A recent survey, conducted by business consulting firm CGI, has found that consumers in Canada and seven other countries place a high value on access to a wide range of digital financial services from their financial institutions.
The 2016 survey, called FinTech Disruption in Financial Services, examined the value consumers place on digital banking services and whether financial service providers are meeting consumer needs. CGI surveyed 1,670 consumers in Canada, United States, United Kingdom, France, Germany, Sweden, Singapore, and Australia. It also examined 12 FinTech verticals, some of which included digital identity and fraud protection, mobile payments, and personal financial management.
“Work is needed to reduce the complexity of these digital services and aid purchase.” – Kevin Poe, VP and global lead for retail banking at CGI
The survey revealed that 75 percent of consumers prefer to acquire digital services from their current financial institution or other traditional providers. It also indicated that the most valued FinTech vertical is digital protection, with 78 percent of consumers placing a high value on digital protection services. In Canada, 82 percent of consumers said they value digital protection the most, suggesting that consumers often fear cyber attacks and potential fraud.
Kevin Poe, the vice president and global lead for retail banking at CGI, says with consumers demanding digital services from their traditional banks and financial institutions, incumbent banks have the opportunity to improve what they offer.
“Incumbent banks are well-positioned to offer new digital financial services based on their trusted customer relationships with high levels of uptake,” said Poe. “Partnerships with FinTech firms can allow banks to move more quickly—one of the approaches banks are taking to meet rising customer expectations for fast, personalized digital services.”
CGI’s survey further found that consumers highly value personal financial management services as well, as they seek the convenience in their banking experiences. Sixty-one percent of consumers identified personal financial management as a highly valued service; 63 percent of consumers are aware of this service and 37 percent said they intend on using it.
In addition to personal financial management and digital protection, the survey found that 51 percent of consumers said the ability to make mobile payments is a valuable service; 94 percent are aware of it and 53 percent intend on using it. Aside from these concepts, the survey looked at obstacles that FinTech companies face, revealing that consumers’ lack of trust is the biggest obstacle, followed by complexity and risk aversion.
“Work is needed to reduce the complexity of these digital services and aid purchase,” said Poe. On the other hand, new market entrants must find ways to overcome the hurdles of customer access and trust, and partnerships with banks provide a potential solution to these challenges.”
Overall, the survey indicated that consumers place a high value on digital financial services and demonstrate eagerness to use these services. In response, FinTech firms are increasingly pushing themselves into the financial services space to meet the needs of different consumers.
The full survey’s findings can be found here.