BAIN REPORT Evolving The Customer Experience in Banking PDF
BAIN REPORT Evolving The Customer Experience in Banking PDF
BAIN REPORT Evolving The Customer Experience in Banking PDF
IN BANKING
“Alexa, move my bank accounts to ...”
Acknowledgments
This report was prepared by Gerard du Toit and Maureen Burns, partners in Bain’s Financial Services practice,
and a team led by Christy de Gooyer, a practice area director, and David Phillips, a consultant. Team members are
Madhav Jalan, Lakshay Kataria, Sidhant Law, Akash Malhotra, Jocelyne Moyer, Pranav Singh and Lavanya Srivastava.
The authors thank Bain partners in each of the countries covered in the report for their valuable input and
John Campbell for his editorial support.
Research Now is a global leader in digital research data for better insights and business decisions. Founded in 1999,
the company was a pioneer in originating online data sampling. The company provides research data solutions
for its 3,700 market research, consulting, media and corporate clients through access to more than 11 million
deeply profiled business professionals and consumers. Research Now currently operates in more than 40 countries
around the globe, with locations in the Americas, Europe, the Middle East and Asia-Pacific. For more information,
please go to www.researchnow.com.
Net Promoter ®, Net Promoter System ®, Net Promoter Score ® and NPS ® are registered trademarks of
Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.
Contents
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Evolving the Customer Experience in Banking | Bain & Company, Inc.
Page ii
Evolving the Customer Experience in Banking | Bain & Company, Inc.
Amazon’s acquisition of Whole Foods is an audacious plunge into grocery in the US. More quietly, the company
has also been moving into financial products, including Amazon Cash, which gives customers the ability to deposit
cash directly to their Amazon accounts from more than 10,000 retail locations throughout the US; and lending
more than $1 billion in the past year to small merchants selling through its online platform.
We already see the dynamic of technology firms moving into banking in Asia. In China, e-commerce giant Alibaba
has amassed the world’s largest money-market fund, issued $96 billion of loans in five years and grown Ant
Financial to a market capitalization roughly equivalent to the ninth-largest bank in the US. Alibaba also started
online bank MYbank, which approves loans instantly, using automated processes based on consumers’ financial
history with Alibaba. Japan’s main e-commerce giant, Rakuten, operates the country’s largest Internet bank and
third-largest credit card company by transaction value. Financial services now account for nearly 40% of
Rakuten’s revenue.
As these examples illustrate, it turns out that retail banking is being upended not by nimble fintech start-ups, but by
established tech firms. Many of the tech giants possess the ingredients of success: digital prowess, large customer
bases, organizations well versed in improving the customer experience, and ample leeway to extend their
corporate brands into banking.
Should banks worry? They do appear to be vulnerable to losing the special status they once enjoyed. Banks have
a strong reservoir of trust, to be sure. But consider that US and UK consumers ranked PayPal and Amazon
nearly as high as banks for trust with their money, in Bain & Company’s new survey of 133,171 banking customers
in 22 countries.
Many consumers are open to buying financial products from established tech firms (see Figure 1). The greatest
latent demand exists in countries where the bank branch experience is more time-consuming and cumbersome,
such as India and Mexico; there, 91% and 81% of respondents, respectively, expressed a willingness to run their
finances through major tech firms. By contrast, where banks have taken some of the pain out of banking by
digitalizing most routine transactions, as in the Netherlands, they have inoculated themselves to some extent
against the threat.
Demand for alternatives to traditional banks will only grow, as younger respondents in our survey showed the
greatest willingness to try these offerings. Moreover, more than one-quarter of US respondents would consider
using voice-controlled assistants for their everyday banking, and Amazon currently dominates the voice-enabled
speaker market with its Alexa assistant on the Echo device. Given that Amazon, Alibaba and others already sell
payment services, credit cards and loans, it’s plausible that they will offer a suite of retail banking services in the
near future.
Banks have a stiff challenge with meeting customer expectations for digital tools. Consumers young and old
prefer using websites and mobile applications for their routine banking transactions, which tend to be the most
frequent interactions. In the UK, for example, consumers give an average Net Promoter Score® (a key metric of
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Evolving the Customer Experience in Banking | Bain & Company, Inc.
