61 percent of consumers are demanding that digital customer experience offered by financial services institutions improve.
PLANO, TX – Feb. 28, 2018 – According to research findings released today by NTT DATA Services, a recognized leader in global technology services, 68 percent of financial services institutions (FSIs) report that mining and managing data is the most critical challenge for improving the digital customer experience. The complete report, Digital CX in 2020: Cracking the Code on Data, found that a myriad of both strategic and data issues loom large as digital customer experience (digital CX) matures.
“FSIs are handling the easy digital tasks well – checking balances, paying bills, monitoring savings and opening credit cards,” said Lisa Woodley, Vice President, Customer Experience, FSI Business Consulting for NTT DATA Services. “However, the challenge remains in accessing, mining and analyzing the kind of data needed to start connecting the dots for the consumer. FSIs will have to evolve how they think about and manage data if they want to quench the consumer’s thirst for personalization, customization and financial guidance.”
In September 2017, NTT DATA surveyed online 1,102 consumers and 102 financial services institutions, including bankers, insurers and wealth managers, to understand digital CX priorities, current challenges and areas for improvement.
Key Study Findings
- 61 percent of consumers demand that the digital experience with their bank, insurance carrier and wealth management firm improve.
- More than half (55 percent) of FSIs believe that digital CX is the most important part of the customer experience — improving customer retention, customer service and customer acquisition.
- However, FSIs struggle to use data and analytics to elevate the digital customer experience.
- 61 percent of financial institutions lack a vision for what to do with data
- 47 percent are unable to mine the data
- 55 percent can’t deploy the data
- 51 percent don’t have the proper analytics in place to act on the data
- Privacy and security of data remain major challenges for FSIs.
- 70 percent report data privacy as a major challenge
- 64 percent report security as major a challenge
- Top five data challenges for FSIs:
- Turning data into actionable information (56 percent)
- Organizing and managing data (51 percent)
- Integrating data across product channels (46 percent)
- Maintaining data quality (44 percent)
- Managing real time interaction data (36 percent)
- FSIs forecast limited increases in digital CX investment. Nearly half of FSIs surveyed (47 percent) expect budgets for IT projects to support digital CX to increase by 5-10 percent in 2018. However, 8 percent say they will cut digital CX budgets.
“When it comes to investment in digital CX overall, FSIs are spending just enough to stay competitive,” added Woodley. “With this level of spending, we believe that most FSIs can deliver only basic digital CX — meeting rudimentary requirements for ease of use, but little more. There is a definite gap between what companies want to do and what they are actually budgeting to do.”
Join NTT DATA’s Lisa Woodley on March 27, 2018, at 12:00 p.m. ET, for a live webinar discussing the study findings. Register here.
Download a copy of NTT DATA’s research report, Digital CX in 2020: Cracking the Code on Data.
About NTT DATA Services
NTT DATA Services partners with clients to navigate and simplify the modern complexities of business and technology, delivering the insights, solutions and outcomes that matter most. We deliver tangible business results by combining deep industry expertise with applied innovations in digital, cloud and automation across a comprehensive portfolio of consulting, application, infrastructure and business process services.
NTT DATA Services, headquartered in Plano, Texas, is a division of NTT DATA Corporation, a top 10 global business and IT services provider with 118,000+ professionals in more than 50 countries, and NTT Group, a partner to 88 percent of the Fortune Global 100.