According to Accenture’s 2020 “Global Banking Consumer Study”, the replacement of in-person branch interactions with impersonal digital transactions through online and mobile channels during the COVID-19 pandemic has accelerated the ongoing erosion of consumer trust in banks.
 
The report, based on a survey of more than 47,000 consumers globally, builds on two similar reports from 2019 and 2017, Cnews.ru reports.

Accenture’s latest report reveals that without a strong emotional connection with their bank, customers are more likely to view banking services as a commodity, with price being the ultimate competitive differentiator. Specifically, consumers (37%) ranked value for money as a top three factor, making it the most important factor when dealing with a bank (an increase of ten percentage points from two years ago).

The report notes while banks have long been encouraging consumers to use digital channels for transactional banking activity, there was no way to predict how aggressively that trend would accelerate as a result of COVID-19. While banks often view broader digital adoption as a way to lower costs and provide services 24/7, the rapid pivot to existing and hastily launched digital services has all but removed the vital human element from banking, further eroding consumer trust. For instance, 29% of surveyed consumers trust banks “a lot” to look after their long-term financial well-being, compared with 43% two years ago.  



“At a time when customer trust is critically important, the recent shift to digital is threatening the relationships banks have worked to develop. The pandemic-inspired increase in digital engagement is a double-edged sword for banks. While it has allowed them to serve customers efficiently throughout the pandemic - and advanced their digital strategies by up to five years in some cases - it has pushed them to launch solutions that are functionally adequate but devoid of emotion. To forge strong customer connections, banks must reimagine the digital services they provide and make those connections more personal and relevant,” said Alan McIntyre, who leads Accenture’s Banking industry group globally.

The report suggests that banks need to evaluate how consumer behavior has been affected by the pandemic and determine which behavior changes are permanent – noting, for instance, the growing popularity of video calls. Prior to COVID-19, only 15% of consumers had spoken to a bank advisor via video call, but nearly half (46%) said they would be willing to do so when branches reopen, and 35% said they would prefer video calls to face-to-face meetings.

“Banks must embrace how evolving consumer behaviors are driving change and create digital tools that add relevance and personality into each interaction with the ability to swap in a human advisor at the right moment. The right approach will balance human and machine interactions, blending the convenience of more personalized digital interactions with human assistance when needed to create more value. This would go a long way toward reinforcing banks’ relationships with their customers, which in turn can build trust, loyalty and benefits for both,” McIntyre said.

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