Figure 1
By age, Americans willing to buy financial Which company would you trust most with your money?
products from tech companies “ ”
More trust Primary bank 1.7
73%
Banks in general 3.3
61%
PayPal 4.0
Apple 5.1
Google 5.4
Microsoft 5.5
Facebook 7.4
Less trust Snapchat 8.3
18−34 35−54 55 or older Average ranking by US consumers
loyalty) of 35 to their routine transactions done digitally, higher than the 20 points for transactions done through
employees at the branch or call center. People get annoyed when they’re forced by bank policies and processes to
use additional channels for everyday banking business.
Refining the website and mobile app to be convenient, multifunctional and easy to use with just a few taps or
strokes will be critical to earning customers’ advocacy and loyalty. Yet on these basic characteristics, banks’ mobile
apps and websites fall short in the view of many respondents. In the UK, only 45% of respondents said their
primary bank’s website lets them do everything they need, or is easy to use (see Figure 2).
Beyond the basics, banks have barely touched some technologies that have reached a tipping point in consumer
markets. A large group of respondents said they use voice assistants such as Siri, Alexa or Google Assistant on
their smartphones (one-quarter of all US respondents, for example, and an even higher share among young
adults) or Alexa or Google Home at home (almost one-fifth of US respondents).
Just as intriguing is the 5% to 6% share of respondents in Australia, the UK and the US already using voice
assistants for banking; between one-fifth and one-quarter are open to trying the technology for their banking in
the future. A few banks have made progress in this regard, including Santander in the UK and Capital One in the
US. Last year, Capital One launched functions using Alexa skills, which employ a chatbot that works with Alexa.
These chatbots have some constraints, including the need for explicit commands, such as “What’s my payoff
quote?” for an auto loan. But USAA recently introduced an Alexa offering that lets members speak conversationally.
Banks that master the digital basics will be able to further secure customers’ loyalty by quickly putting the new
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Evolving the Customer Experience in Banking | Bain & Company, Inc.
technologies to practical use in test-and-learn prototypes that can be improved in a few iterations and then
broadly rolled out. And banks should be sure to automate back-end processes behind the new technologies to
avoid adding complexity along with the new channels.
Beyond the loyalty benefits, there are also compelling cost reasons to accelerate development of digital channels
that can handle more routine transactions and move them out of expensive branches and call centers. Each
mobile interaction incurs a variable cost that’s a tiny fraction of the cost for a teller or call-agent interaction. As
interactions migrate to mobile, a bank needs fewer tellers and call-center agents. The five largest banks in Mexico,
for instance, could eliminate $500 million in costs if they reached the level of mobile and online banking usage
of their counterparts in the Netherlands. Dutch banks began to reconfigure their branch networks a decade ago,
as the country’s strong broadband infrastructure and shift to cashless commerce allowed consumers to adopt
mobile banking early on.
Banks in other countries have equally large opportunities to take out costs. In the US, for example, 40% of
respondents went to a branch teller at least once in the previous quarter to make a deposit, compared with 21%
using digital channels and 18% using automated teller machines (ATMs).
The lower costs and high customer advocacy for digital channels serving routine interactions create a virtuous
circle (see Figure 3). The more transactions that digital channels accommodate seamlessly, the more customers
will use them instead of the call center or branch. And the reduction in “bad” call and branch volumes allows banks
to reinvest more to further improve digital channels, while reserving their employees for the knottiest problems.
Figure 2
Many customers feel banks’ current digital channels fall short, even as
new technologies take hold
UK respondents who agree US respondents who agree
Lets me do all I need Is easy to use Use voice assistants Use voice assistants
on phone at home
only only
45%
of online customers and
44%
of online customers and
already already
25%
of mobile customers
34%
of mobile customers
27%
of customers
18%
of customers
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Evolving the Customer Experience in Banking | Bain & Company, Inc.
Figure 3
Note: Net Promoter Score® is a registered trademark of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.
Source: Bain/Research Now Customer Loyalty in Retail Banking Survey, 2017
Citibanamex has taken on the “bad” volume challenge, which is particularly vexing in Mexico. The bank reckoned
that its customers and employees were spending 5 billion minutes per year at branches, with the vast bulk of that
time on the customers’ end. This waste took a toll on the bank’s cost-to-income ratio and ultimately on profits, as
well as on both customer and employee advocacy. Through a combination of initiatives ranging from simplifying
online forms and printing formats, to migrating more transactions to ATMs, to reducing wait time at teller windows,
Citibanamex freed up 1 billion minutes, giving a major boost to customer satisfaction and employee advocacy.
