1 in 4 in APAC plans to switch banks over the next year: study
48% are also interested in using digital-only banks to meet their needs.
A quarter (22%) of consumers across the Asia Pacific are planning to switch banking providers over the next 12 months, with 48% also interested in using digital-only banks to meet their needs, according to a Qualtrics study.
This is despite two-thirds of respondents saying they were satisfied with their banking provider (68%) and health or life insurer (65%), with 27% also looking to change their insurance provider.
Younger consumers are the most likely to switch providers over the next 12 months, with 25% of those aged under 40 and 21% of 41- to 50-year-olds saying they plan to change who they bank with. In contrast, just 14% of people aged 50+ plan to switch banking providers. Similar results are seen in insurance: 29% of people aged under 40 are likely to switch, compared to 27% of 41- to 50-year-olds and 20% of those aged 50 and above.
More than half of respondents were open to buying travel/home insurance (55%) and health and life insurance (51%) policies from non-traditional providers. Consumers are also moving away from traditional providers when it comes to investing, with 73% saying they adopted digital channels such as online brokers, fintech apps, and digital wealth management solutions.
Product and customer experience consistently ranked in the top reasons driving trust in providers and the reasons for choosing digital-only offerings, Qualtrics said. Alongside competitive rates and brand perception, the quality of the mobile app and website, products, and customer service are the top factors driving trust in the industry.
In addition, consumers said they were opting for digital-only offerings for better customer experience, lower fees and charges, flexible products, higher returns, and more personalisation.
Almost seven in 10 (69%) said it was very important their provider captures ongoing feedback from them regarding products and services—and its important feedback is acted on. Nearly half (48%) said it was unlikely they’d purchase from a provider in the future if the organisation failed to respond to their feedback.
However, whilst the majority of consumers are opting to bank using digital channels, human interaction remains important when choosing new products and insurance policies.
When purchasing an insurance policy, 32% of respondents said they would like a mix of digital and face-to-face interaction, 26% want more digital interaction with a financial advisor, whilst 23% want more face-to-face interaction.