Even while financial institutions try to keep up with the latest banking innovations, more than a third of banked consumers actually believe that technology advances too quickly for them, a survey by First Data found. However, institutions can make the transition easier with some personal attention, the company said. Its study found that four out of ten consumers would prefer to learn about new financial services technology by talking with someone at their bank or credit union, rather than learning it on their own.

The purpose of the study is to help financial institutions better understand which investments in technology will drive increased loyalty and transaction frequency among a wide variety of customers, as well as to identify trends about retail banking customers’ perceptions and relationships with their financial institutions.

The study provides insights into the relationships between consumers’ interest in and usage of technology and innovation, their attitudes toward their financial institutions, the banking products they use, and the impact of the economy on their behavior. Some notable findings include:

•    Only 15% percent of consumers are currently using mobile banking, and 3% indicated they intend to start using mobile banking in the next 12 months.

•    Nearly half of consumers (47%) are familiar with the service but are not using it, indicating that consumer education is still needed regarding the benefits of mobile banking.

•    While two-thirds of consumers are familiar with account alerts, only 37% of banked consumers currently use them, indicating a possible need for financial institutions to shift some of their focus from awareness to activation.

•    Six in 10 consumers surveyed still receive paper statements, representing a tremendous opportunity for cost savings for financial institutions.

 

 

One way for financial institutions to determine appropriate investment strategies in technology is to better understand technology from banking consumers’ perspective. The research identified six distinct categories, or segments, of banking consumers based on key demographic, behavioral, and attitudinal differences, including their inclination to use banking technology products and services. Simplified, those six segments are:

•    Fast trackers—young family types who rely on smart phones and banking apps.

•    Young aspirationals—singles with varied interests and little banking loyalty
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•    Simplifiers—middle-aged lower-income wage earners loyal to their local banks.

•    Middle of the roaders—middle-aged wage earners who wait until technology is proven.

•    Value seekers—older, well educated and financially comfortable who aren’t interested in a lot of technology.

•    Conventional stalwarts—fixed-income retirees who prefer paper statements and live tellers.

“Having a better understanding of consumers’ acceptance of technology, and the level of technology they’re comfortable with, will help financial institutions reverse the troubling trend brought on by recent economic challenges,” said Mark Willard, senior vice-president and head of the Financial Services division, Market Strategies International.

 

For more information:

http://www.firstdata.com/en_us/about-first-data/media/press-releases/05_05_11