Andreas Andreades, CEO Temenos
Geneva – Banks risk jeopardising future customer acquisition and retention by failing to recognise the continued importance of factors such as traditional branch networks and parental influence, a survey by Temenos has revealed. This is one of the key findings of the survey, commissioned to understand youth attitudes and behaviours relating to personal finances, payments and banking of 1’400 16-18 year olds from the UK, China and Brazil.
Whilst contemporary banking channels such as mobile are gaining traction among the youth segment, the research, conducted by Survey Shack on behalf of Temenos, found that traditional banking channels and influences are key drivers among this segment when looking at establishing a new banking relationship.
Parental influence as the single biggest driver
Respondents from UK and Brazil cited parental influence as the single biggest driver behind decisions to open a bank account. 37% of Brazilian and 33% of UK respondents stated that they would choose a bank because their parents banked there. All three countries rated branch location as the second biggest driver, with 28% of respondents citing this as the most significant consideration. 90% of respondents globally believe that the branch will serve a purpose for them in the future.
Increasing trend in mobile banking
The study also suggests an increasing trend emerging in mobile banking among the next generation, notably in m-commerce. This is particularly evident in China, where 17% of respondents already use their mobile for purchases. This evidences an underlying acceptance for performing sometimes complex transactions using this channel, 40% of respondents globally regularly use their mobile handset for accessing social media, the UK being the highest user at 60%. “With so much market emphasis being placed on digital and mobile channels, which play a very important part in the future of financial services, banks mustn’t lose sight of the continued importance of traditional channels. This research illustrates that banks need to be responsive to these trends and should consider a balanced attitude to channels, using mobile and other modern channels where appropriate but not underestimating the value of traditional bricks and mortar, even when attracting the younger generation.”, commented Mark Gunning, Global Director, Banking Services, Temenos.
For a copy of the full research report, please contact Kristine Solf at [email protected]
Founded in 1993 and listed on the Swiss Stock Exchange (SIX: TEMN), Temenos Group AG is a global provider of banking software systems in the Retail, Corporate & Correspondent, Universal, Private, Islamic and Microfinance & Community banking markets. Headquartered in Geneva with 61 offices worldwide, Temenos serves over 1100 customers in more than 120 countries. Temenos’ software products provide advanced technology and rich functionality, incorporating best practice processes that leverage Temenos’ experience in over 600 implementations around the globe. Temenos’ advanced and automated implementation approach, provided by its strong Client Services organisation, ensures efficient and low-risk core banking platform migrations. Temenos is top of the IBS Sales League Table 2010; winner every year since its launch of the Best Core Banking Product in Banking Technology magazine’s Readers’ Choice Awards and ranks 26th in the American Banker top 100 FinTech companies Temenos customers are proven to be more profitable than their peers: data from The Banker – top 1000 banks shows that Temenos’ customers enjoy a 54% higher return on assets, a 62% higher return on capital and a cost/income ratio that is 7.2 points lower than non-Temenos customers.