Saving isn’t sexy, and more to the point, it doesn&8217;t earn #banks as much #money as spending does–at least in today&8217;s near-zero interest rate environment. The recent Wells Fargo scandal over unauthorized account openings and the fees that followed them shines a spotlight on a longstanding problem for retail banking: banksRead More
Bank Innovation
A large majority of #customers want #innovation #from their banking suppliers, according to a survey produced by #technology firm Sopra Banking Software. The report was compiled using data from a survey of 5000 customers in six European Countries (France, UK, Germany, Spain, Belgium and the Netherlands).
While 69% say it is important to have an innovative bank only 12% of consumers surveyed fully agreed that their bank is innovative. Additionally, out of the respondents Interested in new technology 33% of customers are ready to switch #banks for the latest technologies.
Consumers are willing to share more data such as their personal information in exchange for clearly identified benefits. Interestingly, the results showed the generation gap might not be as large as we would expect. Remarkably, the openness to sharing more data holds across generations, i.e. in the whole 18-75 age range. According to Forrester, the typical company only tags 3% of their data and only analyses 0.5%. Most companies are throwing away 99.5% of their leverage with the customer.
“This highlights a lack of engagement on the customer side as well as a lack of added value on the bank’s side,” said Dr David Andrieux from Sopra Banking. “From the findings, customers are happy to switch if they find better offerings demonstrating that playing it safe is the riskiest strategy of all.”
Despite the 2008 financial crisis, trust and customer satisfaction levels are remarkably high at 82% and 85% respectively and 90% of consumers have no immediate intention to move banks.
However, they are also open to change, willing to share more data and interested in new technology. Only 12% of customers agree that their bank is different from other banks while 33% ‘somewhat agree’.
This figure varies between countries and although Spanish banks are amongst the most innovative banks in Europe, Spanish customers are more demanding and less satisfied with their banks.
78% of respondents consider it to be important to have an innovative bank and 58% are ready to switch to a bank providing the latest technologies. “Perhaps, once people get a taste of the possibilities enabled by modern thinking and technologies, they can’t get enough,” explained Dr David Andrieux from Sopra Banking. Interestingly, it was evident from the findings that technology and innovation is important not just for the younger generation (18-24), but also for the whole 18-44 age range.
Traditional banks are losing their appeal. Customers are looking for something more or something different with 54% of banking customers open to choosing a ‘non-traditional’ bank such as Pure Online Banks, Ethical Banks, Community Banks and a New Twist on the traditional bank.
The interest of customers in peer-to-peer (P2P) lending and crowdfunding is significant, with 21% and 27% respectively proving of interest.
Alternative finance now constitutes a sizeable market, especially in the UK, but increasingly so in other EU countries. Despite remaining questions regarding its profitability, the European alternative finance market as a whole grew by 144% – from €1,211m in 2013 to €2,957m in 2014.
To Summarise
– ‘Traditiona banks are losing their appeal’
&8211; ‘There is a lack of engagement on the customer side as well as a lack of added value on the bank’s side’
&8211; ‘Consumers across countries and age ranges are open to personal data sharing’
&8211; ‘The Spanish and young customers have higher expectations regarding banking technologies’
Banks must innovate and create value for their customers through exciting nonconventional products and initiatives that use a platform designed for the digital age. For example, offering a digital wallet management platform, in which banks can integrate services from third-parties.
The whitepaper can be downloaded here
The post 69% of Customers Demand Innovation From Banks appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
#MasterCard announced that it will #bring its #Swiss #customers and cardholders #Apple Pay, which is transforming mobile payments with an easy, secure and private way to pay that’s fast and convenient.
Apple Pay allows MasterCard cardholders to use their cards where and how they want with a seamless payment experience. For consumers and merchants alike, that means that every purchase made with Apple Pay will offer the security, benefits and guarantees of any MasterCard transaction. MasterCard is working with several #banks and card issuers to enable cardholders to use their MasterCard credit or prepaid cards with Apple Pay.
Security and privacy is at the core of Apple Pay. When you use a credit or prepaid card with Apple Pay, the actual card numbers are neither transferred to Apple, nor stored on the device or on Apple servers. Instead, a unique Device Account Number is assigned, encrypted and securely stored in the Secure Element on your device. Each transaction is authorized with a one-time unique dynamic security code.
Image source: Apple.com
‘Apple Pay allows consumer to pay easily and securely, wherever contactless MasterCard cards are accepted at POS or Apple Pay is accepted for in app payments, be it in Switzerland or across the globe,&8217; said Guido Mueller, Country Manager Switzerland. &8216;MasterCard was the first in the world to offer contactless and mobile payment solutions, and the Swiss are rapidly adopting #this well-established global standard for convenient, secure payment with a tap. In Switzerland, at more than 100,000 locations including Migros, Coop or Kiosks, more than 3 million contactless purchases are made every month, up 100% compared to the previous year[1] .
With this clear shift in payment preferences, we are excited that MasterCard cardholders will soon be able to make payments in store or in app with Apple Pay, knowing that every purchase brings the unrivaled ease and security of NFC payments to mobile payments, together with all the same guarantees and benefits they&8217;ve come to expect from using their MasterCard.&8217;
Apple Pay is easy to set up and users will continue to receive all of the rewards and benefits offered by their card of choice. In participating stores, Apple Pay works with iPhone 6s, iPhone 6s Plus, iPhone 6, iPhone 6 Plus, iPhone SE and Apple Watch. Online shopping in apps accepting Apple Pay is simple, without needing to repeatedly fill out lengthy account forms or type in shipping and billing information. When paying for goods and services within apps, Apple Pay is compatible with iPhone 6s, iPhone 6s Plus, iPhone 6, iPhone 6 Plus, iPhone SE, iPad Air 2, iPad mini 3, iPad mini 4 and iPad Pro.
For more information on Apple Pay, visit here
The post MasterCard Will Bring Apple Pay To Swiss Customers This Summer appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
Reply