Over Half of Consumers Feel Undervalued by Their Bank

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#AceFinanceNews says over half of “Consumers feel undervalued by their Bank” leading banks to look at closer at  their customer experience gap,  with friendly, knowledgeable staff and banking services as the consumer demands

 

Almost half of consumers in GBGermany, France and the US feel their bank does not value them as a customer ( 48 per cent), according to new Ipsos MORI research commissioned by GMC Software Technology. Consumers want to decide how they bank, with almost three-quarters wanting to request the format in which they receive information from their bank (72 per cent) and also at a time that suits them (74 per cent). Banks therefore need to listen to consumers to deliver the services they need. However, only 19 per cent of consumers really believe banks understand
how to deliver good customer experience.

 

Ipsos MORI

Ipsos MORI (Photo credit: Wikipedia)

 

The research of 4,032 consumers looked at what consumers really think about their bank’s customer experience and how they are valued. It offers insight into how banks can improve their relationship with customers by listening and providing the right information, at the right time, via the right, optimized channel with a particular focus on on-line and mobile.

 

Improving The Customer Experience: Just six per cent of consumers in France believe that their bank really values them as a customer. And elsewhere, the banking industry does not fare much better with ten per cent in GB, 20 per cent in Germany and 27 per cent in the US [tab 0240]

 

In order to improve the banking customer experience, the top three points for each country are friendly and knowledgeable staff (US 60 per cent; France 50 per cent; Germany 45 per cent; GB 45 per cent); enabling customers to bank when and how they want (France 56 per cent; US 45 per cent; GB 49 per cent; Germany 42 per cent); easy access to the branch (GB 39 per cent; Germany 34 per cent; France 31 per cent; US 49 per cent).

 

Bill Parker, chief marketing officer, GMC Software Technology, said: “It’s time the banks started to show that they value their customers by listening and allowing customers to be involved in decisions that affect the banking experience. Banks should provide multiple channels of communication, but they should ask consumers which ones they want to use, not tell them.”

 

Screenshot of a typical SMS Banking message on...

Screenshot of a typical SMS Banking message on a mobile screen (Photo credit: Wikipedia)

 

Constraints of On-line and Mobile Banking:  The demand for on-line banking is increasingly obvious. Online-only is already the most common way to view bank statements (36 per cent of all bank customers have on-line-only statements) and not just among Generation Y. It is important not to assume that on-line/mobile banking channels are the preserve of the young. For example, all age groups are using on-line-only statements. Of the under 31 year old’s (Gen Y), 37 per cent use on-line-only statements as are 33 per cent of the 55-70 year old’s.

 

Current On-line and Mobile Banking Services Have Considerable Constraints: Two thirds (65 per cent) do not believe their on-line banking delivers an effective level of customer service, while just 3 in 10 (29 per cent) feel it is truly interactive i.e. you can present your bank data in any way you want or link back to your bank with questions. Mobile banking fares little better, with only 23 per cent of banking customers finding the service satisfactory. The nature of both on-line and mobile lend themselves to a more dynamic, interactive relationship with the consumer rather than presenting static content that could, just as easily, be sent by post.

 

The mass adoption of on-line statements is driven by customers appreciating its convenience (80 per cent), environmental benefits (71 per cent) and increased security compared to paper (39 per cent). Revealing the level of skepticism towards banks, 67 per cent of bank customers suspect banks are pushing on-line statements in order to save money.

 

“The number of ways by which a consumer can interact with their bank is increasing, with traditional bricks and mortar giving way to call centres, internet and mobile banking as well as social media. It is now time to close the customer experience gap. The research reveals that there is a time and place for each channel, and banks need to adopt the technologies and strategies that will help them engage effectively with each customer
through the optimized channel that each customer chooses,” continues Parker.

 

Consumers Managing Money More Effectively: Despite the lack of interactivity, on-line statements clearly encourage customers to
manage their money more effectively. Two thirds (66 per cent) of those who use on-line statements view them at least once a week. Of those using statements on a mobile device, 61 per cent view them at least once a week. In sharp contrast, of those who rely on printed statements, 58 per cent view their bank statement only once a month onwards.

 

With on-line being the most popular way to view bank statements, and viewed more frequently, the rise of consumer technology seems to be improving the nation’s ability to manage its money.

 

Download the report ‘End of the banking autocracy: why banks must understand value and bring back trust’ here [http://www.gmc.net/en/improving-customer-communications ].

 

REPORT STATISTICS AND RESEARCH GUIDELINES:   

 

The research was conducted on i:omnibus, Ipsos MORI’s online omnibus, in GB, France, US and Germany between 25-30 October 2013.

 

Questions were asked online of 1,018 GB adults aged 16-75, 1,004 French adults aged 16-74, 1,000 US adults aged 18-75 and 1,010 German adults aged 16 to 70 (total 4,032 consumers).

 

To be nationally representative, the survey data was weighted by age, gender, region, working status and main shopper in GB; age, gender, region, working status, main shopper, social grade and working status in France; age, gender, region, working status, working status and income in the US; and age, gender, region, working status, household size, employment status, main shopper and size of town in Germany.

 

GMC Software Technology AG: delivers seamless CCM solutions that streamline document creation processes and produce higher quality, relevant communications of all types for delivery through print, electronic and interactive channels.

