Use of smartphone for main banking interactions across GCC is low, inspite of the high number of customers using smartphone, reveals a report by EY.
The EY GCC Digital Banking Report 2015 cites that only 14% of customers banking interactions are made on smartphone, though 98% of the surveyed banking customers possess smartphones.
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EY MENA financial services technology and transformation advisory leader Paul Sommerin remarked: "Mobile banking has not fully taken off in the GCC. A large number of transactions are still made on home computers or ATMs, or through traditional channels involving human interaction, such as branches or call centers. Only a limited number of banking transactions are mobile.
"This is very surprising given the extremely high number of banking customers that use smartphones. Outside of the region, digital-only banks, which don’t have a branch network, have been rising in popularity due to their agility and lower cost base."
The survey further pointed out that 78% of GCC customers are likely to switch bank for a better digital experience, while up to 64% would feel comfortable switching to a digital-first bank.
EY MENA financial services advisory leader Robert Abboud said: "The disconnect between customer expectations and what banks in the GCC can deliver is more distinct than ever. This is the message from EY’s conversations with more than 2,000 customers across Saudi Arabia, UAE, Qatar and Kuwait, an analysis of 700,000 sentiments on social networks; and discussions with 30 leading banks and 80 banking industry leaders.
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By GlobalData"Addressing customer needs in an increasingly digital world means disrupting and rewiring existing business models for a fresh customer experience. Our research suggests that up to 50% of retail banks’ net profit could be at stake."
Trust, convenience and personalisation form the foundation of customers establishing a digital relationship with their bank, while technology is the enabler, reveals the report.
Seventy one percent of the surveyed GCC customers said that they would increase use of payment services if their banking relationship was made more simple and accessible.
"Mobile-first is the future of retail banking in the GCC, but it is not enough for banks to just introduce new digital channels. They must reinvent their customer processes to offer technology-enabled, simple, end-to-end banking experiences. The key solutions in demand that could benefit tremendously from digitization are payments, account opening and mortgages, with a significant potential to increase value per customer for banks," added Sommerin.
