Research firm Celent, on behalf of IT solutions company SunGard,
has developed a Bank Readiness Index to enable banks in the Middle
East and South East Asia to benchmark their ability to meet
customer expectations. RBI takes a look
at how the index aggregates banks’ capabilities across different
dimensions
Go deeper with GlobalData
Research firm Celent
has developed a Bank Readiness Index (BRI) on behalf of US-based IT
solutions company SunGard to enable banks to benchmark their
ability to cater to customer expectations. It aggregates banks’
capabilities across several dimensions and normalises those
capabilities based on consumer preferences and behaviour, such as
social media usage and smartphone ownership.
Celent calculated the BRI based on a weighting
of 17 variables across four areas: multichannel, mobility, social
media and customer metrics. It revealed that banks in some of the
world’s fastest-growing emerging markets are struggling to keep up
with changing customer expectations – particularly in
multi-channel arenas such as social media and mobility.
The survey involved more than 1,000 consumers
and 00 banks across Indonesia, Malaysia, Philippines, Thailand,
Kuwait, Qatar, Saudi Arabia and UAE.
Dean Young, vice-president of product
management for SunGard’s banking business, said: “Increasingly,
online channels present consumers with more freedom to shop
around.
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By GlobalDataBanks need to understand their customers’
needs to create a better user experience, which in turn will help
to capitalise on cross-sell opportunities, build customer loyalty
and improve profitability. The SunGard BRI will help banks to gain
a true picture of just how ready and capable they are.”
The BRI reflects an urgent need for
technology investments. Other findings reveal that banks lag
behind customer demand for a multichannel experience. While 88% of
the banks surveyed offer online bill payment and offer 69% P2P
payment capability, just 39% offer personalised landing pages or
the ability for users to tailor content. Only 31% integrate with
shopping or discount programmes and even fewer (27%) offer personal
financial management capability online.
With regard to social media, the research
revealed that though consumers are talking on Facebook, banks are
not “listening”: 90% of consumers use Facebook at least weekly,
with about half confirming they would use it to share banking
experiences. 
While 76% of banks agreed that innovation in
mobility and digital technology is a key opportunity to personalise
offerings, only 21% have a fully developed social media strategy
and just 13% believe they are using social media to its fullest
potential. Only 38% monitor social media.
Barely half of consumers perceive their bank
to be a technology innovator and just 28% of banks have a 360
degree customer view across products and delivery channels.
Customer analytics and relationship pricing are similarly
lacking.
Bob Meara, a senior analyst at Celent, says,
“While consumer trust is evident, banks need to capitalise on this
o to get a better handle on changing habits and engagement
strategies to maintain customer loyalty.”
