Do you remember rushing to the bank on Friday to make sure you had enough money for the weekend? When was the last time you filled out a deposit slip or waited weeks to replace a lost credit card or shopped at a store that doesn’t accept credit cards?
Your wallet today is probably full of contactless credit and debit cards. You can even pay with your mobile phone or have a card that allows you to pay in cryptocurrency.
We’re in the midst of the great payments disruption, and payment and money management options are more varied than ever. And customers and financial institutions are struggling to keep up.
So to better understand where the end users areEntrust surveyed 1,350 consumers from nine countries. The survey asked consumers who have made or received digital payments in the past 12 months to uncover their preferences and habits during this disruption in the payments landscape.
The results show that consumers want the flexibility and security of the new digital world to extend to their banking as well. This means that financial institutions must rise to the challenge with their digital offerings to maintain a competitive edge.
3 key payment themes from our data
Consumers have identified their expectations and concerns from their banks, revealing considerations financial institutions need to keep in mind as they adapt to the Great Payments Disruption. Here are three key findings from The Great Payments Disruption report:
1. Digital banking offers are not a pleasure, they are a necessity.
It is undeniable that digital offers attract consumers. In fact, 88% of respondents said they prefer to do their banking online. Let’s break down what “online” means. When it comes to online banking options, mobile apps reign supreme: 59% of respondents prefer to use their bank’s mobile or tablet app. In contrast, 29% prefer to do their online banking on their desktop web browser.
But while consumers prefer the convenience of online banking options, they still interact physically with their banks – 70% said they had used an automated teller machine (ITM) in the past year. Seamless omnichannel touchpoints remain essential to the customer experience. And if a bank doesn’t offer a digital-first experience, it risks falling behind.
2. Digital transformation unlocks flexibility and customers are looking for secure and flexible options.
When choosing a bank or considering switching banks, respondents’ top priorities can be summarized as: more flexible payment options, better access to digital solutions and increased security. But as banking and credit become more digital, 90% of respondents said they were concerned about the potential for bank or credit fraud. Two-thirds of respondents who were notified of a fraud (67%) said they changed banks or credit unions as a result. Clearly, consumers want secure, high-quality digital banking – and they’re willing to switch banks for it.
These results highlight significant opportunities for challenger banks. In fact, 72% of respondents globally said they would consider using a branchless online banking service/challenge bank for their banking. To maintain their competitive advantage, banks and credit unions need to invest in digital and security solutions to prevent competitors and challenger banks from capturing market share.
3. Contactless payment methods continue to grow in popularity.
Compared to countries like the UK whose cardholders adopted contactless cards more than ten years agocontactless cards in the United States only recently appeared on a large scale. Although newer to the United States, contactless cards are rapidly gaining momentum and responding to consumer demand for more flexible and secure options. In fact, 48% of respondents listed contactless credit or debit cards as their preferred method of payment, just behind the 50% of consumers who said they preferred chip-based credit or debit cards. Peer-to-peer payment apps (e.g. PayPal or Venmo) and contactless mobile payment — while continuing to grow in popularity – lagging behind with only 30% of respondents citing them as their preferred payment methods.
However, this lack of mobile contactless payment adoption could be due to the fact that only 53% of respondents say they have received a digitally issued debit or credit card from their bank or credit union. Although this is a slight majority, there is room for growth – and for banks, there is a big opportunity here. Given that respondents said they want more flexible options, a digital card solution could be the answer banks need to attract a wider customer base and retain existing customers to stay relevant.
Download The Great Payments Disruption report for more information
To download The Great Payments Disruption report for a better understanding of the current digital disruption in the payments industry and the resulting impacts for consumers. In the report, you’ll learn what consumers expect from their banks and how you can deliver a secure and digital omnichannel customer experience.
If you want to learn more about how we can help you embrace the future of banking, get in touch with our team today.
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*** This is a syndicated blog from the Security Bloggers Network of entrust the blog written by Jenn Markey. Read the original post at: https://www.entrust.com/blog/2022/03/new-data-from-entrust-highlights-consumers-desire-for-a-digital-first-banking-experience/