The whole point of collecting big data is to learn more about your customer needs in order to better design products and services to help those customers, and in the process boost profitability. Unfortunately, some organizations aren’t really grasping that concept as fully as they should.
Consider a new survey by business and IT services provider NTT Data Inc., which shows that the banking industry has much work to do in terms of using technology to better serve customers.
The company surveyed more than 1,000 U.S. consumers and more than 100 U.S. bankers in January 2016, and the research finds that one in three consumers would consider leaving their bank for a better online and mobile experience.
In other highlights of the report, 71% of consumers think their bank could better support their banking needs; 78% of banker IT budgets are spent maintaining legacy core deposit systems; and banks see major business benefits from investing in a new core deposit system, with 48% wanting to upgrade customer experience.
Nearly half of the consumers surveyed (47%) say they would consider Target or Wal-Mart as a banking alternative.
“Modernizing core deposit systems should be a top priority for banks in 2016,” said Peter Olynick, senior practice lead, Retail Banking, at NTT Data Consulting. “This effort will enable banks to satisfy rising consumer expectations, achieve a myriad of operational efficiencies and improve their time-to-market for innovation products.”
Antiquated legacy systems are hindering the banks’ ability to pursue growth opportunities and improve customer experience, Olynick said.
A majority of the banks surveyed, 81%, expect to maintain or increase investments in sustaining current core deposit systems, and only 4% are planning to replace existing core deposit systems in the next three years.
Register or login for access to this item and much more
All Information Management content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access