{"id":42072,"date":"2021-03-10T15:50:51","date_gmt":"2021-03-10T07:50:51","guid":{"rendered":"http:\/\/www.upgrademag.com\/web\/?p=42072"},"modified":"2021-03-10T15:50:55","modified_gmt":"2021-03-10T07:50:55","slug":"56-of-filipinos-prefer-using-digital-banking-during-financial-hardship","status":"publish","type":"post","link":"http:\/\/www.upgrademag.com\/web\/2021\/03\/10\/56-of-filipinos-prefer-using-digital-banking-during-financial-hardship\/","title":{"rendered":"56% of Filipinos prefer using digital banking during financial hardship"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>A recent survey by global analytics software firm FICO has revealed that\u00a056% of Filipino consumers\u00a0prefer to use digital channels to engage with their bank during financial hardship.\u00a0<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The poll conducted in December 2020, during the height of the global COVID-19 pandemic, demonstrates the willingness of consumers to embrace digital banking and the opportunities that exist for banks to further develop their offering.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The high level of smartphone penetration in the Philippines meant that\u00a029 percent of Filipinos preferred to communicate about hardship via their mobile banking app; 12 percent used internet banking; 9 percent communicated via email; 4 percent preferred telebanking and 2 percent wanted to use virtual conference technology.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe risk of infection and social distancing requirements made branch visits less appealing last year, accelerating a shift to digital banking channels globally,\u201d\u00a0said Aashish Sharma, risk lifecycle and decision management lead for FICO in Asia Pacific. \u201cBeing able to deliver and manage numerous channels in line with customer preference and deliver a seamless and engaging experience is a challenge that is here to stay. Investment in customer management and communication tools that span these channels and product silos, and can deliver personalization and improved decision making, is key to making digital banking a success.\u201d<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-large is-layout-flow wp-block-quote-is-layout-flow\"><p>Customer attitudes to new technology from banks such as debt collection automation can yield some interesting preferences and behaviors.<\/p><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt is worth noting that during periods of hardship, some customers prefer to deal with the issue using intelligent, automated online services, such\u00a0 as\u00a0 our\u00a0FICO Customer Communication Services\u00a0(CCS) so as to avoid the embarrassment of talking to an agent about outstanding loans. If customers prefer digital channels during times of hardship, their most difficult time, it seems to me we can expect branch banking to continue its decline.\u201d\u00a0explained Sharma.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Importance of maintaining banking relationships<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Banks still have a data and relationship advantage when compared to fintech challengers. The survey\u00a0revealed that across Asia Pacific, one in three consumers preferred to have all their banking needs serviced by one bank. In the Philippines this was\u00a0higher at 40%, with\u00a0a further 34%\u00a0saying that they\u00a0\u2018somewhat agreed\u2019\u00a0they would like to deal with just one primary bank.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cManaging multiple bank accounts or finance products with different lenders can often be a complex, time-consuming and costly process for the average banking customer,\u201d\u00a0said Sharma. \u201cDigital banking users today are looking for greater control and visibility of their financial position.\u201d<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-large is-layout-flow wp-block-quote-is-layout-flow\"><p>When asked about their willingness to try a fintech or challenger bank,\u00a024% of Filipinos\u00a0said that they were inclined to consider a competitor with a further\u00a043%\u00a0relatively open to the idea.<\/p><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cTo consolidate and strengthen main bank engagement, lenders need to offer digital banking features that compete with the challengers to ensure the stickiness and viability of long-term customer relationships,\u201d\u00a0added Sharma.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Most appealing reasons to switch banks<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When asked about the reasons they would make the switch to a competitor,\u00a038 percent of Filipino consumers\u00a0said their number one reason would be to secure improved personalization and controls in their digital banking service.\u00a0The poll defined this as the ability to view transaction history, update personal details, reset passwords and other such functions. Interestingly, personalization and control was also the top reason for switching across Asia Pacific (31%).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Other top switching drivers across Asia Pacific were;\u00a0the ability to control a payment card\u00a0(set transaction limits, lock\/unlock);\u00a0the ability to set up recurring payments; and\u00a0improved security features\u00a0such as biometrics and two-factor authentication.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">FICO\u2019s\u00a0Advancing New Experiences in Digital Banking\u00a0survey was conducted in December 2020 using an online,\u00a0quantitative poll of 5,000 consumers\u00a0across\u00a0ten countries,\u00a0carried out on behalf of FICO by an independent research company. The countries surveyed were\u00a0Australia, Hong Kong, Indonesia, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand and Vietnam.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The poll conducted in December 2020, during the height of the global COVID-19 pandemic, demonstrates the willingness of consumers to embrace digital banking and the opportunities that exist for banks to further develop their offering.<\/p>\n","protected":false},"author":6,"featured_media":42073,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1779,19,22],"tags":[413,1185,4867,2095,6498,6151,548,1034,746,1974],"class_list":["post-42072","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-headlines-2","category-headlines","category-spotlight","tag-banking","tag-banking-and-finance","tag-banking-industry","tag-fico","tag-good-tech","tag-high-tech","tag-online-banking","tag-online-payments","tag-online-shopping","tag-online-transactions"],"_links":{"self":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts\/42072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/comments?post=42072"}],"version-history":[{"count":0,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts\/42072\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/media\/42073"}],"wp:attachment":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/media?parent=42072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/categories?post=42072"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/tags?post=42072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}