An average day for your member: She wakes up, checks her phone, scrolls through her personalized feed on various social platforms. She uses Waze to get customized routes to work, gets personalized notifications throughout the day, watches a recommended video on Netflix based on her viewing history, then checks into her banking app and feels…underwhelmed. She checks her balance, pays a few bills but keeps her engagement to a bare minimum.

Why is that?

Throughout the day, members experience digital services that communicate how well they understand their customers by personalizing their offerings. Banks and credit unions are falling short in meeting these expectations.

According to NGDATA’s annual consumer banking survey, consumers have increasingly high expectations and demand exceptional customer service in exchange for their loyalty. This means that banks and credit unions must accelerate digital transformation across their organizations so that they have the tools to become fully customer-centric. Consumers must be at the center of their entire architecture as financial institutions meet raised expectations for service providers.

Customers want good service and a good customer experience, but banks aren’t delivering. Forty one percent of consumers responded that bad customer service would be their primary reason for switching to a new bank. That represents an eight percent jump over the past year.

What was surprising is that 72 percent of respondents said their banking provider’s customer service has not improved over the past year. This trend is even more pronounced with younger consumers: Respondents ages 25-34 cite cost as the least important factor in a decision to change banks. For Millennials, consumer sentiment goes far beyond how much is coming out of their wallet.

A few more data points:

  • 2% of consumers say they receive offers as part of a broader campaign rather than based on individual needs.
  • Nearly 40% of 18-34 year olds say they believe banks should leverage emerging automation technology like robots to improve their experience.
  • 2% of 18-34 year olds say they trust that an automated process can provide them with relevant and accurate information in their banking experience.

Credit unions that are able to adopt a truly customer-centric approach will be in a better position to anticipate customer needs and demands, and to be prepared to deliver offers based on individual preferences — an experience that people have grown accustomed to. Today’s consumer is asking for a better experience, but tomorrow’s consumer will demand it and won’t settle for anything less. Banks and credit unions that can’t deliver will be left behind.