New Verint Research Reveals a Shift in Consumer Banking Trends During the Pandemic

Rhea-AI Summary

Verint (NASDAQ: VRNT) released new research indicating a shift in consumer banking habits, with users averaging 4.1 channels and Generation X averaging 5.3. The study highlights a growing popularity of micropayment apps, yet trust issues remain, especially among Baby Boomers. Significant reliance on digital banking solutions was observed, but 75% faced self-service failures. Notably, American Express and U.S. Bank reported increased customer satisfaction year-over-year. This ongoing evolution in customer engagement underscores the complexities banks must navigate to maintain satisfaction and loyalty.

Positive

• American Express, U.S. Bank, and Citizens Bank reported significant year-over-year gains in customer satisfaction.
• Increased customer satisfaction correlates with higher loyalty and trust, beneficial for bank reputations.

Negative

• 75% of consumers experienced failures in digital self-service, leading to escalated contact with support channels.
• Trust in micropayment apps remains low among older consumers, particularly Baby Boomers, who show reluctance in usage.

Consumers are banking through more channels than ever before, according to new research released today by Verint^® (NASDAQ: VRNT), The Customer Engagement Company™. Consumers surveyed in March 2021 used an average of 4.1 channels, while Generation X (Gen Xers) banked using an average of 5.3 channels.

The study also shows growing adoption and usage of micropayment apps. Use of micropayment apps has increased since 2020, with twice as many customers using Venmo and Zelle and nearly three-quarters of all respondents using PayPal – but consumer concerns about trust related to use of these services remains a barrier.

Trust increases significantly when these apps are operated through the customer’s bank, but trust is still an issue particularly for older generations. While 39% of Millennials and Gen Xers use these apps more now than in 2020, Baby Boomers remain wary and are less likely to trust the bank's app, and 46% of Baby Boomers don't use these apps at all.

A significant percentage of banking customers tried a digital-first, self-service approach to engaging with their bank during the pandemic – 75% to resolve an issue, 73% to open an account or apply for a new product or service, 73% to gain information on a new product or service, and 60% to conduct a transaction. However, the high rate of digital self-service failure is forcing consumers to escalate to the contact center, chat, email, drive-thru or branch locations.

Ease of digital banking and availability of security measures are among the top consumer priorities. Nearly two-thirds (63%) of consumers leverage fraud alerts. Of those not using this feature, 40% didn’t know they were available, while 21% said they didn’t know how to sign up.

American Express, U.S. Bank, Citizens Bank, and Wells Fargo showed the largest year-over-year gains in customer satisfaction (CSAT), but all top 15 banks included in the evaluation showed improvement in this key metric, highlighting the industry’s proficiency in navigating a tumultuous year while continuing to deliver excellent experiences. When measured using a predictive methodology, higher CSAT drives loyalty, trust, and recommendations. American Express, TD Bank, and U.S. Bank also showed statistically significant increases in Net Promoter Scores^® (NPS).

“Banks have just been through one of the most challenging years in recent history, and this arduous landscape is unlikely to change anytime soon,” says Verint’s Kevin Daly, global vice president and GM, experience management. “Our research shows that as customer experience grows more important every year, the realm of customer engagement and customer experience is getting harder to navigate. Customer journeys are more complex and expectations are higher than ever. The largest banks in the U.S. have found a way to stay on top over the past year but will need to stay vigilant. Meanwhile smaller banks will have to work twice as hard to compete.”

The research is based on the Verint Experience Index™: Banking benchmark survey of consumer satisfaction with 15 leading banks and includes CSAT and NPS rankings. Consumers were surveyed in March 2021, allowing for comparisons to customer experience in 2020, both just before and just after the pandemic started. For more than a decade, the Verint Experience Index (VXI) has chronicled digital and omnichannel experiences across key industries including banking.

Banks were evaluated on their proficiency across five key drivers that impact customer satisfaction using Verint’s predictive model: branches (convenience, location variety, service level); confidence (transaction accuracy, security, protecting PII); products (meet financial requirements, flexibility, clarity of terms); representatives (understanding, responsiveness, resolution); and services (account management, access, simplicity).

Click the link to download Verint Experience Index: Banking report. In this month’s webinar series, Banking Customer Experience Data, explore how financial service companies can center on the customer for success in 2021.

Survey Methodology
The Verint Experience Index is a panel survey report chronicling customer experiences across key industries. This edition ranks the omnichannel customer experiences of the top 15 commercial banks in the U.S. as ranked by the Federal Reserve according to total number of assets. The study used a web panel with survey respondents that were representative of the U.S. general population, with at least 230 responses collected for each bank. To qualify for the survey, respondents had a personal checking or savings account with at least one of the 15 banks. Rankings in the Index are based on CSAT, using a scale of 0 to 100. NPS is also shown, on a scale of -100 to 100. When two or more scores are identical at one decimal place, the next decimal place is used to break ties and determine ranking. All wave respondents were independently sampled. Wave 3, the focus of this report, was fielded from March 2-29, 2021 with a total of 3,783 respondents. CSAT margin of error is ±1.79 and NPS margin of error is ±7.41. All significance testing was completed at a 90% confidence level.

About Verint
Verint^® (Nasdaq: VRNT) helps the world’s most iconic brands – including over 85 of the Fortune 100 companies – build enduring customer relationships by connecting work, data and experiences across the enterprise. The Verint Customer Engagement portfolio draws on the latest advancements in AI and analytics, an open cloud architecture, and The Science of Customer Engagement™ to help customers close the engagement capacity gap.

Verint. The Customer Engagement Company™. Learn more at Verint.com.

This press release contains “forward-looking statements,” including statements regarding expectations, predictions, views, opportunities, plans, strategies, beliefs, and statements of similar effect relating to Verint Systems Inc. These forward-looking statements are not guarantees of future performance and they are based on management's expectations that involve a number of risks, uncertainties and assumptions, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. For a detailed discussion of these risk factors, see our Annual Report on Form 10-K for the fiscal year ended January 31, 2021, and other filings we make with the SEC. The forward-looking statements contained in this press release are made as of the date of this press release and, except as required by law, Verint assumes no obligation to update or revise them or to provide reasons why actual results may differ.

VERINT, THE CUSTOMER ENGAGEMENT COMPANY, BOUNDLESS CUSTOMER ENGAGEMENT, THE ENGAGEMENT CAPACITY GAP and THE SCIENCE OF CUSTOMER ENGAGEMENT are trademarks of Verint Systems Inc. or its subsidiaries. Verint and other parties may also have trademark rights in other terms used herein.

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FAQ

What does the recent Verint research indicate about consumer banking habits?

The research reveals that consumers are using an average of 4.1 banking channels, with Generation X averaging 5.3 channels.

How has the use of micropayment apps changed according to Verint's study?

The study shows that twice as many customers are using Venmo and Zelle compared to 2020, with PayPal being used by nearly three-quarters of respondents.

What are the main concerns consumers have about micropayment apps?

Trust is a significant barrier, particularly among older generations, with 46% of Baby Boomers not using these apps at all.

What impact did the pandemic have on digital banking experiences?

During the pandemic, 75% of customers opted for digital self-service, but a high failure rate led many to seek assistance through other channels.

Which banks showed the largest gains in customer satisfaction according to the Verint research?

American Express, U.S. Bank, and Citizens Bank experienced the largest year-over-year increases in customer satisfaction.