What is meant by self-service in banks

What millennials expect from their bank - and what they get

They are a popular target group, but banks and insurance companies in particular often find it difficult to understand millennials and make them adequate offers. A comparative study by the market research institute Censuswide on behalf of the digital banking software provider Crealogix has now examined the sensitivities of Generation Y in Germany, Austria and Switzerland and put them in relation to one another. Around 1000 bank customers between the ages of 18 and 45 were asked about their expectations of credit institutions and their behavior when dealing with the bank.

The majority of millennials, that's for sure, are at home in the digital world. It is therefore hardly surprising that digital channels are clearly ahead of the curve in everyday life with the majority of younger bank customers. In Germany, 79.8% of them prefer digital banking to manage their financial affairs. In Switzerland, 80% of the respondents stated that they also or exclusively carry out everyday tasks such as transfers and checking the account balance online; in Austria this figure is even close to 90%.

However, that does not mean that the bank branch has completely served its purpose. Many younger bank customers do not want to miss out on the local branch and personal advice. The most important thing for millennials in Germany is a visit to the branch: For 31% of them, a branch near their place of residence is the most important criterion when deciding on a bank. In Austria and Switzerland this value is 26% each.

Younger customers use both the branch and online banking specifically to regulate their financial affairs - a hybrid advisory approach is therefore indispensable in order to do justice to millennials. "

Maryam Danesh-Kajouri, Head of Global Product Marketing at Crealogix

Mobile banking is not only gaining influence among millennials

Another result of the bank customer survey in the three countries: Mobile banking is on the rise and is gaining in importance, especially for the younger target groups. More and more bank customers prefer mobile devices to do their banking. Mobile enthusiasm is currently highest in Austria: 37% of 18-45 year olds prefer banking via smartphone or tablet, Switzerland and Germany are slightly behind with 29.2% and 27.4% respectively. The fact that the acceptance of mobile banking is already so high is surprising, as mobile and peer-to-peer payment are often not yet possible despite all the efforts of banks, FinTechs and technology providers and there is often no getting around cash. However, this should also mean making transfers and similar services, which can already be achieved with a smartphone or tablet.

Differences in customer satisfaction

When it comes to satisfaction with your bank, the bank customer survey shows light and shadow. Bank customers in Austria are the most satisfied: 72.6% of millennials answered the question “If you think about your other consumer habits, such as online shopping or visiting stores: Are you satisfied with the customer experience your bank offers you? “With“ Yes ”. While Switzerland is only slightly behind the Austrian banks with a value of 69.8%, many financial institutions in Germany obviously have room for improvement in terms of customer perception: 39.2% of millennials see a need for improvement in the service of their bank. Among the 18-24 year olds, only 57.4% of those questioned are fully and completely satisfied with their bank. In Germany in particular, credit institutions are challenged to question the modernity and customer orientation of their services.

Open banking: between enthusiasm and skepticism

In the bank customer survey, Open Banking was also a topic of the future that was discussed. Here, financial institutions open their infrastructure to third-party offers and go beyond the requirements of the new EU Payment Services Directive PSD2. In an open banking world, customers can ideally access all financial services via a single app. In Germany, such a platform strategy is entirely in the interests of customers: At 66.1%, a large majority of German millennials would welcome access to all financial information via a single app. In other countries, such as Great Britain, the level of acceptance for open banking is similarly high.

In Austria, on the other hand, only 34.9% of the bank customers surveyed are of the opinion that such an app could make their everyday lives easier. In Switzerland, too, enthusiasm for open banking can still be expanded with a value of 41.2%. It is questionable whether the range of FinTechs (and thus the options for using Open Banking) in these two countries is lower than in Germany, but it could be one reason for this. Austrian and Swiss bank customers express reservations about open banking, especially with regard to the security of the applications.

Banks are required to take these concerns about open banking seriously. Multi-level security strategies with strong customer authentication and fraud prevention measures should be part of every open banking initiative. It is therefore advisable for banks to position themselves with open banking offers at an early stage - because it is easiest for first movers to bind customers to their institute in the long term through new offers within an open ecosystem. "

Ludwig Volk, Head of Product Management Crealogix

Once a bank with a digital banking infrastructure and open interfaces (APIs) has created the technical basis for open banking, the financial institution can orchestrate an individual customer experience with its own apps and third-party applications. "Against the background of intensifying competition in the banking sector and an increased willingness of customers to switch, the creation of a positive customer experience is becoming more and more important for financial institutions," continues Volk.

The three bank customer surveys for Germany as well as Austria and Switzerland are available for download free of charge. partly

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