World Retail Banking Report 2016 – CapGemini / Efma

Great analysis on the current state of retail banking worldwide and the challenge being posed by Fintechs, summary below. Interesting to see that improvements in customer experience aren’t driving  additional cross selling / uptake and that Fintechs are gaining trust and making real inroads into banks market share. Some banks are focussing on core Transformations to modernise their technology ecosystem and some are partnering with startups to leverage capability which is a smart move.

World Retail Banking Report_2016_Final_Web

The comprehensive survey data in this report, gathered from polls of 16,000 customers in 32 countries, as well as over 140 industry executives around the world, is designed to assist banks in understanding the current competitive landscape and mapping out their strategic responses. The information in this report will help banks to:

© GapGemini / Efma

Assess current levels of customer experience

Our annual rankings of global customer experience allows executives to track bank performance by individual country over time. Major shifts in the rankings occurred this year, with Japan recording the highest increase in the Customer Experience Index and Spain having the steepest fall, prompting big changes at the top and bottom of the overall ranking.

the impact of improved customer experience

Globally, banking industry witnessed an increase in the CEI by 2.9 points, with improvements occurring in 85% of the countries surveyed. This overall improvement, however, translated into only marginal gains in profitable customer behaviors, such as retention, referrals, and cross-sales.

Gauge the true influence of fintech competitors

The rise of fintech firms is undeniable, but just how widespread is its reach? We found nearly two-thirds of customers are using fintech products or services. Further, the level of customer trust in fintech firms is very high across all regions, and customers are more likely to refer their fintech provider over their bank.

Take stock of their ability to manage the fintech threat

Banks overwhelmingly agree that their core systems are not able to support the coming evolution of banking into an inter-connected digital financial services ecosystem. In response, they are exploring new approaches to innovation involving various levels of partnership with fintech firms.

Get up to speed on the most effective responses to fintech’s advance

Several banks are embracing the open architecture of APIs to ensure ongoing dialogue with leading-edge fintech product developers. They are also exploring pathways to transforming their core systems, which will be fundamental to preparing for the digital banking ecosystem of the future.