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Two Out of Five Canadian Consumers Want Automated Recommendations from their Banks, Accenture Survey FindsFaster service and lower costs among benefits consumers expect from robo-advice TORONTO, June 30, 2016 /CNW/ - More than two out of five Canadian bank customers (43 percent) are open to using automated recommendations for banking services – computer-generated advice and services, independent of a human advisor – according to a new report on the banking industry by Accenture (NYSE: ACN). Canadian consumers welcome robo-advice from banks to determine how to allocate their investments (77 percent), determine the type of bank account to open (76 percent), and plan for retirement (70 percent). The report, titled "Banking on Value: Rewards, Robo-Advice and Relevance", is based on a survey of more than 4,000 retail bank customers in North America, including 1,210 in Canada, and is the most recent report in Accenture's multi-year research on consumer banking attitudes and behaviours. "Robo-advice is gaining significant traction in the wealth management industry in Canada, and our research shows that consumers are open to working with robo-advisors for their retail banking needs," said Bob Vokes, managing director of Accenture's Canadian financial services practice. "Consumers are excited about the potential savings and accuracy that robo-advice offers. We are now seeing leading financial services players starting to embrace intelligent automation and robotics to simplify and improve the customer experience." This year's survey found that speed and convenience (50 percent for Canada vs. 49 percent for US) and lower costs (33 percent for Canada vs. 27 percent for US) were cited by respondents as the primary benefits of robo-advice, with millennials and mass-affluent consumers expressing the most interest in the service. For the purposes of the research, mass-affluent consumers are defined as those earning over $100,000 in annual income. Non-traditional banks continue to gain momentum "Consumers no longer view using multiple financial service providers as a hassle, which now puts pressure on these firms to not only attract new customers, but also to find ways to retain existing customers," continued Vokes. "According to our research, 77 percent of Canadian consumers consider their relationship with their bank to be purely transactional – this is a missed opportunity for banks which now have access to technology that can help them provide more tailored offerings, particularly as more consumers are open to receiving value-added services from their bank. In fact, 41 percent of Canadian consumers said the top reason they would stay loyal to their bank is if it offered discounts on purchases." Among Canadians, 23 percent would consider switching to a branchless bank, which is up eight percentage points from last year. Across North America, 26 percent of millennials would consider switching to a branchless bank (up three percentage points from last year), and 34 percent of mass affluent consumers would do so, up ten percentage points from 2015. Online channel dominant, but branches still relevant By a wide margin, Canadians who use the branch prefer "full service branches," which include extended office hours and full sales support, over all other formats (64 percent). However, 19 percent of millennials prefer "light branches" – highly automated with videoconferencing access to remote specialists. According to the survey, the vast majority (87 percent) of Canadian consumers say that they will use the branch in the future. Respondents said they anticipate using the branch two years from now because "I trust my bank more when speaking to someone in person" (50 percent vs. 48 percent for US), and "I receive more value from my bank when speaking to someone in person" (49 percent vs.47 percent). "Today's consumers want it all, and those expectations are equally high when it comes to their bank," Vokes concluded. "Online banking remains the most popular channel; however, Canadian consumers continue to see value in branches for services and they will continue to do so for the foreseeable future. Even as Canadian consumers indicate their interest in artificial intelligence for banking, they demand human interaction at the branch to handle their more complex banking needs. Consumers expect a seamless experience that can blend their digital and physical channels, and the banks that are able to deliver this experience will earn the loyalty of their customers." Despite security breaches, customers willing to share data Methodology About Accenture SOURCE Accenture |