A recent study from financial services technology leader FISTM (NYSE: FIS) shows a dramatic increase over the past year in the use of mobile devices and other digital banking channels by consumers in India, demonstrating the extent to which country's demonetisation efforts are changing consumer banking habits.
FIS' third annual Performance Against Customer Expectations (PACE) report, which surveyed 1,000 banking consumers in India, found that more than 60 percent of survey respondents said they have used mobile devices this year to check their account balances, view recent transactions, pay bills, transfer funds or other banking needs. This was up from 39 percent of survey respondents in 2016 and 34 percent in 2015.
The FIS PACE report also shows that banks in India continue to underperform their peers in other countries in terms of meeting their customers' expectations. Indian financial institutions scored 75 points in the 2017 PACE study, one point higher than in 2016 but seven points below the global average PACE score.
Key Findings about Indian Consumers
What Gen Y (Age Group 18-36) in India Said
"More than ever, Indian consumers want to connect with their banks at their own convenience, at any time and from anywhere," said Ramaswamy Venkatachalam, managing director, India and South Asia, FIS. "As the economy shifts from cash and plastic to cashless, mobile and digital, banks need to establish a stronger multiple-service relationship with their customers. The PACE findings present a clear picture on where India's banks need to focus to remain first in the minds of their customers."
Overall, the 2017 FIS PACE study surveyed more than 8,000 banked consumers in eight countries, including India, Australia, Brazil, Canada, Germany, Thailand, the United Kingdom and the United States. Compared to consumers in other regions surveyed by FIS, Indian respondents place more importance on anywhere/anytime access to their accounts and digital payment options provided by their banks and, conversely, lower importance on in-person service and the ability of their banks to anticipate their financial needs.
Global PACE Survey results
The 2017 FIS Global PACE Study shows that while global banks are largely meeting consumer expectations for providing in-person and multi-channel services, they are still falling short in areas that are key to building relationships and consumer trust – such as following through on their promises, providing products that are free of hidden charges and fees, providing customized products and trusted financial advice, and helping their customers achieve their financial goals.
Other key findings from the 2017 global study:
A complete copy of the PACE report for India, as well as the global and other country-specific reports, can be downloaded from http://closethegaps.fisglobal.com and http://closethegaps.fisglobal.com/country-insights/.
FIS is a global leader in financial services technology, with a focus on retail and institutional banking, payments, asset and wealth management, risk and compliance, consulting, and outsourcing solutions. Through the depth and breadth of our solutions portfolio, global capabilities and domain expertise, FIS serves more than 20,000 clients in over 130 countries. Headquartered in Jacksonville, Fla., FIS employs more than 57,000 people worldwide and holds leadership positions in payment processing, financial software and banking solutions. Providing software, services and outsourcing of the technology that empowers the financial world, FIS is a Fortune 500 company and is a member of Standard & Poor's 500® Index. For more information about FIS, visit www.fisglobal.com.