Cost implications also show up in such nonroutine events as disputing fees. In the US, for instance, there’s a
significant gap between the leading and the lagging banks in the incidence of these dispute events. Laggards not
only suffer from having more detractors among customers, they also bear roughly twice the cost of resolving the
dispute as the leaders do. In some cases, this can exceed any differences in the revenues collected from the fees
themselves. It’s better to eliminate such events in the first place.
We have seen some banks handle these challenges by organizing in a new way, around how customers experience
the business. That’s a marked departure from the standard, internally oriented approach to organizing around
products and functions, such as the checking account or the risk-management function. As part of shifting to the
customer experience, a few pioneering banks have adopted as a key unit of management the “episode”—activities
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Evolving the Customer Experience in Banking | Bain & Company, Inc.
that customers perform when they have a task to complete or a need to fulfill (see Figure 4). Typical episodes
include “I want to pay a bill online,” or “I want to buy a home” or “I want to dispute a fee.”
Design and management of each episode occur through small, cross-functional teams that are responsible for
owning and improving an individual episode. Teams typically use Agile methods to arrive quickly at a minimum
viable product, gathering and baking feedback from customers into successive versions of the episode before
rolling it out broadly. One bank has managed to take Agile episode management to scale, with more than 250
active teams. The bank is realizing substantial gains as a result. For instance, one team generated an auto-finance
mobile prototype in one week, a project that previously would have taken at least six months.
Different episodes require a different blend of digital and human processes, tuned to the unique considerations
of each episode. High-stakes, emotional moments of truth, such as handling a complaint, demand outstanding
customer service, as our survey respondents strongly prefer working with employees to dispute a fee or resolve a
problem. Low-stakes, but frequent, episodes such as reviewing one’s account activity should be as fast and convenient
as possible through digital channels. Banks should work to reduce the frequency of bad episodes, and treat episodes
involving sales as an opportunity to reinforce the bank’s brand.
In fact, episodes that involve buying financial products represent huge untapped opportunities for banks, which
they can realize through more personalized selling.
Figure 4
Move and
Join and Pay for Own a Resolve
manage Borrow Invest
onboard money
things home an issue
Manage my profile
Open an account Get a credit card
and preferences
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Evolving the Customer Experience in Banking | Bain & Company, Inc.
Figure 5
In Australia, more than one-third Only one-quarter were actively Half would have purchased from
of defectors said they bought from a researching when they decided their primary bank if the bank had
competitor bank because they received to buy the product. made an offer.
an offer or saw an advertisement.
Hidden defection—purchasing an additional banking product from a competing bank—takes place everywhere,
totaling 25% to 51% of additional products, depending on the country. Credit cards, loans, insurance and investments
are the most purchased categories at competitors, whereas the primary bank tends to keep a higher share of low-
value deposit accounts.
To stem the tide of hidden defections, our analysis of the survey data shows that banks should consider more, and
more targeted, marketing and sales pitches. In the US, for instance, 42% of defectors said they bought from a
competitor bank because they received an offer or saw an advertisement. Only one-fifth were actively researching
when they decided to buy the product. Just as striking, more than half would have purchased from their primary
bank if the bank had made an offer (see Figure 5).
The lesson: Ask for the sale. Banks have copious data on their customers’ risk profile and stage of life, which
allows them to present the right offer at the right time and place—before competitors step in and poach a willing
customer. Since more consumers tend to purchase credit cards, investments and other secondary products more
frequently through digital channels than they do when buying primary products, it follows that banks could ramp
up their digital marketing efforts.
•••
Banks’ efforts to build out websites and mobile apps have made for an intense competitive game within the sector.
An entry by Amazon or other tech firms into banking would take the competition into a different league.
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Evolving the Customer Experience in Banking | Bain & Company, Inc.
Consumers’ expectations keep rising as people grow accustomed to simple, convenient digital channels in other
parts of their lives. If banks don’t reorient their approach and radically accelerate their rate of progress, loyalty will
suffer, and they will watch technology firms poach more business. Meanwhile, their economics will erode as too
many routine transactions continue to flow through expensive branch and call-center networks.
