In a further challenge to the financial services industry, a new report has found that seven out of 10 consumers globally welcome Robo-Advice for banking, insurance and retirement services.
Professional services company Accenture surveyed 32,715 respondents across 18 countries and regions including Australia, Hong Kong, Indonesia, Japan, Singapore and Thailand.
Respondents were consumers of banking, insurance and wealth management services; they were required to have a bank account and an insurance policy and were asked if they used an Independent Financial Advisor, Wealth Manager or Asset Manager.
Integrate Robot and Human Services
Accenture's report «Financial Providers Transforming Distribution Models For The Evolving Consumer» says that seven in 10 consumers around the world would welcome robo-advisory services – computer-generated advice and services that are independent of a human advisor – for their banking, insurance and retirement planning.
Yet, a large number of consumers still want human interaction for their more complex needs, leaving firms challenged with blending a physical presence with an advanced digital user-experience, as they look to integrate robot and human services.
Emerging Markets Embrace
The research also found that the countries with the biggest appetite for robo-advice are in the emerging economies of Indonesia (92 percent), Thailand (90 percent), Brazil (86 percent) and Chile (84 percent) – all markets where it is already common to use a smartphone or other digital device as the primary vehicle for financial services interactions. However even in the countries with the lowest demand more than half of consumers surveyed said they are willing to use robo-advice.
Google, Amazon, Facebook and Apple
The survey also found that consumers are willing to switch to non-traditional providers for financial services. Nearly one-third would switch to Google, Amazon or Facebook for banking, insurance and financial advisory services.Tech giants are not the only ones putting pressure on financial service firms; nearly the same percentage of global consumers would also consider switching to a supermarket or retailer for their banking (31 percent) and insurance (30 percent) services.
«Consumers expect nearly all of their transactions to be on par with the service they receive from GAFA (Google, Amazon, Facebook and Apple) companies, which poses a challenge for banks in particular,» said Alan McIntyre, (pictured) Senior Managing Director, Head of Accenture Banking.
Data as Currency
The survey also found that consumers are willing to share their data with financial services providers in exchange for benefits like less expensive and faster services. Globally, 67 percent would grant their bank access to more personal data, but 63 percent want more tailored advice and demand a priority service – such as expedited loan approvals – or a monetary benefit, such as more competitive pricing, in return for the information they share. More than half (57 percent) of consumers would grant their insurance provider access to personal data, but 64 percent want more tailored advice in exchange.
Three Consumer Personas
Accenture identified three distinct consumer personas from the research with specific characteristics around what they value most from their financial service providers, how they want to access services in the future, and how they would like to embrace digital innovation.
Nomads: Highly digitally active group, ready for a new model of delivery, represents 39 percent of consumers surveyed, but significantly more in less developed economies, such as Brazil where Nomads were more than 60 percent.
Hunters: Searching for the best deal on price, represents 17 percent of consumers surveyed and tend to skew a little older.
Quality Seekers: Looking for high quality, responsive service and data protection, represents 44 percent of consumers.