 

GMC helps thousands of clients worldwide across the banking, insurance, retail, business services, telco/utilities and healthcare industries gain customer insight to improve the customer experience by getting communications to market 70% faster, improves operational efficiencies by more than 50%, and expands business services for more lucrative opportunities.

 

For more information about GMC’s award-winning robust and scalable GMC Inspire
[http://www.gmc.net/en/gmc-inspire/gmc-inspire-overview ] solution, visit:
http://www.gmc.net.

 

Corporate & AsiaPAC
GMC Software Technology
+44-(0)-845-223-2443
press@gmc.net

 

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Sterling Kilgore
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sarmstrong@sterlingkilgore.com

 

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APPENZELL, Switzerland, November 13, 2013 /PRNewswire/ —

 

GMC Software Technology AG

 

 

#acedebtnews, #customer-experience, #financial-services, #france, #germany, #gmc-software-technology, #ipsos-mori, #mobile-banking, #online-banking, #united-states

Would You Trust Your – Social Media Page – And Your Type Of Friends – To Be Your Credit Checker?

According to a post on allfacebook this maybe one way of companies agreeing you can have a loan, or not!

 

Loans

Loans (Photo credit: zingbot)

 

How you socialize on-line, who with, and how often can make or break your loan application: True or false? It is true, surprisingly. And it is likely to become more so, in the very near future according to a number of lenders!

 

With banks still reluctant to lend and a rapid rise in sub-prime customers, it is more essential than ever to be realistic about the responsibility of lending money to finance big-ticket items with long-term repayment schedules. This is in the best interests of both parties.

 

Contrary to the picture painted by some commentators, who are keen to insist that finance companies are ruthless operators, luring unsuspecting and  non-credit-worthy clients into their snares, those of us who are in the business actually take our applicants very seriously, indeed. We would never want to put anybody into an untenable, unrealistic, and unaffordable position, whereby they were compromising their entire lifestyle for the sake of, say, a new car.

 

Likewise, we do not want to take on customers who are not going to pay us back. So where does this leave us, morally, in the unprecedented access to individual data now available thanks to the information-gathering properties of the Internet?

 

Lenddo is not alone in adopting this investigative stance. Movenbank assesses numbers of followers on Facebook, Twitter, and LinkedIn to evaluate prospective customers’ influence and social standing. Payment information can also be sourced from sites like eBay, PayPal, and Amazon.

 

Other online habits are unwitting traps. Many users are guilty of being slapdash with spelling, punctuation, and grammar in email and text messaging, often because those communications are sent in haste or on the move and without much attention to detail. Such traits — using all capitals or no capitals, for example — are taken as dubious signs by German lender Kreditech, which will not lend to anyone who fills out one of its forms in this careless way.

 

Another habit to be aware of is that the amount of time you spend browsing and investigating a site can be closely monitored and assessed. Payday loan outfit Wonga likes to see that a person has gone through various options before they submit. Someone who goes straight to click for the highest loan possible without due consideration is high-risk to Wonga.

 

We are, each and every one of us, leaving a digital footprint that cannot and will not ever be erased and that speaks volumes about us. Should we be surprised when this evidence is examined? Kreditech is branching out by selling its technology to online lenders in the Czech Republic and in Russia, andKabbage, another online cash-advance service, has plans to do the same. It would appear that this model is about to go mainstream.

 

http://allfacebook.com/louis-rix-guest-post_b124434

 

Whereas it could be choosing your friends wisely on your Facebook page, as being friends with some one who defaults on a company’s loan, from a lender to whom you applied ,may not allow that lender to consider, you  a good credit risk!

 

Choose your Facebook friends wisely; they could help you get approved — or rejected — for a loan.

 

A handful of tech start-ups are using social data to determine the risk of lending to people who have a difficult time accessing credit. Traditional lenders rely heavily on credit scores like FICO, which look at payments history. They typically steer clear of the millions of people who don’t have credit scores.

 

But some financial lending companies have found that social connections can be a good indicator of a person’s creditworthiness.

 

One such company, Lenddo, determines if your friends on Facebook (FB) with someone who was late paying back a loan to Lenddo. If so, that’s bad news for you. It’s even worse news if the delinquent friend is someone you frequently interact with.

 

“It turns out humans are really good at knowing who is trustworthy and reliable in their community,” said Jeff Stewart, a co-founder and CEO of Lenddo. “What’s new is that we’re now able to measure through massive computing power.”

 

http://money.cnn.com/2013/08/26/technology/social/facebook-credit-score/

 

Traditional lenders are still sticking to the traditional modes of enquiry, using credit scores like FICO or agencies like Experian to assess lending suitability, but many of the newer and more tech-savvy startups are taking a different approach. They scrutinize social data and online behavioral patterns to make their decisions and determine credit risk.

 

For example, one company, Lenddo, in what it is calling a “trust-based model,” will not lend money to someone who is friends on Facebook with another person who has been late, or defaulted on a loan from it in the past. If the friend is someone with whom you have frequent interactions, the decision is even more likely to go against you.

 

So what is the best way to apply for a loan well first ask someone who you trust in finance, or you can even ask me, as l do not lend myself and will recommend a reliable lender and even help you complete the paperwork!  But most of all be honest ,do not cover up other lending and above else, only borrow what you need and not what you want!

 

       

 

 

 

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