Banks Are Wasting Marketing Budget Due to Lagging Digital Sales Processes

Retail Banker International recently ran an article written by Avoka CMO, Don Bergal, where he discusses the importance of digitizing sales, in addition to marketing, to convert customers. The article focuses on the retail banking sector in the UK market and points out that while two-thirds of UK adults now own a smartphone, only 9% of personal banking products in the UK can be applied for using a mobile device. We know from the research presented in the 2016 State of Digital Sales in Banking Report released by Avoka this summer that the UK is not alone. Our research shows that only 37% of Australian bank products offer mobile support for account opening (81% of Australians own a smartphone) and 18% in the U.S. do (64% of US adults own a smartphone). Clearly there is room for improvement.

Consumers are demanding the ability to apply for financial products via multiple devices. In 2015, Aite Group found that nearly 25% of accounts are now opened via a mobile device. 81% of new accounts today are opened by millennials and GenX, which means this percentage will continue to rise sharply over the next decade.

Millennials have also entered the age of peak profitability, which means that banks need to focus heavily on catering to this group and their needs and preferences.This number will continue to rise given that 80% of millennials have applied (or attempted to apply) for a bank account using a mobile device.

When we speak to bank customers that already have some sort of digital or mobile presence they say they still have an “abandonment problem” – customers who start the loan or account application process but drop out before the end. There are a lot of drivers for this problem, but it all comes down to lost sales.

If learning more about how to gain insight into your digital sales process is important to you, read the article. If you want to talk to us about how to successfully integrate digital into a continuous omni-channel experience for customers across the marketing, selling, and delivery of products, please contact us.

Derek Corcoran
Derek Corcoran

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