Many consumers are dissatisfied with the digital services offered by financial institutions, with a significant number seeking better access to financial products and personalised advice, research has revealed.
Moneyhub‘s new research highlights this gap, suggesting that financial firms have an opportunity to innovate by adopting technologies like open banking to better meet customer expectations and enhance their service offerings.
Its study found that 50 per cent of consumers want easier access to financial products and services without the need to visit physical branches, reflecting a clear demand for more convenient digital solutions. Additionally, 47 per cent of respondents expressed a desire for more personalised advice, highlighting the need for financial services to offer tailored solutions that address individual needs.
As the UK government pushes forward with initiatives such as the Digital Information and Smart Data Bill to enhance data usage for economic growth, the research indicates that financial institutions are at risk of falling behind if they do not modernize their digital offerings.
The report also revealed that 36 per cent of customers believe open banking could positively impact the quality and range of available products, with this sentiment even stronger among younger consumers aged 18 to 34.
Low friction personalisation
”Companies embracing open banking and open finance can already meet and exceed what customers have come to expect from their financial services providers and provide low friction personalisation at an affordable price point,” said Dan Scholey, COO of Moneyhub.
“The kind of data insights necessary to recognise and meet customers’ needs – and to keep meeting customers’ needs over their lifetime – can only be derived from understanding a customer’s full financial position. Without open finance, it is virtually impossible to provide this to the mass market and therefore comply with Consumer Duty regulations.
“The recent King’s Speech shows that the government means business when it comes to advancing the use of data to support economic growth, specifically by laying the foundation for the creation of Smart Data schemes.
“However, there’s only so much the government can do to bring modern data solutions to its citizens. Financial services, from banks to insurers, building societies to pensions providers or wealth and investment managers, on the other hand, already have the power to make a tremendous difference to their existing customer bases through the quick adoption of open finance and open banking solutions.”
The findings suggest that financial services firms have a significant opportunity to leverage technology to improve customer satisfaction, drive growth and stay competitive.
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