Bank employees, used judiciously, will also figure in this competitive battle, as long as they are deployed to
resolve complicated problems or serve high-value customers who merit personalized attention. Banks that go a
step further to mobilize small teams around individual customer episodes stand to steadily earn greater advocacy
and loyalty, the best defense against incursions by technology firms.
Page 7
1.
• Customers are surprisingly amenable to trying
financial products offered by technology firms,
especially large, established firms. While some
consumers express willingness to try such products
from start-ups, there’s a 10- to 40-percentage-
point gap across countries between large firms
and start-ups.
Consumers to
technology firms: • Younger customers show the greatest willingness
to try such offerings, but a large share of older
Bring on the customers in all countries also are comfortable
with the idea. Credit cards get the highest expres-
financial products sion of interest, followed by a basic account.
Figure 6
100%
80
60
40
20
0
India Brazil Mexico Hong Kong Singapore Spain US South Korea Australia Netherlands Switzerland
China Malaysia Chile Argentina Poland Japan Germany UK Canada Belgium France
Figure 7
100%
India
China
Argentina
Poland
60 Spain
Germany
UK Japan
US
South
Netherlands Korea Canada
40 Australia
France
Switzerland
Belgium
20
0 5 10 15 20 25%
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Evolving the Customer Experience in Banking | Bain & Company, Inc.
Figure 8
US China
100% 100% 90 88
80 73 80 74
60
61
60
40
42
40
20 20
0 0
18‒34 35‒54 55 or older 18‒34 35‒54 55 or older
Netherlands Mexico
100% 100%
87
80 80 79
60 57 60
61
40 40 40
25
20 20
0 0
18‒34 35‒54 55 or older 18‒34 35‒54 55 or older
Figure 9
100% 10
91 9.1
80 8
66
6.3
60 56 6
40 4
34 3.6
2.7
20 2
0 0
China Hong Kong South Korea Malaysia China Hong Kong South Korea Malaysia
Page 11
Evolving the Customer Experience in Banking | Bain & Company, Inc.
Figure 10
US UK
1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9
Figure 11
60%
52
40
32
30
21
20
0
Credit card Bank account Investment Mortgage or home loan
Page 12
Evolving the Customer Experience in Banking | Bain & Company, Inc.
Figure 12
15 Digital favored over human channels Human favored over digital channels
10
Human channel 0
–5
–10
–15
India China Spain Singapore Mexico Germany Brazil Australia US UK Netherlands Canada
Share of purchases 42% 50% 31% 37% 14% 49% 28% 47% 42% 63% 57% 35%
made digitally
Mobile Online
Notes: Countries ordered by weighted average digital-channel Net Promoter Score, relative to human channel; mobile refers to interactions on smartphones and tablets; online
refers to desktop and laptop computer interactions
Source: Bain/Research Now Customer Loyalty in Retail Banking Survey, 2017
Page 13
2.
• Banks have been trying to migrate transaction
volumes out of the branch and call center to
digital channels over the past five years, but the
results of such efforts have leveled off as banks
picked off the easiest targets. Banks in Hong
Kong, China and India have made the greatest
progress in reducing the number of interactions
Banks still lag in digital requiring employees.
basics, especially
• Yet banks in most countries still have a long way
with mobile to go in this migration, compared with “self-
serve” leaders in the Netherlands, Poland and
Australia. In the US, for example, 40% of respon-
dents went to the branch teller at least once in the
past quarter to make a deposit, compared with
21% using digital channels and 18% using ATMs.
Figure 13
Many banks have made progress in moving interactions out of the branch…
Average number of interactions per respondent conducted through human channels in the past quarter
India
Mexico
Brazil
China
Spain
Hong Kong
Malaysia
France
Belgium
US
South Korea
Canada
UK
Germany
Poland
Singapore
Australia
Japan
Netherlands
12 9 6 3 0
2014 2017
Note: 2013 data shown for the Netherlands, which was not surveyed in 2014
Source: Bain/Research Now Customer Loyalty in Retail Banking Survey, 2017
Figure 14
45
Heavy interaction Self-serve
40 Chile Poland
Netherlands
35 Belgium South Australia
Brazil Korea
France UK
India
30
Spain
Argentina
Interactions 25
conducted Mexico US Canada Germany
digitally 20
Hong Kong
China Switzerland Singapore
15 Malaysia
10 Japan
5
Branch and phone dependent Low interaction
0
9 8 7 6 5 4 3 2 1 0
Page 16
Evolving the Customer Experience in Banking | Bain & Company, Inc.
