Over a third of European consumers unable to access financial services during lockdown – research

7 iulie 2020

Two-thirds of consumers expected 100% digital onboarding of customers to be available and see COVID as a catalyst for digitalization; Only 1 in 5 consumers are understanding when banks can’t offer digital onboarding; 70% of consumers have an account with a digital first/challenger bank.

New research from Signicat has revealed that 41% of consumers across Europe have been unable to access new financial services thanks to a combination of pandemic lockdown restrictions and lack of access to digital options. The research of over 4000 consumers also discovered that two-thirds expect improvements following these poor experiences. One of these improvements should be 100% digital onboarding of customers.

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With many bank branches closed in recent months, and movement limited for most people to short essential trips, access to financial services in person has been limited like never before. Many consumers have turned to online and mobile channels, but a large number have found this impossible.

COVID-19 as a catalyst for 100% digital onboarding

When asked what they thought of financial service providers that didn’t allow remote digital onboarding without the need to visit a branch, only 20% were understanding of this limitation, while a third couldn’t see why fully digital onboarding wasn’t possible in 2020. Two thirds of respondents saw COVID-19 as a catalyst for 100% digital onboarding with only 14% disagreeing, saying that they did not expect financial service providers to be more digital due to COVID-19.

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The findings, due to be released in the upcoming report The Battle to Onboard 2020: The impact of COVID-19 and beyond” come at a crucial inflection point for financial service providers. 70% of those surveyed had an account with a digital-first financial service provider such as a challenger bank, and 69% of those considered it to be better than more traditional services. Those dissatisfied with their experience under lockdown are more likely than ever to move to a mobile-first account. With most consumers using a mobile service and enjoying the experience, traditional providers are more at risk than ever from consumers moving their day-to-day finances to challengers.

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Our regular research into consumer attitudes around digital onboarding has found that financial services have struggled to keep up with consumer demands in the later years,” said Asger Hattel, CEO, Signicat. “One of the effects of the pandemic has been to bring this into sharp focus, turning a desire for digital services into a desperate need. Consumers expect to be digital customers which are, according to big banks, 2-3 times more profitable and more loyal than branch-only customers.”

The majority of consumers want the option of banking 100% digitally, including the initial application and onboarding. Digital onboarding is in fact crucial, as consumers will see it as a preview of the service—a poor user experience will lead to many abandoned applications. Digital channels can no longer be regarded as points of service, they are points of sale too.” – Hattel added.

The survey reflects the findings of the 11:FS Insight Report on COVID-19, which saw the short term impact as a sharp increase in digital banking coupled with cash, ATM, and branch use plummeting.

Survey Methodology

Commissioned by Signicat, the survey was conducted by Sapio Research in May 2020 2019 and consisted of an online questionnaire completed by 4043 individuals who have applied for a financial product in the last 12 months. The survey respondents were split across the UK, Germany, the Netherlands, Belgium, Sweden, Finland, and Norway.

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Gabriela Nistor – director general adjunct BT

Tendinţele pe care le-am remarcat înainte de începerea pandemiei s-au accelerat pe perioada stării de urgenţă. Am văzut acest lucru ca o oportunitate, un tipping point pentru bancă. Post-pandemie nu avem cum sa ne întoarcem la comportamentul financiar pe care îl aveam până în februarie a.c. Relaţia românilor cu online-ul s-a schimbat. In plus, cardul fizic se va dematerializa. Vom asista la o scădere a cererii pentru cardurile fizice, respectiv la o creştere a preferinţei pentru componenta digitală a acestora.”

Sondaj

In 23 septembrie 2019, BNR a anuntat infiintarea unui Fintech Innovation Hub pentru a sustine inovatia in domeniul serviciilor financiare si de plata. In acest sens, care credeti ca ar trebui sa fie urmatorul pas al bancii centrale in 2020?