Fintech & Banks – Capgemini World Retail Banking Report 2016

By Capgemini and EFMA

Capgemini, together with EFMA, has conducted a global study to gauge customers’ attitudes towards their financial service provided by fintech and banks.  The survey was conducted with more than 16,000 customers in 32 countries on their experiences across 80 touch points.  Below is the high level summary of the findings.

Customer Experience Index (CEI)

Overall, there is an improvement on CEI by 2.9points in 2016 from almost all regions due to the enhancement of banking digital capabilities.  Highest gain is in Central and Western Europe.   More than half of customers stated that they are likely to stay with their banks for the next six months.

However, younger generation customers show lower level of positive experiences compared to other age groups, as they are looking for more digitalised / innovative products to serve their needs.

Fintech penetration

Fintech firms across regions are increasingly taking on a larger role in bringing innovation to financial services.  They are redefining banking, at the same time raising customers’ expectations for traditional banks.

Almost two third of the surveyed customers are using fintech products or services globally.  Penetration is highest in the emerging markets and in younger customers.  In Asia-Pacific, 58.9% of banking customers also use fintech products or services.  The adoption growth led by Gen Y customers.

“fintech adoption is expected to broaden across the board.  Most individual fintech firms have the advantage of being highly specialized, providing attractive alternatives to mostly commoditized banking products and services.”

Earning the Trust

Banks is however still the winner in achieving customers’ trust (60% of customers completely trust their banks), compared to fintech firms (48.2% of customers completely trust their fintech firms).  With regulators paying closer attention to fintech firms, tightening up customer protection and privacy concerns, it is expected that fintech firms’ customer trust level will rise.

Fintech proposition

Over and above the innovations and fresh perspectives that fintech firms bring into financial services, customers also value:

• Ease to use
• Faster service
• Good experience

54.9% of customers are likely to refer a fintech provider to a friend.

Defining the Future of Banking

The advent of Fintech firms has raised customer expectations in financial services offering.  Banks are looking into new ways to keep up and respond to the changes that fintech firms have brought about.  This include:

• Collaboration, by working together and synergising the strengths of both parties, banks can grow their existing business or entering into the new one
• Invest into fintech firms.
• Build internal capabilities to compete with fintech firms

InvoiceInterchange, fintech and banks

InvoiceInterchange is a Singapore Fintech start-up company where we look forward to collaborate with banks to further enhance financial services that are much needed by today’s SMEs.

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