Confidence in banks' ability to protect customer data and ensure client engagement is dwindling
The shift from in-person interactions to online and mobile transactions during the coronavirus outbreak has impelled an “ongoing erosion” of Canadians’ trust in financial institutions, according to a new analysis by Accenture.
The 2020 edition of Accenture’s Global Banking Consumer Study, which polled more than 47,000 people worldwide including approximately 2,000 Canadians, found that without the strong personal links that face-to-face transactions can build over time, “customers are more likely to view banking services as a commodity, with price being the ultimate competitive differentiator.”
Less than half (44%) of the surveyed Canadians said that they have “a lot” of trust in their banks when it comes to protecting their data. This share was 13% lower compared to the reading just two years ago.
Robert Vokes, managing director and financial services lead at Accenture Canada, said that the recent paradigm shift to digital financial transactions has made it even harder for banks to cultivate valuable relationships with clients.
“The COVID-19 pandemic has led to a huge increase in digital engagement, which is positive but has some drawbacks,” Vokes said.” On one side, digital acceptance has allowed banks to meet customers’ needs in an efficient way despite the challenges of the pandemic, and it has also accelerated banks’ digital strategies. On the other side, it has forced banks, in some cases, to launch solutions that do the trick functionally but are lacking in the human touch.”
Vokes stressed that the onus rests upon banks to make the digital experience “more personal and relevant,” especially in a time when pandemic-driven financial pressures continue to weigh upon consumers.
Vokes added that maintaining this trust is important as 69% of polled Canadians believe that their banks have their best interests in mind “always” or “most of the time” when providing advice. Another 71% believe that this advice is “smart, personalized, and well-informed.”
“When creating digital tools, banks need to consider how consumer behaviour is changing and ensure that interactions are still relevant and personalized, with the option to connect with a human advisor when it makes sense,” Vokes said. “Balancing human and machine interactions is crucial so that banking customers feel fully taken care of, as well as to enable bank employees to offer the right advice and services.”
