NCR, a global leader in omni-channel solutions, has released findings from a study identifying consumer behaviours and attitudes towards banking services across Australia and New Zealand.
Titled “Banking in Australia and New Zealand: At a digital crossroads,” the research results reinforce the need for organisations to provide consumers with greater choice on when and how they interact with brands and make purchases, particularly among younger audiences. As the banking sector evolves with increased use of connected devices and other disruptive players entering the marketplace – like purely digital ‘neobanks’ – consumers have more choices than ever for core banking services.
“To remain competitive and succeed in this highly digital economy, organisations must be able to match the expectations of consumers – especially among younger Australians – or risk losing out,” said Craig Jennings, managing director of financial services at NCR in Australia. “Millennials will consider switching to another financial institution or neobanks if it makes their lives easier and gives them the experience they want. However, this research also identified that millennials want more choice and peace of mind knowing their information remains protected, no matter where they are shopping.”
The research suggests that Australians will continue to use cash in tandem with digital payment solutions. An average of 66 per cent of consumers across all age groups are withdrawing cash from ATMs at least once a month, and more than half (51 per cent) are logging into their mobile banking apps every week.
The report also showed that consumers are loyal to their existing financial institutions due to convenience and user-friendly experience. Around two thirds of Australians across Generation Z (70 per cent), millennials (62 per cent) and Generation X (64 per cent) are sticking with their current bank.
“The majority of millennials have completed their studies and entered the workforce. As Australia’s second largest demographic, this cohort is fast becoming a core client base for the banking sector, making it incredibly important for banks to better engage with millennials,” commented Jennings.
Younger Australians are also becoming more engaged in their financial affairs. The report identified a strong relationship between mobile-first millennials and the desire for value-added services that help consumers track their spending online and offline.
“NCR has a heritage in providing organisations with the tools they need to grow as a business and deliver exceptional customer experiences,” Jennings continued. “The uptake of new digital payment solutions reinforces our commitment to help businesses accept any payment, whether it’s cash or contactless, quickly and easily”.
Coinciding with the launch of the GlobalData research is the opening of NCR’s new Australian headquarters. Located in Chatswood, New South Wales, the new space features state-of-the-art facilities, including a customer experience centre showcasing the latest technologies in software and hardware solutions to enable millions of transactions each day.
“Banking in Australia and New Zealand: At a digital crossroads” was commissioned by NCR Australia in conjunction with GlobalData. Total sample size was 7,000 consumers, with 5,000 respondents in Australia and 2,000 in New Zealand. Findings from this are based on results from the GlobalData 2018 Retail Banking Insight Survey, which took place from January to March 2018 across 20 markets globally.