81 per cent of consumers said that more flexible and easy-to-access banking would motivate them to switch to a challenger from traditional banking providers, according to new research from Capgemini.

The world retail banking report compiled by the technology consulting firm in association with Efma, found warned that retail banks are facing a choice between aligning their offerings to customer expectations or run the risk of losing those customers altogether.

The report, which contains insights from more than 8,500 banking customers and 130 senior executives in leading banks across 23 markets, also reported a growing trend towards platformification, with 66 per cent of bankings currently using a Banking as a Service (BaaS) platform, while 25 per cent are in the process of developing one.

The report also recommends that banks should continue to collaborate with non-financial institutions to offer more integrated experiences beyond traditional banking. When it comes to new data-driven tools confidence is rising, with 61 per cent of European financial executives saying they feel positive about Open Banking compared to 55 per cent in 2019.

Capgemini’s analysis of the findings also suggested that long-term growth will require a data-driven, hyper-personalised approach, with more than 85 per cent of consumers saying they would be prepared to share their data in exchange for a more personalised experience.

Anirban Bose, chief executive of Capgemini’s financial services and group executive board member said: “By overcoming outdated legacy mindsets and adopting Banking-as-a-Service, financial institutions will move beyond their core banking products, create new offerings, and provide their customers with personalized experiences.”

He added: “Banks must focus on how they can add value to their customers to retain and engage them. Through platformification and by leveraging data, banks can better cater to the needs of the modern customer as well as create new revenue streams.”

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