Faster service and lower costs among benefits
consumers expect from robo-advice
Nearly one-half (46 percent) of bank customers are open to use
robo-advice for banking services – computer-generated advice and
services, independent of a human advisor – according to a new
report on the banking industry by Accenture (NYSE:ACN). Consumers
in the U.S. are more open to robo-advice (46 percent) than Canadian
consumers (43 percent).
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Consumers welcome robo-advice from banks to determine how to
allocate investments (79 percent), the type of bank account to open
(74 percent) and for retirement planning (69 percent).
The report, titled “Banking on Value: Rewards, Robo-Advice and
Relevance,” is based on a survey of more than 4,000 retail bank
customers in the United States and Canada, and is the most recent
report in Accenture’s multi-year research on consumer banking
attitudes and behaviors.
“It’s well-known that robo-advice is gaining significant
traction in the wealth management industry; however, our research
shows this trend is also picking up in retail banking,” said David
Edmondson, senior managing director of Accenture’s North America
Banking practice. “Consumers will continue to dictate how, when and
where they want to interact, and banks have an opportunity to use
intelligent automation and robotics to simplify and improve the
customer experience. Successful banks will strike the right balance
between human and machine interaction to elevate their role in
customers’ lives beyond simple transactions and become a go-to
resource.”
This year’s survey found that speed and convenience (50 percent)
and lower costs (29 percent) were cited by respondents as the
primary benefits of robo-advice, with millennials and mass-affluent
consumers expressing the most interest in the service.
Non-traditional banks continue to gain momentum
The survey found that consumers are increasingly willing to bank
with non-traditional players, closing the gap with those switching
to large regional or national banks. Eleven percent of North
American consumers (11 percent in U.S. vs. nine percent in Canada)
switched banks in the past year. Among those respondents who have
switched, 33 percent joined a non-traditional provider (online-only
bank, payments providers, retailer or insurer), versus 23 percent
who switched to a large regional or national bank. Of those who
switched, 15 percent of consumers ages 55+ joined an online-only
bank, up from only five percent who did the same last year.
Millennial switchers increased the move to online-only or payments
providers from 24 percent in 2015 to 27 percent this year.
Consumers ages 35-54 had a reverse trend; 30 percent moved to
online-only or payments providers in 2015, down to 24 percent in
2016.
“Consumers no longer view switching banks as a hassle, which
puts pressure on firms to not only attract new customers, but find
ways to keep existing customers loyal,” continued Edmondson.
“According to our research, 79 percent of consumers consider their
relationship with their bank to be purely transactional – this is a
missed opportunity for banks that now have access to technology
that can help them provide more tailored offerings, particularly as
more consumers are open to receiving value-added services from
their bank. In fact, 45 percent of consumers said the top reason
they would stay loyal to their bank is if it offered discounts on
purchases of interest.”
One-fourth of consumers in the U.S. said they would consider
switching to a bank with no branch locations, up three percentage
points from last year. Among Canadians, 23 percent would consider
switching to a branchless bank, which is up eight percentage points
from last year. Across North America, 26 percent of Millennials
would consider switching to a branchless bank (up three percentage
points from last year), and 34 percent of mass affluent consumers
would do so, up ten percentage points from 2015.
Online channel dominant, but branches still relevant
While nearly one-quarter of North American consumers would
consider switching to a branchless bank, the survey found that the
branch remains popular. Today, one-fourth of survey respondents use
the branch at least weekly, and it remains the second most
preferred channel, after online.
By a wide margin, those who use the branch prefer “full service
branches,” which include extended office hours and full sales
support, over all other formats (61 percent). However, 19 percent
of Millennials prefer “light branches” – highly automated with
videoconferencing access to remote specialists.
According to the survey, the vast majority (87 percent) of
consumers say that they will use the branch in the future.
Respondents said they anticipate using the branch two years from
now because “I trust my bank more when speaking to someone in
person” (49 percent), and “I receive more value from my bank when
speaking to someone in person” (47 percent).
“Today’s consumers expect their service providers to understand
and anticipate their needs and offer a seamless experience across
digital and physical channels – and they expect this as much from
their bank as they do from retail stores and Internet giants,”
Edmondson concluded. “Even as consumers indicate interest in
robo-advice and online banking, they continue to demand human
interaction at the branch to handle more complex banking needs.
Banks need to find ways to blend the digital and branch experiences
to provide more value-added services to their clients, and move
past their role as a transactional service provider.”
Despite security breaches, customers willing to share
data
Nearly one-fourth (23 percent) of respondents have experienced
at least one incident of their financial data being hacked online
over the past two years, including 25 percent in the U.S. and only
16 percent in Canada. Yet, despite this, consumers are willing to
share their data in order to receive better service from their
bank. Nearly two-thirds (63 percent) of respondents are willing to
give their banks direct access to personal information, such as
mortgage, credit card and student loan data, so their bank can use
it to present them with suitable products and services. Respondents
want banks to use their data to provide access to lower prices,
faster service (such as rapid loan approval), more relevant advice,
and personalized offers based on location.
The full report can be downloaded at
www.accenture.com/consumerbankingsurvey.
Methodology
The report is based on an online survey of 4,013 bank customers
in North America by Accenture in March 2016. Approximately 70
percent of the respondents (2,803) were based in the United States
and 30 percent (1,210) were based in Canada. The survey has a
statistical margin of error of 1.55 percent.
About Accenture
Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy,
consulting, digital, technology and operations. Combining unmatched
experience and specialized skills across more than 40 industries
and all business functions – underpinned by the world’s largest
delivery network – Accenture works at the intersection of business
and technology to help clients improve their performance and create
sustainable value for their stakeholders. With more than 373,000
people serving clients in more than 120 countries, Accenture drives
innovation to improve the way the world works and lives. Visit us
at www.accenture.com.
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AccentureMelissa Volin, + 1
267-216-1815melissa.volin@accenture.com
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