Trust is perishable and less than 1 in 2 customers today are satisfied with their financial institution’s performance, according to Telstra.
Trust is perishable and less than 1 in 2 customers today are satisfied with their financial institution’s performance, according to Rocky Scopelliti, Global Industry Executive for Banking, Finance and Insurance at Telstra.
Speaking at FST Media’s 10th annual Technology & Innovation – The Future of Banking and Financial Services conference in Sydney today, Scopelliti said that in the shifting paradigm surrounding customer trust, the battle for generational and digital relevancy has increasingly defined the ways in which banks interact with their customers.
“We need to understand what’s happening in personalisation … we need to rethink trust in this world and shift it away from people,” Scopelliti said.
“Mobile has become the link between human and digital identity in the new DNA of Trust.”
In his presentation, Scopelliti drew on a quote by Francisco Gonzalez Rodriguez, Chairman and CEO of BBVA Spain in 2009 to help illustrate this new paradigm with a shift towards “branchless banking” and “alternative” financial providers.
“Up to half of the world’s banks will disappear through the cracks opened by digital disruption of the industry,” Rodriguez had said.
In a report published by Telstra in June this year, Mobile Identity – The Fusion of Financial Services, Mobility and Identity, a key finding was that 53 per cent of consumers surveyed in 2014 rank trust as the most important driver when it comes to choosing a financial services provider.
With 33 per cent of Generation X and Y believing they will not need a bank in the future, Scopelliti said the report shows the increasingly changing nature of the identity of Gen X and Gen Y individuals and their use of mobile devices.
“When it comes to thinking about cybercrime, the impact of cybercrime on [financial] institutions’ growth has become front and centre of their strategic priorities,” Scopelliti said.
“Identity theft has now become the single reason why Gen X and Y will leave an institution.”
However, Scopelliti said there was a great opportunity for change and the onus was on financial incumbents to increase customer confidence and loyalty.
“When it comes to trust, trust matters. Trust has become the most important reason why generations X and Y will choose one financial service provider over another,” Scopelliti said.
“Identity, security and privacy is one single conversation and it is really important we think of those things in unison.”