Pune: A recent survey conducted by financial services technology leader FISTM has revealed that the younger generation in the country is far less satisfied with their current banking providers than the older generations.
The study states that the younger consumers want to better connect with their banks at their convenience, at any time and from anywhere.
According to the FIS’s third annual Performance Against Customer Expectations (PACE) report, the biggest pain point for younger consumers, aged between 18 years and 36 years, is getting time to physically visit a branch and thus want better connect with banks at their convenience.
The report stated that while the younger generation is driving the move towards digital transactions, they are not satisfied with their banking providers and there is an increasing demand for a new level of digital service.
Commenting on the survey findings, Managing Director, India and South Asia, FIS, Ramaswamy Venkatachalam said, “More than ever, Indian consumers want to connect with their banks at their own convenience, at any time and from anywhere. As the economy shifts from cash and plastic to cashless, mobile and digital, banks need to establish a stronger multiple service relationship with their customers. The PACE findings present a clear picture of where India’s banks need to focus to remain first in the minds of their customers.”
FIS surveyed 1,000 banking consumers in India and more than 8,000 banked consumers in eight countries, including India, Australia, Brazil, Canada, Germany, Thailand, the United Kingdom and the United States.
“Compared to consumers in other regions surveyed by FIS, Indian respondents place more importance on anywhere/anytime access to their accounts and digital payment options provided by their banks and, conversely, lower importance on in-person service and the ability of their banks to anticipate their financial needs,” the survey report stated.
The FIS PACE report also revealed that banks in India continue to underperform as compared to their peers in other countries in terms of meeting their customers’ expectations.
Indian financial institutions scored 75 points in the 2017 PACE study, one point higher than in 2016 but seven points below the global average PACE score.
The survey also revealed that the use of mobile banking and digital payments has increased dramatically in the country post demonetisation. The survey found that 60 per cent of the respondents said that they have used mobile devices this year to check their account balances, view recent transactions, pay bills, transfer funds or other banking needs. This was up from 39 per cent of survey respondents in 2016 and 34 per cent in 2015.
The survey found that only 18 per cent of the respondents stated that they use their primary bank’s credit cards exclusively while a large chunk of 42 per cent revealed that they do not use a credit card.
The importance of the primary bank providing digital payment options has risen year on year across all age segments.
The respondents indicated that more than 30 per cent of their payments are done with mobile apps compared to cash, cheques or credit/debit cards in the recent past.