Banks Need to Offer 3G Based Services to Retain Customers

3G wireless technology could be the holy grail for retail banks looking for that key differentiator to attract and retain customers according to a new report. New research in the UK and undertaken by the CRM consultancy, Detica reveals that almost half (42%) of those most likely to adopt 3G services may be prepared to switch banks if their own bank does not make 3G services available to them.

Approximately 2,500 consumers were interviewed during the course of the research programme, which consisted of a number of qualitative and quantitative phases. Of those who took part in the final quantitative phase, 82% said that they would expect their bank to make 3G services available and 72% said they would expect it to lead to service improvements.

Jeremy Braune, Head of Research for Detica, said: "The research has made it clear that consumers want 3G services from their bank and if their current banking provider does not make these services available, many will find one that does. This would suggest significant potential advantage to the retail banks that offer appropriate 3G services first and an equally significant potential loss of hard-won customers for those banks which drag their heels." The Detica research report said that 77% of those consumers interviewed during the final research phase found 3G services in retail banking either 'appealing' or 'very appealing' and 75% said they would use them if they were available. 59% also claimed that they would use these 3G services in preference to their existing banking facilities. Most (72%) banking customers said that their primary use of 3G services would be to view the balance of their account. Next on the list of priorities was the ability to view recent transactions and pay bills. Added Braune: "The research suggests that there is huge opportunity within retail banking for correctly configured services: consumers want 3G services and are saying they will use them. But in order for it to be successful, the research also shows that careful attention will need to be paid to the varying needs and behaviours of different consumer segments. The research identified widely differing levels of technological attitude and aptitude as well as a number of key behavioural and demographic drivers. These need to be assessed on a case by case basis if banks are to be able to deliver the right services to the right customers in the right way. It means that a 'one size fits all' approach is highly unlikely to capitalise upon the real market opportunity." This is borne out in the research which shows that (for example) the ability to pay bills is more appealing to older consumers (50% of 36-40 year olds regarded this as the most important part of the Financial Services proposition) than to younger ones (only 28% of under 25's regarded it as most important). The research also identified considerable variation in both the level and nature of support required by different consumer segments throughout the adoption process.'"

Posted to the site on 4th July 2002