The Indian Banking Customer Experience

Accenture has released an interesting quantitative research paper – ‘The Indian Banking Customer Experience’.

You can download the entire report as PDF (1.37 MB) here (registration required).

The research is focused primarily on banking services distribution touch points. The four key findings are:

1. Traditional channels continue to drive usage

 Customers’ prefer dealing with traditional banking channels i.e. Branch and ATM. These two channels continue to dominate customer preference. Over 78% respondents mentioned the Branch and ATM as the preferred channel for priorities such as accessibility, quality of service and speed of problem resolution.

2. Alternate channels are yet to gain customer acceptance

 Alternate channels usage though consistently on the rise, is still struggling with customer acceptance. Low awareness levels are driving the ‘lack of need’ and hence poor usage. The greatest barrier for respondents in using multiple channels is that they do not feel the need to use a different channel as well as the low awareness for internet, phone and mobile banking.

 3. Customer satisfaction is a function of expectation

 Customers not only prefer to use traditional banking channels but they are also more satisfied with traditional channels they use. Preference for traditional channels is driven by customer perceptions of accessibility and quality of service. ATM as a channel has the highest satisfaction among the user base, even higher than the Branch. Almost 50% of the respondents prefer transacting business with the ATM. This finding however should be interpreted in light of the type of activity for which the channel is used, as well as the customers’ expectations from their primary bank.

 4. Customer experience is driving the ‘Bank of Choice’

 Customer service delivered via multiple channels is driving the ‘Bank of Choice’. Indians are most likely to consider good customer service as the main factor for choosing a bank, cited by over 66% percent of the respondents. While customers have a variety of expectations for good service, they care most about how well informed and personable their customer service representative is, how fast and efficiently they receive service and how long it takes for their issues to be resolved.

Implications

 To drive the channel usage and enhance customer experience, the research suggests that banks must focus on:

  • Right channel and customer mix
  • Well defined customer message
  • Structured feedback gathering and subsequent improvement driving process
  • Consistent experience across channels – segment, information, service level agreements
  • Digitization and innovation to enable banks to retain and acquire customers

What do you think?

This article was first published by Anand on Indiabanks

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