October 21, 2016: A new research report released found that while millennials depend on their digital devices, they are still uneasy sharing personal information to open bank accounts. The report, UK Millennial Study: Privacy vs. Customer Experience in Financial Services, focused on UK millennials’ tolerance of friction when opening new bank accounts or credit cards, and their level of comfort when sharing personal information online and on mobile. The report was published by LexisNexis  Risk Solutions.

The report states that despite millennials being digitally connected via smartphones and laptops, nearly two-thirds (64%) worry about the risk of online privacy, and over half (52%) are concerned about having their identity stolen through online, or mobile/app-based activities. Nearly half (48%) surveyed expressed their concerns about entering and viewing banking information a mobile device. The methodology of this study comprised a survey of 400 millennials, deployed during April-May 2016. Respondents represented both younger (18-24 years old) and older (25-34 years old) millennials in the UK.

The research also found that (61%) of Millennials in the UK prefer to open a new bank account in-person, and just under half (47%) would rather open a credit card account in-branch.  When asked to provide a reasoning for this, over half (53%) stated that they found it intrusive to provide the level of financial information required to open a new account online, and 49% confirmed that they found it easier to open a new account in-person, which further suggests that the online process is not as efficient as banks’ Millennial customers would prefer.

Further highlighting the importance that Millennials’ place on opening a new account in-person, respondents overwhelmingly stated that they would be willing to wait more than 30 minutes to open a new account in branch (63%), and less than half (48%) said that they would wait for the same length of time to open an account online.

Many banks risk losing new customers if the level of information requested is considered intrusive. Worryingly, the majority of respondents (38%) stated that they would terminate a new account opening session if they felt uncomfortable with the information being asked, and 21% would do so if they felt that they were being asked for too much information.

Steve Arnison, Director, LexisNexis® Risk Solutions said: “These findings highlight the unease that many Millennials feel about information sharing, particularly when it comes to online and mobile transactions.  Financial Services organisations today face the challenge of balancing the level of friction that customers will tolerate with the need to safeguard against fraud, and whilst continuously innovating to meet the demands of an increasingly digitally-savvy customer base.”

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October 21, 2016: A report released by marketing technology company, Wiraya highlights that businesses need to overhaul the way they communicate with customers or risk losing them to rivals. An overwhelming 86% of customers who left their bank, energy, mobile or insurance provider in the last six months said they would have been more content if they were contacted in a different way.

When questioned about their reasons for leaving, relevancy and timeliness had the biggest impact on loyalty. Nearly 1 in 5 (17%) complained that they never received relevant information. Another fifth (20%) said they received relevant information but not when they wanted it.

More than half (51%) said they would be happy to receive information about loyalty programmes. Most said they wanted to know important facts about their account such as if their card or payment has been declined (45%), or if there’s been a notification of a renewal date end (38%).

The majority (62%) said that they didn’t feel valued by the provider throughout the course of their contract. One of the main gripes consumers have is the preferential treatment given to new customers. Nearly half (42%) said they received worse benefits as existing customers compared to new customers.

Being told ‘your call is important to us’ while waiting in a queue is the most frustrating thing to hear, according to 52% of respondents. Receiving irrelevant information (44%) and being asked for the same information twice (41%) also topped the list of annoyances.

The research for Wiraya was carried out by Opinion Matters between: 23rd – 28th September 2016. Around 500 adults in the UK who have left their bank, energy provider, mobile provider or insurance provider in the past six  months were interviewed

Overall, banks and mobile providers performed slightly better than insurance and energy when it came down to customer value. The findings clearly indicate that customers want brands to communicate but in a more appropriate and personalised way tailored to individual customer needs.

Sam Madden, UK director at Wiraya said, “Many businesses still struggle to communicate with their customers in a relevant and timely way. In the age of the bombarded consumer, where individuals receive hundreds of marketing messages a day, it’s no surprise consumers are left unsatisfied and prone to churning. Using the vast amounts of data many brands now hold and overlaying this with technology such as Artificial Intelligences (AI) can help create more engaging messages delivered in a manner chosen by the customer. Having a more service oriented approach that focuses on building loyalty not only reduces churn, but makes better business sense from a cost and reputation perspective.”

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