5 Stats That Highlight the Importance of a Reliable Online Banking User Experience

online banking user experience

Your users’ expectations of your digital capabilities are growing bigger, faster and stronger every day. According to consumer research by Salesforce.com, 80% of consumers say the digital experience your institution provides is just as important as its products or services. It’s also multi-generational — demand is not exclusive to the younger generations. A Zelle study showed that since the start of the pandemic, 82% of seniors are banking online more often, and 55% of them are using mobile banking more often. 

Catering to your online banking user experience has never been more critical. Users want it to be easy and reliable, and in exchange, they want to reward you with their ongoing loyalty. On the contrary, a poor online banking experience can take you two steps backward. Here are a few statistics that reinforce the importance of delivering a reliable experience.

88% of online users say they wouldn’t return to a website after having a bad user experience.

An Amazon AWS report discovered that 88% of online users wouldn’t return to a site after a bad experience. “Design-driven businesses have outperformed the S&P by a whopping 228% over the past 10 years. The bottom line, good design equals good business,” said Joanna Ngai, UX designer for Microsoft. The report goes on to say that a staggering $1.42 trillion is lost because of bad UX in the greater e-commerce market. 

The concept applies to banks and credit unions. If your users are struggling and frustrated with your digital experience, many capable fintech companies are ready to woo them. Good UX matters, and it’s why Megatech companies like Apple, Google and Amazon invest so heavily in their user experience teams. 

63% of leaders at mid-market banks and credit unions feel that modernization is imperative.

According to research from Capgemini and Efma, banks and credit unions often chalk fintech startups’ success to marketing. Specifically, their speed-to-market, social integration and quick turnaround. However, many end users choose fintech alternatives because of their digital banking user experience: faster service, more features and ease of use. And a study by the Everest Group reported that your end users expect the same level of personalization that mega tech and fintech companies provide, be it mobile or desktop or on an app. 

Some smaller banks are catching on. According to the Everest Group report, almost 63% of leaders at mid-market banks and credit unions agree that core banking modernization is imperative. And because enhancing the customer experience is the highest priority for the majority of mid-market leaders, banks and credit unions that fail to deliver similar or better experiences will likely lose market share to those that are prioritizing technology.

71% of banking users don’t receive time-targeted product recommendations.

One size fits all marketing is dead. People want personalized experiences, from their Netflix account to their banking platform. But roughly 71% of banking users don’t receive time-targeted product recommendations from their primary bank, and 50% of consumers face a gap in seamless and integrated banking experiences. This is according to a Capgemini Financial Services Analysis. Your users are yearning to be treated with hyper-personalized offerings, and it’s a missed opportunity if you’re not delivering them. The financial institutions that do so will earn their loyalty, reduced attrition and increased lifetime value.

44% of online bankers users experience friction, and 70% of abandoned journeys are due to friction.

Banks and credit unions are struggling to deliver a frictionless customer experience. According to the joint Capgemini Efma study, 44% of consumers face medium to high friction when engaging with their digital banking platform. And a recent survey by Fractal of over 3 million banking customer interactions found that friction was the cause for 70% of abandoned digital journeys. Friction can be small misplaced call-to-actions or anything that adds unnecessary complexity to your user’s experience. More end users are expecting innovative integrations between your banking products or services with their customer journey. If not, they will seek frictionless UX elsewhere.

One mega-bank found that 50% of its online bankers are over 50.

Previous decades of your success are important, especially to older generations. But it can easily be trumped when someone experiences frustration with your platform. More and more, all ages are banking digitally, and they care about their actual, present user experience with your financial organization. In a study of its end users, the megabank Chase said that digital banking adoption wasn’t relegated just to younger users but also those older than age 50, who now account for half of new digitally active end users at Chase Bank. 

Additionally, mobile deposits now represent more than 40% of all their check deposits. They believe that personalization, automation and real-time payments are the key digital banking trends that will be more prevalent in 2021 and beyond. Now is an excellent time to evaluate how your platform delivers on these factors and whether that experience is easy to navigate. Lumin can help

Customer experience leaders renovate, not just decorate. Forrester predicts that a quarter of brands will achieve statistically significant advances in customer experience quality in 2021, and your bank can be one of them. From where we sit, it’s about more than simplified account openings — it’s an enhanced user experience across the entire customer journey.

Marty Aquino has been a passionate writer on venture capital, technology, forecasting, risk mitigation, wealth and entrepreneurial topics since 2009. He is the founder of Carbonwolf Energy, a venture-capital firm specializing in world-changing and status-quo-defying technologies and people. 

Sources
Salesforce.com – New research: 15,600 customers want trust, empathy and reimagined digital experiences
McKinsey – COVID-19 digital transformation & technology 
Amazon AWS – The_Trillion_Dollar_UX_Problem
UX Design – Three Lessons for Design-Driven Success
World Retail Banking Report – Brochure Potrait 
CapGemini – BaaS platform model is the way forward
Chase J.P. Morgan – 2021 Digital Banking Trends
Forrester – 2021 Predictions
Fractal – Removing friction from your digital banking experience