NTT DATA Consulting research highlights changing consumer banking expectations and dwindling loyalty to traditional banks
NTT DATA, Inc., a leading business and IT services provider, today released new market research for the financial services industry highlighting how financial institutions and consumers are being affected by the emergence of FinTech. The complete report, “Don’t Fear Modernizing Your Core,” found customer loyalty is declining as banks struggle to modernize their legacy core deposit systems — the foundational technologies behind the products and processes that serve their commercial and retail customers.
Key research findings include:
- 64 percent of banks see FinTech as a threat
- Half of US consumers, 46 percent, already have an account with a FinTech provider
- 22 percent of consumers described innovative offerings from FinTechs as, “this is how banking should be”
- 1 in 3 consumers would switch primary banks for better online and mobile technology
- 70 percent of bankers do not feel their process can quickly adapt to change, yet only 15 percent of banks expect to begin a modernization effort in the next three years
“The message from banking customers is clear: they want a better experience powered by the latest technologies and they don’t really care who is delivering it,” said Peter Olynick, senior practice lead of retail banking for NTT DATA Consulting, Inc. “Banks will lose customers and revenues because they can’t adapt to today’s changing market. And they can’t adapt if they don’t modernize their core deposit systems.”
In January 2016, NTT DATA Consulting surveyed more than 1,000 U.S. consumers and more than 100 U.S. bankers to investigate core deposit system modernization efforts at leading U.S. banks and the rising threat of consumers looking for banking alternatives.
NTT DATA Consulting takes an industry-centric approach to business and technology consulting. We seamlessly integrate business strategies and enabling technology to help clients accelerate business-driven transformation and compete in the digital world. NTT DATA Consulting has the unique ability to create end-to-end solutions by tapping the entirety of NTT DATA’s global technology and business process capabilities. In financial services, our 1,000-plus business consultants and 4,000 technology experts work with 25 of the leading financial institutions in North America.
NTT DATA is a leading business and IT services provider and global innovation partner with 80,000 professionals based in over 40 countries. NTT DATA emphasizes long-term commitment and combines global reach and local intimacy to provide premier professional services, including consulting, application services, business process and IT outsourcing, and cloud-based solutions. We’re part of NTT Group, one of the world’s largest technology services companies, generating more than $100 billion in annual revenues, and partner to 80% of the Fortune Global 100.