71% of Taiwanese prefer digital communications with the bank when they are tough

Taipei, Taiwan, March 22, 2021 / PRNewswire /In-person branch banking appeal fades quickly after pandemic

Strong points:

  • 71% of Taiwanese consumers prefer to use digital channels to interact with their bank in times of financial difficulty.
  • 31 percent of Taiwanese prefer to communicate via their mobile banking application; 22 percent preferred to use internet banking.
  • 24% of Taiwanese prefer to deal with one main bank with another 40 percent saying they were “mostly okay” that it was their preference.

A recent survey by global analytics software company FICO found that 71% of Taiwanese consumers prefer to use digital channels to interact with their bank when experiencing financial difficulties. The survey conducted in december 2020, at the height of the global COVID-19 pandemic, demonstrates the willingness of consumers to adopt digital banking and the opportunities that exist for banks to further develop their offer.

FICO company logo. (PRNewsFoto / FICO)

The high level of smartphone penetration in Taiwan meant that 31% of Taiwanese preferred to communicate about issues using their mobile banking app; 22 percent wanted to use online banking services; 11% preferred to use telephone banking services; 5 percent communicated by email; and 2 percent wanted to use virtual conferencing technology. “The risk of infection and social distancing requirements made branch visits less attractive last year, accelerating the shift to digital banking channels globally,” said Ashish sharma, responsible for the risk life cycle and decision management for FICO in Asia Pacific. “Being able to deliver and manage multiple channels based on customer preferences and deliver a seamless and engaging experience is a challenge that’s here to stay. decision making is the key to digital banking success. “Customer attitudes towards new banking technologies, such as the automation of debt collection, can generate interesting preferences and behaviors.” It should be noted that during times of difficulty, some customers prefer to deal with the issue using intelligent and automated online services, such as our FICO® Customer Communication Services (CCS) in order to avoid the embarrassment of talking to a customer. agent of a problem If customers prefer digital channels during tough times, their toughest times, it seems to me that we can expect bank branches to continue their decline, ”Sharma explained.

Preferred points of contact with banking clients throughout the Asia-Pacific region – December 2020

Importance of maintaining banking relationships

Banks still have a data and relationship advantage over fintech challengers. The investigation revealed that through Asia Pacific, one in three consumers preferred that all their banking needs be taken care of by a single bank. In Taiwan this figure was slightly lower than 24%, while an additional 40% said they “somewhat agree” that they would like to deal with only one main bank. “Managing multiple bank accounts or financial products with different lenders can often be a complex, time-consuming and expensive process for the average bank customer,” said Sharma. “Digital banking users today are looking for better control and better visibility of their financial situation. When asked about their willingness to try a fintech or a challenger bank, 22% of Taiwanese said they were inclined to consider a competitor with an additional 47% relatively open to the idea. “To consolidate and strengthen the core banking engagement, lenders must offer digital banking capabilities that compete with the challengers to ensure the strength and sustainability of long-term customer relationships,” added Sharma.

Most attractive reasons for changing banks

When asked why they would switch to a competitor, 42% of Taiwanese consumers said their main reason would be to improve the personalization and controls of their digital banking service. The survey defined this as the ability to view transaction history, update personal information, reset passwords, and other such functions. Interestingly, personalization and control was also the main reason to switch between Asia Pacific (31%). Other major switching drivers across Asia Pacific were; the ability to control a payment card (set transaction limits, lock / unlock); the possibility of setting up recurring payments; and enhanced security features such as biometrics and two-factor authentication.

By PR Newswire

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