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Survey shows 89 % of GCC consumers will opt for digital banking services over visiting a physical branch
Consumer appetite for digital banking services continues to grow in the countries of the Gulf Co-operation Council ( GCC ), accelerated further by the COVID-19 pandemic , according to a new survey conducted by Backbase with YouGov .
Eighty-nine percent of respondents to the survey said that they are now more likely to opt for digital banking services rather than make a physical visit to a bank branch , with consumers saying they prefer digital self-service banking solutions delivered with the same convenience as
MOVEMENT RESTRICTIONS OR CLOSURES OF BANK BRANCHES IN THE EARLY DAYS OF THE PANDEMIC FORCED CONSUMERS ONLINE .
their e-commerce , entertainment and transport solutions .
Transformation agendas for many banks in the region , with banking leaders recognising online banking services as becoming critical to increasing customer retention and growing revenue streams through personalised services .
Consumer expectations from digital banking has shifted from just day-to-day banking services and transactions , to also include more complex interactions , such as remote account openings or subscriptions to new products or services such as getting a loan or subscribing to insurance . However , 31 % of respondents say that their bank is weak when it comes to offering seamless access to online banking services , highlighting an area where banks need to step up their performance .
According to Backbase , many banks have relied on rolling out standalone applications and self-contained systems to add new functions and services to their online banking offerings , creating fragmented systems that don ’ t deliver a good experience to customers . With further Digital Transformation ahead , financial institutions need to ensure that they have the right platform to manage future expansion .
“ As the pandemic recedes , banks have the opportunity to provide enhanced customer engagement online , which will pave the way for physical branches to only deliver more complex , highvalue activities . To make sure that they can capitalise on changing customer behaviour , banks will need to break free from siloed technology architecture and bring engagement to the forefront of their digital operations . By adopting the single platform approach to technology that other industries have already mastered , financial institutions can be leaner and more flexible , with the ability to instantly execute new digital services while also providing enhanced customer support ,” said Matthijs Eijpe , Regional Vice President Sales EMEA at Backbase .
Customer experience differentiates successful digital financial services from failures with 44 % of respondents citing poor customer relations as a key influencing factor in making the decision to switch to a different bank . x
Movement restrictions or closures of bank branches in the early days of the pandemic forced consumers online , and banks responded by rapidly shifting products and services to digital platforms . The research showed that 77 % of respondents say that they use digital banking services at least once a week , and 30 % use services once a day or more .
The sudden increase in digital adoption has dramatically advanced the Digital
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