The major Swiss banks have integrated digital media in their practice: an increasing number of mobile payment systems, personal financial planning and mobile banking Apps can be found on almost every platform. However, the private banking sector is not there yet. Some have taken the first steps towards digital change, and most of them need external support in order to kick-off their transformation.

To be successful, the banking establishments consistently have to adapt to the evolving needs and requests of customers. The expectations are even higher among the digital natives – the web-and-mobile-born generation – progressively entering their target group.

OpenWT hint: every day, people spend only 2% of their time spent on smartphone using financial Applications.

Situation

In the course of a Master Thesis, a consultant at Open Web Technology, in collaboration with the Swiss Federal Institute of Technology (EPFL), carried out a survey with a focus on the mobile banking landscape in Switzerland. Over one hundred bank customers have been asked about their preferences and behavior regarding their usage of mobile applications in the banking sector. In addition, discussions with exponents of numerous Swiss banks have been conducted on this topic.

Analyzing the results of the survey, Open Web Technology started to develop a strategic roadmap to help banks  successfully define and implement their digital transformation.

Approach

The focus was put on understanding the customers’ expectations towards the expansion of mobile banking and the increasing number of functionalities offered by digitally advanced banks.Over one hundred bank customers have been asked about their preferences and behavior regarding their usage of mobile applications in the banking industry. In addition, discussions with exponents of numerous Swiss banks have been conducted on this topic.

Analyzing the results of the survey, Open Web Technology started to develop a strategic roadmap to help banks to successfully define and implement their digital transformation.

Results

Analyzing the data collected through the survey, 6 key findings could be delivered:

  1. Banking Apps usage: 90% of the survey participants using financial-Apps use their affiliated bank application. However third-party applications (e.g. finance portals, funds provider...) are used even more often amongst digital natives.
  2. General communication with the bank: over 40% of the interviewed customers communicate through digital channels, thus making them the most important communication channels before face-to-face contact, phone or mail.
  3. Channel distribution: 80% to 90% of the clients interact with the banks through their website. 44% of the digital natives also use their bank Mobile App and 16% use also the mobile-website.
  4. Presentation of the mobile banking services: Transfer and payment functions are the most requested features by the whole customer population. Specifically, digital natives have a high expectation over the personal assessment and finance management functions. 
  5. Reservation: The main reasons for non-use of Mobile banking Apps amongst the digital native population are the concerns regarding private life information (for 53% of them) and the Data security (37%). Unfriendly user interfaces come in the third place, mentioned by 26% of the interviewees.
  6. Fidelity: 20% of the digital natives are ready to change to another bank for better digital services. 12% of the rest of the survey participant would also do it under these conditions. 

Digital natives are becoming the new customers of the banking and finance industry with confidence and purpose. They show how the sector needs to adapt to their expectations in a faster and more responsive fashion than ever before. Based on our findings we provided key recommendations to help banks engage further with their customers via digital channels.

Curious to learn more? Request the full study and our recommendations simply by sending us an email with subject “Survey Details” at info@openwt.com.