NEW YORK—Another study shows that consumers place great trust in their financial institution—more than any other industry—to securely manage their personal data.
The report also shows that consumers in growing numbers see their FI relationship more as transactional than advice-driven, suggesting that banks and credit unions risk being viewed as a “utility.”
Accenture’s report, Banking Shaped by the Customer, is based on a survey of more than 4,000 retail banking customers in the United States and Canada between Jan. 19-26, 2015. When asked what type of company they trust most with securely managing their data, the vast majority of respondents – 86% – chose financial institutions.
The report emphasized that more than 10 times the number of respondents chose FIs, opposed to payment companies (7%), mobile phone providers (2%) or consumer technology companies (2%). Only 1% of consumers said they trust social media providers the most to manage their data.
“Despite the many threats that banks face, they still possess competitive advantages that are critical in today’s digital world,” said Dave Edmondson, senior managing director of Accenture’s North America banking practice. “At the same time, our report highlights several trends that are causing significant challenges for banks and should serve as a call to action for them to focus more on improving customer perceptions and gaps in their digital offerings.”
For instance, the survey found that most consumers (79%) define their banking relationship as transactional or commoditized, rather than advice-driven and offering high-margin products and services. “These consumers said that their relationship with their financial institution is defined by simple transactions, like paying bills and receiving checking-account statements,” the survey explained.
The study also found that consumers shop around and choose sources other than their primary bank for high-margin products. For example, the majority of consumers said they went to other sources to purchase auto loans (70%), brokerage accounts (61%), registered retirement accounts (53%), financial advice (52%) and home mortgage loans (52%).
“Consumers’ perception of their banking relationship as transactional and not advice-driven is growing at a rapid pace,” Edmondson said. “Banks run the risk that consumers increasingly view them as a utility — a service for basic financial transactions — and not as the first choice for seeking financial advice. Banks need to become more relevant to customers’ everyday lives, including recommending suitable products and services, whether these options come from the bank or third parties.”
Consumers said they would be interested in several value-added services provided by FIs, including: discounts for purchases (54%); proactive bill-pay services (53%); product recommendations (52%); end-to-end assistance with car buying, such as help with negotiating a loan and providing vehicle recommendations (49%); and buying a home (46%).