Figure 15
100%
81
80
Digital
63
60
53
ATM
40
20 Branch
0
US UK Australia
Figure 16
3.00
40 £3
35
30
20
20
10
0.15
0 0
Human Digital Human Digital
Source: Bain/Research Now Customer Loyalty in Retail Banking Survey, 2017; Bain analysis
Page 17
Evolving the Customer Experience in Banking | Bain & Company, Inc.
Figure 17
100% $3
85
2.50
80 77
2
Digital
60
40 ATM 1.10
1
20
Branch
0 0
Leader Laggard Leader Laggard
(Bank of America) (Bank of America)
Source: Bain/Research Now Customer Loyalty in Retail Banking Survey, 2017; Bain analysis
Figure 18
Mexico’s largest banks could eliminate more than $500 million in cost
from branches and call centers
Estimated total addressable labor cost base, $ millions
619
600
400
−257
200
90
−272
0
Total for top five Domestic benchmark International benchmark Full potential
Mexican banks (Chile) (Netherlands)
Sources: Bain/Research Now Customer Loyalty in Retail Banking Survey, 2107; SNL Financial; Bain analysis
Page 18
Evolving the Customer Experience in Banking | Bain & Company, Inc.
Figure 19
50 Change in average
interactions per respondent,
2013–17
40 Branch –1.2
Phone –0.7
ATM –2.6
30
Online –5.3
20
10
Mobile 7.8
0
2013 14 15 16 17
Notes: Mobile refers to interactions on smartphones and tablets; online refers to desktop and laptop computer interactions
Sources: Bain/Research Now Customer Loyalty in Retail Banking Surveys, 2013–17
Page 19
3.
• Consumers used to convenient, high-functioning
digital tools in other areas of their lives, such as
retail purchases, want banks to deliver at an
equally high level—yet are often disappointed.
Fewer than half of UK respondents said their
bank’s website lets them do everything they
need, or is easy to use. The share is even lower
AI-based consumer for banks’ mobile apps.
technologies go
• Turning to newer technologies, a large share of
mainstream customers use voice assistants on their smart-
phones (one-quarter of US respondents) or at
home (almost one-fifth). Young adults are the
most active users of such voice assistants as
Amazon Echo/Alexa and Google Home.
Figure 20
50%
47 50% 49
46
43 44 42 43
40 40
36 35
30 30
25
24
20 20
16
10 10
0 0
18–35 35–54 55 or older 18–35 35–54 55 or older
Mobile Online
Notes: Mobile refers to interactions on smartphones and tablets; online refers to desktop and laptop computer interactions
Source: Bain/Research Now Customer Loyalty in Retail Banking Survey, 2017
Figure 21
“Do you regularly use a voice assistant on your “Do you have a voice assistant device at home
smartphone (e.g., Siri, Google Assistant, Bixby)?” (e.g., Amazon Echo/Alexa, Google Home)?”
40% 40%
37
30 30
26 Average 26
20 20 19 Average
17
12
10 10
0 0
18–34 35–54 55 or older 18–34 35–54 55 or older
Page 22
Evolving the Customer Experience in Banking | Bain & Company, Inc.
Figure 22
The share of customers using voice assistants for banking could grow sharply
Current and future use of voice assistants for banking
US UK Australia
22
21
20 20 20
10 10 10
6 6
5
0 0 0
Currently using Open to using Currently using Open to using Currently using Open to using
in the future in the future in the future
Figure 23
0.4
0.3
0.2
0.1
0
2013 14 15 16 17
Page 23
4.
• Consumers encounter many episodes during their
banking, from routine bill payment to resolving a
stolen credit card, and different types of episodes
require different management strategies. Fee
disputes don’t occur often, but have high stakes
and thus a strong propensity to create detractors
among consumers. Bill payment and money with-
Different strokes for drawal, by contrast, might be less emotional, but
different customer occur frequently. Banks can earn greater loyalty
by reducing the volumes of unnecessary transac-
episodes tions, making routine interactions easy and con-
venient, and improving the service experience of
high-stakes episodes.
