A recent survey by global banking and payment technology provider FIS showed that Indian banking consumers have wholeheartedly embraced digital banking by adopting mobile wallets and virtual cards as favorable payment methods. Since digital access is at a mature level in India, banks have been expanding their digital capabilities in the past year.
FIS’ fourth annual Performance Against Customer Expectations (PACE) study, which surveyed more than 1,000 banking consumers in India, found that 86 percent of Indian banking consumers use financial mobile apps mainly to check their bank account and make financial transactions which is more than they did a year ago. The rise in adoption of digital banking clearly demonstrates the need for banks to understand customers’ needs to strategically prioritize the areas where digital makes most sense.
The FIS PACE report also highlights that banks in India are successfully meeting the expectations of their customers by offering various digital channels and convenient branch locations. 82 percent of Indian consumers are satisfied with their primary bank with customers from private sector banks being more satisfied than public sector banks. The report additionally suggests that banks could further boost satisfaction level by introducing reward programs.
Key Findings about Indian Consumers:
· 18% of respondents experienced fraud in the previous year
· Nearly, two-thirds of the respondents have a financial advisor and the remaining prefer to rely on friends and families for financial advice
· 94% of the respondents used alternative financial services than the services provided by their primary banks.
What Millennials and GenMxers (Age Group 18-36) in India said:
· Mobile app is the primary method for person-to-person payments and banks should continue innovating digital offerings
· They are more likely to be planning for events central to their life stage including retirement and hence will turn to their primary financial institutions for financial advising
“This year’s PACE study clearly shows that digital access and mobile financial applications matter most to Indian consumers”, said Mr. Ramaswamy Venkatachalam, Managing Director – India, FIS. “Since the Indian economy is poised to transition into a less cash economy, banks are providing their customers with digital capabilities that facilitate an extensive range of financial activities. With digitalization evolving, banks need to strategically prioritize individual customer needs and willingness in order to boost customer satisfaction. The PACE study depicts a clear picture of where India’s banks need to focus and how we can further provide services/products to meet the demands of banking customers,” he added.