The revenue opportunity for banks
The report notes that consumers' relationships with their banks are becoming increasingly transactional and impersonal. Banks can reverse this by investing in a digital core steeped in artificial intelligence, cloud, and data and analytics technologies to better identify customers' financial intents, have more personal conversations that flow seamlessly across physical and digital channels, and deliver relevant products and services, including non-banking offerings.
Accenture estimates that by taking these steps to reestablish personal relationships, banks could increase revenues from primary customers by upwards of 20%.
Consumers - across all generations - still value bank branches
The desire to have a conversation with their bank is evident based on consumers' surprising affinity for bank branches. While many banks continue to reduce their overall branch footprints, more than eight in ten (82%) consumers in Thailand — across all age groups — like seeing bank branches in their neighborhood, as they portray stability and availability. This was higher than the global average (66% of consumers). In addition, 80% of Thai consumers turn to branches to solve specific and complicated problems.
As interest rates rise and economic uncertainty persists — 71% of respondents in Thailand said that rising costs of living had significantly affected their ability to repay loans in the past 12 months — consumers are more likely to want to connect with their bank for help. The report suggests that branches be repositioned as advisory centers, with employees leveraging technology to deliver a more personalized experience.
Other key survey findings from the report include:
- Approximately one-third of consumers said they would purchase big-ticket non-financial products — such as properties (30%), cars (30%) and travel (21%) — from or through a bank.
- 78% said the majority of their mobile banking logins are simply to check account balances.
Wichaya Chao, Financial Services lead, Thailand, Accenture, said "With an increasing affluent and digital savvy population, Thais are expecting intuitive, effortless, and engaging experiences with their banks. Banks that come out as leaders will be those that put the customer at the heart of their innovation. These banks draw on data-driven customer insights to deliver integrated propositions that address core customer needs, and in turn, capture customer mindshare and trust. With digital banking licenses expected to be announced in 2024, banks that prioritize meeting Thais' needs and delivering an exceptional digital experience will be the ones to succeed in the market."
About the research
Accenture surveyed 49,000 respondents across 33 countries: Australia, Belgium, Brazil, Canada, Chile, China, Colombia, Denmark, Finland, France, Germany, Greece, Indonesia, Ireland, Israel, India, Italy, Japan, Malaysia, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Singapore, South Africa, Spain, Sweden, Switzerland, Thailand, the U.K. and the U.S. Respondents were required to have a bank account and covered multiple generations and income levels. The survey was conducted online during July and August 2022. The revenue estimates were based on an analysis of survey and financial data across nine markets (Australia, Brazil, Canada, Italy, the Netherlands, Singapore, Spain, the U.S. and the U.K.).
Source: ABM Connect