Figure 24
Apply for
Address mortgage
Resolve
declined
complaint
purchase
Potential to Check account activity Discuss Refinance/
annoy Deposit money unrecognized renew
Replace lost/
transactions mortgage
stolen card
Resolve login
Open checking
problem This bubble
Withdraw Transfer account
Pay bill size equals 50%
money money
Register for of respondents
Low online account completing the
Routine Create promoters episode
Low High
Potential to delight
Figure 25
40
20
–20
Page 26
Evolving the Customer Experience in Banking | Bain & Company, Inc.
Figure 26
80%
60
40
20
0
Under 25 55 or Under 25 55 or Under 25 55 or Under 25 55 or
older older older older
Note: “Withdraw money” was excluded from routine episodes because digital was not an option
Source: Bain/Research Now Customer Loyalty in Retail Banking Survey, 2017
Figure 27
100%
80
Started digital, finished human
60
40
Succeeded on self-serve
20
0
16,000 routine episodes 8,000 emotive episodes
Note: Self-serve includes digital and ATM; “withdraw money” excluded because the switching question was not asked for this episode
Source: Bain/Research Now Customer Loyalty in Retail Banking Survey, 2017
Page 27
Evolving the Customer Experience in Banking | Bain & Company, Inc.
Figure 28
100% 60 –14
50 –36
80
80
Started digital, 45
switched to
human 40
60 36
40 Succeeded
Succeeded on self-serve
20
Switched
to human
20 9
0 0
Mobile Online
Starting channel
Notes: Self-serve includes digital and ATM; “withdraw money” excluded as the switching question was not asked for this episode; mobile refers to interactions on smartphones
and tablets; online refers to desktop and laptop computer interactions
Source: Bain/Research Now Customer Loyalty in Retail Banking Survey, 2017
Figure 29
50 13
50% 40 38
40 13 –13
Switched to human 30
26
25
30
20 Switched
to human
20
13
Succeeded
Succeeded on self-serve 10
10
0 0
Mobile Online
Starting channel
Notes: Self-serve includes digital and ATM; mobile refers to interactions on smartphones and tablets; online refers to desktop and laptop computer interactions
Source: Bain/Research Now Customer Loyalty in Retail Banking Survey, 2017
Page 28
Evolving the Customer Experience in Banking | Bain & Company, Inc.
Figure 30
Disputes as a share of total episodes Percentage of dispute episodes not resolved Percentage of dispute episodes resolved
in first contact using digital
8% 30% 30% 29
7 26
6
5 20 20
10 10
2
7
4
0 0 0
Top three banks Bottom three banks Top three banks Bottom three banks Top three banks Bottom three banks
Figure 31
100
100
80
−22
60
−14
44
40 −20
20
0
Bottom performer Reduce dispute Improve first-contact Migrate to digital Top performer
volumes resolution
Sources: Bain/Research Now Customer Loyalty in Retail Banking Survey, 2017; Bain analysis
Page 29
5.
• Banks continue to lose many product purchases
to competitors. Across countries, 25% to 51%
of customers (in Brazil and the UK, respectively)
who bought a banking product in the past year
turned to a bank other than their primary one.
Figure 32
80
60
40
20
0
Brazil Argentina China Mexico Netherlands South Korea Germany Malaysia US
France India Australia Spain Canada Japan Hong Kong Singapore UK
Figure 33
UK
Netherlands
Germany
Australia
US
China
France
Canada
India
Japan
Singapore
South Korea
Spain
Hong Kong
Brazil
Argentina
Malaysia
Mexico
0 20 40 60 80%
Page 32
Evolving the Customer Experience in Banking | Bain & Company, Inc.
Figure 34
Credit cards
Deposits
Investments
Loans
0 20 40 60 80%
Figure 35
50%
50
40
30
25
21
20
10
0
US Australia UK
Page 33
Evolving the Customer Experience in Banking | Bain & Company, Inc.
Figure 36
50%
42
40
36
Advertisement from
competing bank 31
30
20
0
US Australia UK
Figure 37
Most defectors would be willing to buy more from their primary bank, if it
made a personalized offer
“If your primary bank had proactively reached out to you with a personalized offer for the identical product that you purchased at the competitor,
would you have purchased it at the primary bank instead?”
