Don’t go bankrupt and be trustworthy: this is the most important aspect when Hungarian customers choose a bank or insurance company, according to a national survey by Comnica and NRC. Research has shown the growing popularity of administration on digital channels. Half of the respondents say that in five years’ time they will consider it possible to browse through loan offers like a webshop and have their applications judged by artificial intelligence.
Nevertheless, the second most important factor in choosing a bank is the account available nearby. An interesting contrast is that since the outbreak, six in ten people manage their online finances more often than in person, and four in ten respondents would never go back to the account if all services were available online.
The respondents ranked the aspects taken into account when choosing a bank as follows:
- reliability and stability,
- proximity to the bank branch,
- the price of services and constructions,
- speed of administration,
- other customers’ online ratings and convenience,
- the possibility of digital administration,
- recommend friends and acquaintances,
- brand awareness.
It is not just young people who are banking online
According to the survey, two-thirds of customers in Hungary handle at least three-quarters of their banking or insurance business digitally, primarily through a smartphone application. Eighty-three percent of those aged 50-59 handle three-quarters of their cases digitally, but two-thirds of those over 60 in the study said they prefer to manage their finances online. This precedes the 18-29 age group.
The digital switchover is far from perfect
4 out of 10 clients stated that they could not complete their case initiated online. More than half of their failures were due to technical problems, with 51 per cent of respondents indicating a system crash or failure as an obstacle to administration. And 22 percent felt the process was completely opaque. The research also reveals that more than half of those surveyed would like to bank via live video chat.
Gergely Horváth, according to Comnica ‘s Director of Business Development, this result highlights the fundamental issue of digital administration.
To what extent can the management of banking and insurance matters be fully self-service? The results of the research highlight that customers will continue to need a human face and voice, even through video calling. Thus, not only a bold utopia, but also the best choice for a business strategy is digital administration based on purely self-service foundations for banks and insurers.
– said the director.
In Hungary, customers typically contacted their bank via video call when opening an account or taking out insurance. This is primarily required for remote client identification. According to the survey, 25 percent of customers already have a similar experience.
Can banks turn into a webshop?
Despite the fact that customers play a key role in choosing a bank and the availability of a branch and personal administration, half of the research participants say that traditional banking is an outdated practice. Forty percent said they would never be able to go to their financial institution’s account in person again if they could do everything through their smartphone or computer, video call, or online communication.
Looking to the future, more than half of respondents think it is conceivable that in five years’ time they will be using the services of banks and insurers just like webshops, putting financial products in their shopping carts. 42 percent also think it is conceivable that their creditworthiness will be assessed and their insurance risks assessed using artificial intelligence.
(Cover image: A customer withdraws banknotes from an ATM in Budapest on January 7, 2021. Photo: Akos Stiller / Bloomberg / Getty Images)