Poor customer service at high street banks is causing consumers to turn to challengers such as Monzo, a new report has found.
Lower costs, ease of use and faster service are found to be the top reasons as to why consumers are turning to these non-traditional players.
Rene Hendrikse, EMEA MD, Mitek, said: “It’s not news that banking customers are unsatisfied with the service they’re getting from the big banks – and that the challengers are winning these customers over. This is because customers these days demand speed and simplicity above all else. Having said that, given the mounting regulatory pressure banks are under, security is still the most important piece of the onboarding puzzle.
“As it turns out, customers aren’t necessarily against this: research from Experian shows that people not only tolerate a little friction in their banking, but actively welcome it. Two thirds (66 per cent) of consumers say that they appreciate security “hurdles” because it makes them feel better-protected – though younger customers are less likely to tolerate barriers than older respondents. Nevertheless, it shows that financial institutions need not compromise security at the altar of speed and convenience.
“With the prevalence of online fraud growing every day, most customers appreciate the importance of conducting thorough security checks, and are open to taking a few extra steps to verify their identities.
“But there’s an important balance between providing a speedy and simple online banking experience and still ensuring security. A customer’s first impression of a bank rests on their experience of account opening and onboarding, but bringing physical identity documents into a branch – as has traditionally been the case for onboarding – is the antithesis of the fast, convenient experience that customers now want.
“Digital identity verification is an example of a new technology making it possible to marry the competing needs of speed and security. Customers can then simply take a picture of their ID document, which AI technology check for any signs of forgery. Then, thanks to the growing sophistication of biometric technologies, this can be compared to a selfie taken by the prospective customer. This provides an intuitive, guided user experience, meaning that automated checks can take a matter of seconds – without compromising on security.”