Contact Your Financial Adviser Money Making MC
3 July 2017
While
the government has been pushing people to go online when it comes to banking,
the branch still continues to dominate banking channels in India, with 94 per
cent of retail banking customers having visited the branch/store at least once
in the past 12 months, a new study revealed on Monday. The Total Investment & Insurance Solutions
According
to the 2017 Oracle J.D. Power India 'Retail Banking Study,' despite the impetus
provided by demonetisation, digital banking is not yet a pervasive experience
in India.
"Most
banking relationships still begin and continue at the branch. However, there is
great potential for banks to move more into the digital space. Only 51 per cent
of retail banking customers have a reliable online banking experience with
their main financial institution," said Gordon Shields, senior director,
J.D. Power, a US-based global marketing information services firm. The Total Investment & Insurance Solutions
The
results was based on in-person interviews with 5,368 retail banking customers
conducted between February and April 2017 across 14 states and included both
private and public banks.
"In
fact, overall customer satisfaction with banking in India is lagging
significantly behind other key markets at 672 index points, compared to the
industry average score reported in other J.D. Power studies in China (806), the
USA (793) and Australia (748)," Shields added.
The
study measured overall satisfaction in five factors: account activities (39 per
cent); account information (18 per cent); facility (17 per cent); product
offerings (14 per cent) and fees (12 per cent). The Total Investment & Insurance Solutions
While
overall customer satisfaction with mobile banking is markedly higher (693) than
with In-Person Branch interaction (676), only 9 per cent of India retail
banking customers use mobile banking for everyday transactions. The Total Investment & Insurance Solutions
"Among
the 48 per cent of customers who have yet to download a banking app, one-fourth
state lack of security is a key reason for non-usage," Shields
noted.
Nearly
three-fourths (73 per cent) of customers believe their financial needs were not
fully understood before they were offered new products, with only 7 per cent
having had fees and pricing of products explained. The Total Investment & Insurance Solutions
"As
India embarks on its digitisation agenda, results on ground exhibit a contrary
reality," said Kiran Kumar Kesavarapu, APAC leader, industry innovation
advisors-financial services Oracle.
"We
believe the issue lies in customer engagement models that Indian banks employ
today and related security uncertainties when transacting online. This can be
addressed easily and quickly," Kesavarapu added. The Total Investment & Insurance Solutions
Private
banks outperformed public banks and were rated higher in overall satisfaction
(680) than public banks (666). The Total
Investment & Insurance Solutions
Private
banking customers are more likely to recommend their bank to friends and
relatives (89 per cent) than public banks (86 per cent).The Total Investment & Insurance Solutions
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