NTT DATA Global Study Finds Nearly 50% of Customers Want Financial Institutions to Act as a Conscientious Advisor on Major Spending Decisions
According to research findings released today by NTT DATA, there is ample opportunity for financial institutions to harness the power of AI to build more meaningful connections and experiences with customers - vastly improving both retention and acquisition. In the global study, customers provide striking testimony about what they would like their financial institutions to provide for them:
"Customer needs are changing, and so are the ways in which financial institutions need to interact with them," said Wayne Busch, President Financial Services and Insurance, NTT (News - Alert) DATA Services. "Advancements in artificial intelligence, machine learning and data intelligence are giving banks vast capabilities to deliver what customers want - hyper-individualized, relevant and timely financial guidance to achieve their life ambitions."
To meet these customer expectations, accurate, real-time data must be at the core of every customer interaction. Better data - and the ability to act on its insights through AI - enables FIs to anticipate customer needs, provide personalized financial counsel, improve data protection, automate manual transactions, and power proactive alerts.
"Futurists are the most impotant customer segment for financial institutions to understand as they pose a substantial opportunity for growth and customer retention," said Kaz Nishihata, Executive Vice President, NTT DATA. "We believe over time that technological progress will turn the customer segment that today says they will not pay for personalized proactive services into Futurists."
To explore how AI can enable FIs to attract and retain customers in a digital world, NTT DATA surveyed 4,807 consumers and 476 senior executives in banking, brokerage, capital markets, wealth management, and cards and payments across the U.S., UK, Germany, Spain, Italy, Japan, Brazil and Mexico in December 2020.
Key study findings include:
1) The top five reasons customers leave their financial institution center around price, access, and trust (ranked in priority order).
2) Trust is most important to customers.
3) Gen X and Millennials are willing to pay more to receive personalized recommendations to improve their financial well-being.
4) Customers are willing to share personal data in exchange for personalized proactive services. 61% of consumers are motivated to let go of their reservations around privacy and security in exchange for managing their individual spending budget and getting online individual advice to save money. For example, customers said they would:
To download a copy of NTT DATA's research report, "Get Personal: Banking on AI to Help Customers Reach Their Hopes and Dreams," visit https://us.nttdata.com/en/engage/banking-on-ai
About NTT DATA
NTT DATA is a leading IT services provider and global innovation partner headquartered in Tokyo, with business operations in over 50 countries. Our emphasis is on long-term commitment, combining global reach with local intimacy to provide premier professional services varying from consulting and systems development to outsourcing. For more information, visit www.nttdata.com.