Digital Banking needs to be more humanized, bank branches are still relevant in India, Accenture survey finds

• More than six in 10 respondents (67%) said the majority of their mobile banking logins are simply to check account balances.
• Nearly four in five respondents (78%) across age groups like seeing bank branches in their neighborhood.
• Nearly nine in ten (88%) recently acquired a financial services product from a provider other than their main bank.

Globally, banks could capture untapped revenue by  strengthening fraying customer connections with life-centric solutions and better engagement across digital and physical channels, according to Accenture’s Global Banking Consumer Study. Accenture surveyed 49,000 consumers across 33 countries, including 2,000 in India.

Given below are the India findings of the report.

Bank branches still relevant, but their purpose has evolved

Nearly four in five (78%) of consumers in India across age groups like seeing branches in their neighborhood, as they portray stability and availability. In addition, seven in 10 (70%) turn to branches to solve specific and complex problems. The report suggests that branches be repositioned as advisory centers and deliver a more personalized experience with a digital-first mindset.

Consumer experiences are becoming transactional and fragmented

The report notes that consumers’ relationships with their banks are increasingly becoming transactional and impersonal. More than six in 10 respondents (67%) in India said the majority of their mobile banking logins are simply to check account balances. Only 42% of respondents rated their primary bank’s customer service as excellent and more than half (54%) had problems getting human support when they needed it.

The research found that just 36% of survey respondents rated their bank highly in terms of the range of products and services offered, and only 35% rated their bank highly on the competency of tailored financial advice. This is leading consumers to seek out new providers. Nearly nine in ten (88%) recently acquired a financial services product from a provider other than their main bank.

Many consumers, especially younger age groups find it difficult to manage their growing number of financial service providers due to increased fragmentation. 53% of consumers often lose track of their financial products and services. This explains the strong need for a single aggregated view of all their financial products and services across different service providers.

The revenue opportunity for banks

Banks can leverage artificial intelligence, and data and analytics to better identify customers’ financial intent, have more personalised conversations that flow seamlessly across digital and physical channels, and deliver relevant and holistic products and services, including non-banking offerings. A digital first mindset and digital-native process orientation can also help enhance bank employees’ productivity and enable them to resolve customer issues faster.

Accenture estimates that by taking these steps to reestablish personal relationships, banks globally could increase revenues from primary customers by upwards of 20%, or nearly $400 per customer per year, depending on the market.

Sonali Kulkarni, Lead – Financial Services, Accenture in India said, “Banks in India have achieved significant digital penetration across their value chain. But they are now faced with the reality that digital channels are functionally correct but emotionally devoid. Banks need to bridge this divide by humanizing and personalizing digital transactions. They must leverage data and AI to go beyond processing demographic and financial information about customers, and instead gain insights on their daily lives, aspirations, and intent behind obtaining certain financial products. Only then can banks give meaningful advice to customers and sell complex banking products.”

Sonali added, “The consistent expansion of the branch network in India despite growing digitalisation shows that banks understand that consumers still value bank branches. However, given that today’s consumers don’t operate in isolated swim lanes of digital vs. branches, banks must enable more connected and seamless experiences across channels. Secondly, branch staff must be upskilled to build digital fluency and advisory capabilities so branches can offer more personalised and advisory services.”

About the research

Accenture surveyed 49,000 respondents across 33 countries: India, Australia, Belgium, Brazil, Canada, Chile, China, Colombia, Denmark, Finland, France, Germany, Greece, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Singapore, South Africa, Spain, Sweden, Switzerland, Thailand, the U.K. and the U.S. (2000 of these respondents were from India.) Respondents were required to have a bank account and covered multiple generations and income levels. The survey was conducted online during July and August 2022. The revenue estimates were based on an analysis of survey and financial data across nine markets (Australia, Brazil, Canada, Italy, the Netherlands, Singapore, Spain, the U.S. and the U.K.