves on customer experience rather than on their products and services in the next four years.

The report also highlighted how financial institutions have been forced to adapt to the sudden movement of customers managing their finances online, which has proved beneficial to digital-only banks. 

Almost three in four (71%) global respondents expect cash to represent less than 5% of all retail transactions globally by 2025. 

The report further revealed that consumers, particularly Millennials and Gen Z, are increasingly demanding that companies follow responsible business practices. This is leading to business engagement with issues that are important to consumers, such as combating climate change and promoting diversity and financial inclusion.

Additionally, banking executives are prioritizing the financial empowerment of their customers. Findings showed that around 34% of financial institutions are considering growing microfinance for entrepreneurs, 33% deposits for unbanked populations, and 32% responsible lending to under-banked populations in the next one to three years.

“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,” Joaquin de Valenzuela Muley, senior vice president and business line director of Temenos Infinity said.