100%
No, I wouldn't have
purchased from my
primary bank
80
I don't know
60
40
0
US Australia UK
Page 34
Evolving the Customer Experience in Banking | Bain & Company, Inc.
Page 35
6.
• Direct banks continue to lead in Net Promoter
Scores relative to national, regional or smaller
competitors in many countries.
Figure 38
In the Americas, there is a large gap between loyalty leaders and laggards
Primary banks’ Net Promoter Scores relative to loyalty leader, indexed to zero, 2017
Banco Macro,
Argentina
Banco Galicia
Chile BCI
Scotiabank, Santander,
Mexico
BBVA Bancomer
Huntington National Bank
US–Midwest USAA
TD Bank
US–Northeast USAA
USAA,
US–South
Frost Bank
Umpqua Bank,
US–West USAA
Union Bank
–100 –80 –60 –40 –20 0
Figure 39
Bendigo Bank
Australia ING Direct
India Citibank
Malaysia Maybank
Singapore Citibank
Shinhan Bank,
South Korea
Kookmin Bank
–100 –80 –60 –40 –20 0
Page 38
Evolving the Customer Experience in Banking | Bain & Company, Inc.
Figure 40
Credit Mutuel
France ING Direct, Boursorama
Sparda-Bank
Germany DKB, ING DiBa
Bank Millennium,
Poland
ING Bank
BBVA,
Spain ING Direct
Bankinter
Switzerland Raiffeisen
Nationwide
UK First Direct
Figure 41
No. 3 −10 −7 −7 −8 −6 −2
Page 39
Evolving the Customer Experience in Banking | Bain & Company, Inc.
Appendix: Methodology
Bain & Company partnered with Research Now, an online global market-research organization, to survey
consumer panels in Argentina, Australia, Belgium, Brazil, Canada, Chile, China, France, Germany, Hong Kong,
India, Japan, Malaysia, Mexico, the Netherlands, Poland, Singapore, South Korea, Spain, Switzerland, the UK
and the US. The survey’s purpose was to gauge customers’ loyalty to their principal bank and the underlying
reasons customers hold their views. Conducted from July to August 2017, the survey polled 133,171 respondent
consumers of national branch network banks, regional banks, private banks, direct banks, community banks and
credit unions in these countries.
For most individual bank analysis, we included only banks for which we received at least 200 valid responses. In
Argentina, Chile, India, Malaysia and Singapore, we included banks with at least 100 responses. In many
instances, sample sizes exceeded these thresholds.
Survey questions
Respondents were first asked to identify their primary bank, then were asked the following questions to assess
their loyalty to that institution:
• On a scale of zero to 10, where zero represents “not at all likely” and 10 represents “extremely likely,” how
likely are you to recommend your primary bank to a friend or relative?
• Tell us why you gave your primary bank the score you did.
Ratings of zero to 6 signify detractors, 7 and 8 signify passives, and 9 and 10 signify promoters. Net Promoter
Scores are calculated by subtracting the percentage of detractors from the percentage of promoters. A positive
score indicates advocacy and support, while a negative score shows the opposite.
We asked what major products respondents hold with their primary bank and with other banks, and which of
these products were purchased in the past year. We also asked respondents what their most recent purchase had
been, and the bank and channels they used to make this purchase. Further, we asked how often they interacted
through various channels to do their banking in the past three months. We also asked questions about respon-
dents’ attitudes toward using technology companies for financial products. The remaining questions elicited
demographic profile information: household income, investable assets and region of residence.
For statistical significance, the results of our data analysis are robust for the measurement of bank Net Promoter
Scores by country or US region. Where our threshold for the bank’s inclusion in the Net Promoter Score rankings
is a sample size of 200, the score measured for each bank is statistically significant to an 80% confidence level,
with a two-tailed test of the confidence interval ranging from plus or minus 2.6% for a sample size of 979, to plus
or minus 7.4% for a sample size of 200. In countries where sample sizes were smaller, confidence intervals are
wider, with a maximum of plus or minus 10%.
Page 40
Key contacts in Bain’s Global Financial Services practice
Global
Edmund Lin in Singapore ([email protected])
Americas
Mike Baxter in New York ([email protected])
Maureen Burns in Boston ([email protected])
Gerard du Toit in Boston ([email protected])
Asia-Pacific
Peter Stumbles in Sydney ([email protected])
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