Accenture’s biennial Banking Consumer Study, which surveyed 49,300 respondents across 39 markets on their banking preferences and behaviours, including 2,000 in India, found that banks that rekindle personal customer relationships and foster advocacy could boost organic revenues.
Accenture analysis revealed that banks globally with the highest advocacy scores (top 20%) grew their revenues 1.7x faster, with advocates holding more products on average and allocating a greater share of their wallet at these banks.
While 46% of customers in India surveyed have stayed with their main bank for over seven years, 87% are embracing multi-banking relationships and one-fifth (22%) are using a digital bank in some capacity (main or secondary bank). While digital has allowed a lot of self-service capabilities to customers and helped banks become more efficient, it has come at the cost of becoming impersonal and weakened customer loyalty, according to the study.
So, what can banks do to build customer advocacy and address the eroding loyalty? The study recommends that banks focus on four key drivers:
- Trust and transparency (Reassure customers): Build trust and reassure customers by being transparent about fees and rates, and by protecting customer data.
- Personalisation (Remember customers): Use data and analytics to remember and understand customers’ needs and preferences, and then tailor products, services and advice accordingly.
- Customer service and channels (Delight customers): Provide a seamless and connected experience across all customer service channels to ensure meaningful interactions.
- Competitive financial benefits (Reward customers): Strike the perfect balance between fair pricing and delivering clear, tangible value and rewards that resonate with customers.
Consumers split about their banks using AI and have data concerns
52% of consumers in India would be comfortable with banks extensively using gen AI to analyse their personal and financial data to receive tailored products. And a majority (88%) in India would be open to using an AI-powered financial assistant to help with tasks like ensuring they don’t miss payments and avoid late fees, along with monitoring their account balance. However, majority consumers in India did also show concerns with how their bank use their data.
92% of respondents in India said the most important factor when choosing a bank is data security, fraud protection and privacy. These factors are critical to maintaining consumer trust and banks should treat them as more than just a compliance exercise. To build confidence in AI solutions, banks should be transparent about how the tech is used in data processing and provide customers with more control over AI-driven personalisation.
Branches remain in demand
72% of respondents in India like seeing branches in their neighbourhood as it confirms banks’ stability and availability, while 73% turn to branches to solve specific and complex issues. There is an opportunity to selectively replace in-branch experiences with digital channels. Customers are increasingly open to digital experiences, remote advisory services, and streamlined processes for basic tasks such as updating bank details.
Consumers feel overwhelmed by too many options
More than half of consumers in India (58%) feel, at least sometimes, pushed toward products that seem to be more beneficial to their bank than themselves. This can erode trust and make customers hesitant to engage with their bank. Customers often feel overwhelmed by the multitude of options available and frustrated by the effort required to determine the best choice for their needs. Therefore, offering hyper-personalised products and services, along with customer journey support, product features and terms and conditions guidance, can help banks differentiate their services.
Banks will be better served to prioritise value added services
While 83% of customers in India say interest rates are an important factor when selecting a bank, some (28%) don’t know the interest rate for their savings account. Indian users are increasingly interested in enhancing their financial knowledge through educational resources and personalised advice. This can strengthen engagement and trust by reinforcing the role of banks as key financial advisors, with 57% of Indians expressing a strong interest in expanding their financial knowledge.
Manoj Singodia, MD and Lead – Financial Services, Accenture in India said, “As gen AI becomes more mainstream, with banks embracing it to power new services and enhance customer experiences, addressing consumer concerns around privacy and security will be essential. Data and AI hold the key for customer service agents and relationship managers to deepen their relationships with customers by offering more personalised experiences, thereby building long-term loyalty.”
