Despite a Proliferation of Channels and Growing Adoption of Micropayment Apps, Trust and Security Remain Pivotal Customer Experience Components
MELVILLE, N.Y., June 2, 2021 — Consumers are banking through more channels than ever before, according to new research released today by Verint® (NASDAQ: VRNT), The Customer Engagement Company™. Consumers surveyed in March 2021 used an average of 4.1 channels, while Generation X (Gen Xers) banked using an average of 5.3 channels.
The study also shows growing adoption and usage of micropayment apps. Use of micropayment apps has increased since 2020, with twice as many customers using Venmo and Zelle and nearly three-quarters of all respondents using PayPal – but consumer concerns about trust related to use of these services remains a barrier.
Trust increases significantly when these apps are operated through the customer’s bank, but trust is still an issue particularly for older generations. While 39% of Millennials and Gen Xers use these apps more now than in 2020, Baby Boomers remain wary and are less likely to trust the bank’s app, and 46% of Baby Boomers don’t use these apps at all.
A significant percentage of banking customers tried a digital-first, self-service approach to engaging with their bank during the pandemic – 75% to resolve an issue, 73% to open an account or apply for a new product or service, 73% to gain information on a new product or service, and 60% to conduct a transaction. However, the high rate of digital self-service failure is forcing consumers to escalate to the contact center, chat, email, drive-thru or branch locations.
Ease of digital banking and availability of security measures are among the top consumer priorities. Nearly two-thirds (63%) of consumers leverage fraud alerts. Of those not using this feature, 40% didn’t know they were available, while 21% said they didn’t know how to sign up.
American Express, U.S. Bank, Citizens Bank, and Wells Fargo showed the largest year-over-year gains in customer satisfaction (CSAT), but all top 15 banks included in the evaluation showed improvement in this key metric, highlighting the industry’s proficiency in navigating a tumultuous year while continuing to deliver excellent experiences. When measured using a predictive methodology, higher CSAT drives loyalty, trust, and recommendations. American Express, TD Bank, and U.S. Bank also showed statistically significant increases in Net Promoter Scores® (NPS).
“Banks have just been through one of the most challenging years in recent history, and this arduous landscape is unlikely to change anytime soon,” says Verint’s Kevin Daly, global vice president and GM, experience management. “Our research shows that as customer experience grows more important every year, the realm of customer engagement and customer experience is getting harder to navigate. Customer journeys are more complex and expectations are higher than ever. The largest banks in the U.S. have found a way to stay on top over the past year but will need to stay vigilant. Meanwhile smaller banks will have to work twice as hard to compete.”
The research is based on the Verint Experience Index™: Banking benchmark survey of consumer satisfaction with 15 leading banks and includes CSAT and NPS rankings. Consumers were surveyed in March 2021, allowing for comparisons to customer experience in 2020, both just before and just after the pandemic started. For more than a decade, the Verint Experience Index (VXI) has chronicled digital and omnichannel experiences across key industries including banking.
Banks were evaluated on their proficiency across five key drivers that impact customer satisfaction using Verint’s predictive model: branches (convenience, location variety, service level); confidence (transaction accuracy, security, protecting PII); products (meet financial requirements, flexibility, clarity of terms); representatives (understanding, responsiveness, resolution); and services (account management, access, simplicity).
Click the link to download the Verint Experience Index: Banking report. In this month’s webinar series, Banking Customer Experience Data, explore how financial service companies can center on the customer for success in 2021.
The Verint Experience Index is a panel survey report chronicling customer experiences across key industries. This edition ranks the omnichannel customer experiences of the top 15 commercial banks in the U.S. as ranked by the Federal Reserve according to total number of assets. The study used a web panel with survey respondents that were representative of the U.S. general population, with at least 230 responses collected for each bank. To qualify for the survey, respondents had a personal checking or savings account with at least one of the 15 banks. Rankings in the Index are based on CSAT, using a scale of 0 to 100. NPS is also shown, on a scale of -100 to 100. When two or more scores are identical at one decimal place, the next decimal place is used to break ties and determine ranking. All wave respondents were independently sampled. Wave 3, the focus of this report, was fielded from March 2-29, 2021 with a total of 3,783 respondents. CSAT margin of error is ±1.79 and NPS margin of error is ±7.41. All significance testing was completed at a 90% confidence level.
Verint® (Nasdaq: VRNT) helps the world’s most iconic brands – including over 85 of the Fortune 100 companies – build enduring customer relationships by connecting work, data and experiences across the enterprise. The Verint Customer Engagement portfolio draws on the latest advancements in AI and analytics, an open cloud architecture, and The Science of Customer Engagement™ to help customers close the engagement capacity gap.
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