Publicis Sapient’s latest Digital Life Index reveals that over a third of Swedes are dissatisfied with their bank, and many have already switched or are considering switching to a fully digital bank. What is driving this trend?
According to Peter Ekdahl, CEO of Publicis Sapient, digital banks attract customers with competitively attractive offers and a better digital experience. “However, traditional banks can build on trust and historical relationships while further developing their digital offerings.”
A recent survey shows:
STOCKHOLM, 10 November 2021 – According to Publicis Sapient’s latest Digital Life Index, 15% of Swedes have decided to switch banks in the coming year, and 23% are considering it. The study also found that 53% of all Swedes have an account with a bank that only offers online services—a significantly higher proportion than in major European countries (UK 27%, France and Germany both 38%) and higher than the global average of 44%. Among Swedes who do not have an account with a fully digital bank, nearly a quarter are considering opening one in the future.
For Peter Ekdahl, these results present a challenge for traditional banks: “When many Swedes open accounts with and move business to digital challengers but still keep some of their money with a traditional bank, there is a risk that the customer relationship and profitability will gradually erode, and that action will not be taken until it is too late.”
The percentage of people with a digital-only bank account by country:
Global average: 44%
The most important reasons for having an account with a fully digital bank are competitive pricing (33%), better incentives for becoming a customer (26%), and better benefits (23%). Among Swedes who do not have an account with a fully digital bank, only 14% want access to physical branches. However, 34% prefer an established bank. According to Peter Ekdahl, this is an opportunity: “Traditional banks can build on trust and historical relationships while further developing their digital offerings.”
Only 12% of Swedes say that most of their interactions with the bank take place in person, while 85% handle most of their banking online—via an app (50%) or a website (35%). Peter Ekdahl sees room for better use of new technology in the customer interface: “So far, banks have not succeeded in offering chat and voice services that meet customers’ needs. Less than 20% of customers are satisfied with their experience of voice services, and just over 40% are satisfied with online services, compared to nearly 70% satisfied users for mobile apps and websites.”
Digital Life Index is an ongoing research initiative commissioned by Publicis Sapient to understand consumer attitudes, behaviors, and perspectives regarding digital services across various industries. This year’s edition focuses on retail, health, and financial services. The survey was conducted in May and June 2021 with 9,300 participants across 12 markets, including 700 from Sweden.
More information: thedigitallifeindex.publicissapient.com
Publicis Sapient partners with global organizations to help them create and maintain a competitive advantage in an increasingly digital world. Publicis Sapient is the digital transformation hub of Publicis Groupe, with 20,000 employees and over 50 offices worldwide.
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