10/05/2011
By Scott Thompson
Four out of 10 consumers would prefer to learn about new financial services technology by talking with someone at their bank, rather than learning it on their own. That’s according to a study recently released by First Data and Market Strategies International.
“Our goal is to provide real, actionable data to help our financial institution clients develop focused technology plans,” says Larry Drury, senior vice president, global marketing, First Data. “These results will help our clients strike the right balance between technology and personal relationships regarding their retail banking customers.”
Other findings include: only 15 per cent of consumers are currently using mobile banking, and three per cent indicated they intend to start using it in the next 12 months; two-thirds of consumers are familiar with account alerts, only 37 per cent of banked consumers currently use them; six in 10 consumers surveyed still receive paper statements.
The research identified six distinct categories, or segments, of banking consumers based on key demographic, behavioral and attitudinal differences, including their inclination to use banking technology products and services. These are: Fast Trackers – young family types who rely on smart phones and banking apps; Young Aspirationals – singles with varied interests and little banking loyalty; Simplifiers – middle-aged lower income wage earners loyal to their local banks; Middle of the Roaders – middle-aged wage earners who wait until technology is proven; Value Seekers – older, well educated and financially comfortable who aren’t interested in a lot of technology; Conventional Stalwarts – fixed-income retirees who prefer paper statements and live tellers.
“Having a better understanding of consumers’ acceptance of technology, and the level of technology they’re comfortable with, will help financial institutions reverse the troubling trend brought on by recent economic challenges,” says Mark Willard, senior vice president and head of the financial services division, Market Strategies International. “We need to help financial institutions drive more transactions and strengthen loyalty. Our research points to the way technology can be leveraged to achieve those goals.”
