Rise in acceptance of robo services creates
challenge for financial services industry: strike a balance between
humans and robots
Seven in 10 consumers around the world would welcome
robo-advisory services – computer-generated advice and services
that are independent of a human advisor – for their banking,
insurance and retirement planning, according to a new report by
Accenture (NYSE:ACN). Yet, a large number of consumers still want
human interaction for their more complex needs, leaving firms
challenged with blending a physical presence with an advanced
digital user-experience, as they look to integrate robot and human
services.
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The global Distribution & Marketing Consumer research by
Accenture, which includes a survey of nearly 33,000 consumers in 18
countries and regions, found that the vast majority are willing to
receive exclusively robo-generated advice for certain banking and
insurance products. Consumers are now open to robo-advice to help
determine which bank account to open (71 percent), which insurance
coverage to purchase (74 percent), and how to plan for retirement
(68 percent). Nearly four out of five (78 percent) consumers said
they would welcome robo-advice for traditional investing, where the
technology first emerged.
Consumers also Expect First-Class Human Interaction
However, the study also found that nearly two-thirds of
consumers still want human interaction in financial services,
especially to deal with complaints (68 percent) and advice about
complex products such as mortgages (61 percent).
Piercarlo Gera, senior managing director, Accenture Financial
Services, said: "We found strong consumer demand exists today for
robo-advice in all areas of financial services - banking, insurance
and financial advice. While financial institutions may expect to
benefit from internal cost reduction by providing customers with a
‘robo’ option, our research found that consumers also expect
first-class human interaction. Successful financial services firms
will therefore need a "phygital" strategy that seamlessly
integrates technology, branch networks and staff to provide a
service that combines physical and digital capabilities and gives
consumers a choice."
Consumers indicated the main attractions for using robo-advice
platforms is the prospect of faster (39 percent) and less expensive
(31 percent) services, and because they think computers/artificial
intelligence are more impartial and analytical than humans (26
percent).
The research found that the countries with the biggest appetite
for robo-advice are in the emerging economies of Indonesia (92
percent), Thailand (90 percent), Brazil (86 percent) and Chile (84
percent) – all markets where it is already common to use a
smartphone or other digital device as the primary vehicle for
financial services interactions. Even in the countries with the
lowest demand – Canada (56 percent), Germany (59 percent) and
Australia (61 percent) – more than half of consumers surveyed said
they are willing to use robo-advice.
Non-traditional Providers Hold Strong Appeal
The survey also found that consumers are willing to switch to
non-traditional providers for financial services. Nearly one-third
would switch to Google, Amazon or Facebook for banking services (31
percent), insurance services (29 percent) and financial advisory
services (38 percent). For consumers aged 18 to 21 years old, the
number willing to switch banking services to one of these companies
only rises to 41 percent, indicating that many younger consumers
see value in traditional financial institutions. Tech giants are
not the only ones putting pressure on financial service firms;
nearly the same percentage of global consumers would also consider
switching to a supermarket or retailer for their banking (31
percent) and insurance (30 percent) services.
Alan McIntyre, senior managing director, head of Accenture
Banking, said: “Consumers expect nearly all of their transactions
to be on par with the service they receive from GAFA (Google,
Amazon, Facebook and Apple) companies, which poses a challenge for
banks in particular. Banks need to create branches that provide an
advanced digital experience combined with convenient locations,
while also developing an online digital experience that can compete
head on with the tech giants. The vast majority of today’s
consumers view their bank relationships as entirely transactional;
in order to gain customer loyalty, banks have to be more assertive
in using technology to provide tailored, personalized offerings
when, where and how customers want them.”
Personalization
The survey found nearly two-thirds of consumers are interested
in personalized insurance (64 percent) and banking (63 percent)
advice based on their individual circumstances, and when asked
about wealth management advice, that increases to 73 percent.
Nearly half of consumers (48 percent) want banks to play a
supporting role in the purchasing process for non-banking products,
such as a house or new car or services related to those purchases
(i.e. insurance products, assistance with the sale and/or closing
process). Consumers indicated that banks could assist with these
important decisions by sending helpful information based on
consumer location data, price range and other personal
preferences.
Data as Currency
The survey also found that consumers are willing to share their
data with financial services providers in exchange for benefits
like less expensive and faster services. Globally, 67 percent would
grant their bank access to more personal data, but 63 percent want
more tailored advice and demand a priority service – such as
expedited loan approvals – or a monetary benefit, such as more
competitive pricing, in return for the information they share. More
than half (57 percent) of consumers would grant their insurance
provider access to personal data, but 64 percent want more tailored
advice in exchange.
Three consumer personas
Accenture identified three distinct consumer personas from the
research with specific characteristics around what they value most
from their financial service providers, how they want to access
services in the future, and how they would like to embrace digital
innovation.
Nomads: Highly digitally active group, ready for a new
model of delivery, represents 39 percent of consumers surveyed, but
significantly more in less developed economies, such as Brazil
where Nomads were more than 60 percent
Hunters: Searching for the best deal on price, represents
17 percent of consumers surveyed and tend to skew a little
older
Quality Seekers: Looking for high quality, responsive
service and data protection, represents 44 percent of consumers
The full report can be downloaded at
www.accenture.com/FSConsumerStudy.
Methodology
Accenture surveyed 32,715 respondents across 18 countries and
regions including the US, Canada, Benelux, France, Germany,
Ireland, Italy, Nordic countries, Spain, the United Kingdom,
Brazil, Chile Australia, Hong Kong, Indonesia, Japan, Singapore and
Thailand. Respondents were consumers of banking, insurance and
wealth management services; they were required to have a bank
account and an insurance policy and were asked if they used an
Independent Financial Advisor, Wealth Manager or Asset Manager,
with total financial advisory responses totaling 9,987. Respondents
covered multiple generations and income levels. The survey was
conducted during May and June 2016.
About Accenture
Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy,
consulting, digital, technology and operations. Combining unmatched
experience and specialized skills across more than 40 industries
and all business functions – underpinned by the world’s largest
delivery network – Accenture works at the intersection of business
and technology to help clients improve their performance and create
sustainable value for their stakeholders. With more than 394,000
people serving clients in more than 120 countries, Accenture drives
innovation to improve the way the world works and lives. Visit us
at www.accenture.com.
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AccentureMelissa Volin, + 1 267 216
1815melissa.volin@accenture.com
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