Bank customers just love it online – shame about the service

A new study finds that banks are not taking full advantage of their online banking platforms, despite increasing customer engagement in the channel

Six out of ten consumers say that online banking has become the most valuable factor to engagement over the past two years, ranking it higher in value than banks' trustworthiness and even their return on their money in the bank.

The research also finds that online channels typically deliver only functional banking services, but that around half of customers want banks to incorporate social and human aspects of customer service - such as more personalised customer service and tailored advice - into online banking.

Furthermore, banks use of new technologies such as mobile technology, social networking and video conferencing has untapped opportunity into their customer contact. Customers are not using these newer communications channels for buying products, but rather as channels for gleaning advice and information. Only 1% of consumers, who have sought advice from banks in the last month, have done so through video conferencing. Mobile phone applications (1%) and social networking (1%) are of similarly low incidence.

Cable&Wireless Worldwide, who commissioned the study, has long-term relationships with most of the world's leading banks and in the UK provides communication solutions to eight out of 10 of the leading retail banks. This includes integrated social media and online channels with banks contact centre and branch environments, and also connectivity to over 70% of contact centre agents with their customers and 4,000 UK ATMs.

Michele Metcalfe, Director of Banking & Financial Services at Cable&Wireless Worldwide, says, "Consumers increasingly prefer remote interaction, but also want good customer service, greater trustworthiness and a fair level of engagement with the banks. These findings suggest that financial institutions have an opportunity to better meet customer preferences by investing in the right online innovation."