win-win banking relationships?...accenture subject infographic detailing why banks should find ways...

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PURPOSE- DRIVEN BANKING Can trust create win-win banking relationships? WINNING IN THE DIGITAL ECONOMY SERIES ABOUT THE RESEARCH Accenture surveyed 15,000 consumers and analyzed retail banks’ revenue in 12 countries. Copyright © 2020 Accenture. All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. This document is produced by consultants at Accenture as general guidance. It is not intended to provide specific advice on your circumstances. If you require advice or further details on any matters referred to, please contact your Accenture representative. Our new research and analysis show that banks that adopt a set of strategic actions designed to redefine their purpose, rebuild customer trust, and establish a foundation for new advisory propositions, can increase their revenue by 9%. Helping customers manage their money better will reduce revenue but earn trust. This will benefit both parties: sound advice increases customer wealth, which trusted banks can help them manage. Banks with high levels of customer trust enjoy faster revenue growth than their peers: An average of 8.4% vs 6.2% Steps to purpose- driven banking A set of specific strategic measures can help banks build trust and grow: PILLAR 1 Immediate changes to increase efficiency and gain a better understanding of how to meet customers’ needs, thereby protecting and growing market share. PILLAR 2 A steady shift to expand the scope of financial advice, addressing consumers’ unmet needs and creating new revenue streams. Trust in banks has decreased over the years While consumers trust banks to protect their data and process their transactions, they are much less confident about banks looking after their best interests. trust their bank to look after their long-term financial well-being of banks’ revenue is at risk. Incumbent banks are at risk of losing billions of dollars in retail revenues in the next three to five years as regulators and new digital competitors help consumers avoid the fees resulting from poor financial habits and decisions. 5% Only 43% adults worldwide need financial advice but are underserved 1.7bn customers trust their bank with their long-term financial well-being 1 in 2 Banks need to proactively cannibalize this revenue of consumers who experienced a major life event, with financial consequences, turned to their bank for help Only 14% Fewer than Purpose-driven banking aimed at restoring customers’ trust and helping them better manage their finances will establish the bank as a trusted advisor and position it strongly for future growth. To take this to the next step, read the report or contact the authors: Alan McIntyre Senior Managing Director – Banking [email protected] Julian Skan Senior Managing Director – Banking, Europe [email protected]

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Page 1: win-win banking relationships?...Accenture Subject Infographic detailing why banks should find ways to connect with customers that go beyond efficient-but-soulless digital transactions

PURPOSE-DRIVEN BANKINGCan trust create win-win banking relationships?WINNING IN THE DIGITAL ECONOMY SERIES

ABOUT THE RESEARCHAccenture surveyed 15,000 consumers and analyzed retail banks’ revenue in 12 countries.

Copyright © 2020 Accenture. All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. This document is produced by consultants at Accenture as general guidance. It is not intended to provide specific advice on your circumstances. If you require advice or further details on any matters referred to, please contact your Accenture representative.

Our new research and analysis show thatbanks that adopt a set of strategic actions designed to redefine their purpose, rebuild customer trust, and establish a foundation for new advisory propositions, can increase their revenue by 9%.

Helping customers manage their money better will reduce revenue but earn trust. This will benefit both parties: sound advice increases customer wealth, which trusted banks can help them manage.

Banks with high levels of customer trust enjoy faster revenue growth than their peers:

An average of 8.4% vs 6.2%

Steps to purpose-driven bankingA set of specific strategic measures can help banks build trust and grow:

PILLAR 1Immediate changes to increase e iciency and gain a better understanding of how to meet customers’ needs, thereby protecting and growing market share.

PILLAR 2A steady shift to expand the scope of financial advice, addressing consumers’ unmet needs and creating new revenue streams.

Trust in banks has decreased over the years

While consumers trust banks to protect their data and process their transactions, they are much less confident about banks looking after their best interests.

trust their bank to look after their long-term financial well-being

of banks’ revenue is at risk.Incumbent banks are at risk of losing billions of dollars in retail revenues in the next three to five years as regulators and new digital competitors help consumers avoid the fees resulting from poor financial habits and decisions.

5% Only 43%

adults worldwide need financial advice but are underserved

1.7bn

customers trust their bank with their long-term financial well-being

1 in 2

Banks need to proactively cannibalize this revenue

of consumers who experienced a major life event, with financial consequences, turned to their bank for help

Only 14%

Fewer than

Purpose-driven banking aimed at restoring customers’ trust and helping them better manage their finances will establish the bank as a trusted advisor and position it strongly for future growth. To take this to the next step, read the report or contact the authors:

Alan McIntyreSenior Managing Director – [email protected]

Julian Skan Senior Managing Director – Banking, [email protected]