Poor services hinders digital banking growth: Study

Poor service quality in digital banking has proved to be a major roadblock in delivering consistent customer experience, a recent research by CEB TowerGroup has revealed.

Poor service quality in digital banking has proved to be a major roadblock in delivering consistent customer experience, a recent research by CEB TowerGroup has revealed.

Nearly two-thirds of retail banking executives accept that providing a consistent customer experience across all channels is a priority.

Despite this, banks failed to find a way to efficiently offer a positive customer experience through digital channels as they do with personal channels, the study says.

Digital banking future in the US is promising as majority of retail banking customers prefer to carry out financial transactions through digital channels, including online and mobile, with nearly 70% of customers in the future predicted to continue to access the bank’s services through non-personal channels.

Due to poor digital service and problem resolution, customers still prefer in-person channels for purchasing new products and services.

CEB TowerGroup Research Director Nicole Sturgill was quoted by thefinancialbrand.com as saying, "Digital preference customers tend to have a more difficult time getting their issues resolved."

"One of the reasons customer transition to exclusively digital banking has lagged is because multichannel customers, especially those who lean towards in-person banking, experience the best service," Sturgill added.

The CEB TowerGroup research further underlines that banks did not pay more attention to resolve digital channel service and product related problems.

Even when issues were resolved, digital customers were less likely to feel that the bank communicated appropriately while the issue was being resolved, the study said.