Banks need to focus on customer emotional connection, Accenture report shows

The replacement of in-person branch interactions with impersonal digital transactions through online and mobile channels during the COVID-19 pandemic has accelerated the ongoing erosion of consumer trust in banks. Accenture’s 2020 Global Banking Consumer Study is based on a survey of more than 47,000 consumers globally, of which 2008 are from Singapore, and it builds on two similar reports from 2019 and 2017. The latest report reveals that without a strong emotional connection with their bank, customers are more likely to view banking services as a commodity, with price being the ultimate competitive differentiator. Specifically, over four in 10 Singaporean consumers (43%) ranked value for money as a top three factor, making it the most important factor when dealing with a bank. 

While banks often view broader digital adoption as a way to lower costs and provide services 24/7, the rapid pivot to existing and hastily launched digital services has all but removed the vital human element from banking, further eroding consumer trust. For instance, less than one in three Singapore respondents (29%) trust banks ‘a lot’ to look after their long-term financial well-being, compared to 41% in 2018. When asked how much they trust their bank to look after their data, fewer than four in 10 (37%) said ‘a lot’. However, the report also found that more than half (56%) of Singapore consumers believe that when providing advice, their bank has their best interest in mind ‘always’ or ‘most of the time’, and 63% believe that the advice is smart, personalised, and well-informed. 

These factors likely contribute to why 27% of Singapore consumers believe that banks are in the best position to provide them with products and services outside of their core areas of expertise, compared with only 19%, 15%, and 12% of respondents who said the same for tech providers, social media companies, and neobanks, respectively, according to the official press release.