By Staff writer
New research shows 63% would consider a branchless digital bank if they were to switch banks in the future
New research released has found that affluent middle class customers in the UAE are more likely to interact with their bank using digital channels than ever before.
According to Collinson Group, parent company of Priority Pass and ICLP, financial services brands looking to boost engagement must ensure their loyalty initiatives are aligned to their customers’ digital expectations.
The research found that 83 percent of affluent middle class customers use banking and finance apps – up from 36 percent in 2014.
It also revealed that 42 percent of customers prefer to do their banking online or via mobile app, while 32 percent prefer telephone banking and 26 percent prefer to go into a branch.
Collinson Group polled 6,125 of the top 10-15 percent of earners from Australia, Brazil, China, France, Hong Kong, India, Singapore, the United Kingdom, the United States of America and the UAE.
In the UAE, the research showeded that 66 percent make digital payments whenever they can while 64 percent believe mobile banking is incredibly important.
Nearly two-thirds (63 percent) said they would consider a branchless digital bank if they were to switch banks in the future.
Christopher Evans, director at Collinson Group, said: “Digital will be the biggest battleground in financial services as digitally native Millennials and Generation Z become more lucrative target audiences for the sector. We can expect to see digital engagement continue to soar over the next three to five years.
"Brands need to act now in order to improve their digital offering, or risk missing the opportunity to build loyal relationships with lucrative audience segments.”
He added that the UAE is perfectly placed to capitalise on the digital loyalty uprising, with additional insight from Collinson Group finding a strong appetite for loyalty programmes.
The research found that UAE banking loyalty programmes encourage 87 percent of members to spend more and that membership for bank loyalty programmes has risen from 25 percent in 2014 to 39 percent in 2016.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Recently, during a software update, a leading bank released their Terms & Conditions to be accepted by the customer in order to use the app.
After reading through the entire T&C's, two very shocking clauses included this:
1) The Digital Banking Service is provided entirely at the risk of the Subscriber who shall indemnify the Bank for all loss or damage, howsoever caused, resulting from the use of the Digital Banking Service
2) The Bank will not be responsible for any loss or damage arising directly or indirectly from any malfunction or failure of the Digital Banking Service
So, I pressed "Disagree", and uninstalled the App!
Prescient warning Mosa.
Thanks a lot for this.
I doubt people are even thinking of it!
Consumers pay in every way.