Press Release, 6 July 2021

89% of GCC consumers will
opt for digital banking services

over visiting a physical branch post Covid-19

77% of respondents in the GCC access digital banking services at least once a week 

44% are willing to switch to a different bank due to poor customer relations 

31% perceive their bank’s current offering of access to online banking services as weak

  • Backbase Marketing
  • July 5, 2021

Dubai, July 6, 2021Consumer appetite for digital banking services continues to grow in the countries of the Gulf Cooperation Council (GCC), accelerated further by the COVID-19 pandemic, according to a new survey conducted by Backbase with YouGov.

Eighty-nine percent of respondents to the survey said that they are now more likely to opt for digital banking services rather than make a physical visit to a bank branch, with consumers saying they prefer digital self-service banking solutions delivered with the same convenience as their ecommerce, entertainment, and transport solutions.

Movement restrictions or closures of bank branches in the early days of the pandemic forced consumers online, and banks responded by rapidly shifting products and services to digital platforms. The research showed that 77% of respondents say that they use digital banking services at least once a week, and 30% uses services once a day or more.

The sudden increase in digital adoption has dramatically advanced the digital transformation agendas for many banks in the region, with banking leaders recognizing online banking services as becoming critical to increasing customer retention and growing revenue streams through personalized services.  Consumer expectations from digital banking has shifted from just day-to-day banking services and transactions, to also include more complex interactions, such as remote account openings or subscriptions to new products or services such as getting a loan or subscribing to insurance. However, 31% of respondents say that their bank is weak when it comes to offering seamless access to online banking services, highlighting an area where banks need to step up their performance.

According to Backbase, many banks have relied on rolling out standalone applications and self-contained systems to add new functions and services to their online banking offerings, creating fragmented systems that don’t deliver a good experience to customers. With further digital transformation ahead, financial institutions need to ensure that they have the right platform to manage future expansion.

Matthijs Eijpe, Regional Vice President Sales EMEA at Backbase said:

“As the pandemic recedes, banks have the opportunity to provide enhanced customer engagement online, which will pave the way for physical branches to only deliver more complex, high-value activities. To make sure that they can capitalize on changing customer behavior, banks will need to break free from siloed technology architecture and bring engagement to the forefront of their digital operations. By adopting the single platform approach to technology that other industries have already mastered, financial institutions can be leaner and more flexible, with the ability to instantly execute new digital services while also providing enhanced customer support,”

Customer experience differentiates successful digital financial services from failures with 44% of respondents citing poor customer relations as a key influencing factor in making the decision to switch to a different bank. “Collaboration with a partner that accelerates the shift to engagement banking and manages change across the entire digital journey enables financial institutions to focus on providing a high-quality service to customers and members. Our state-of-the-art digital banking software solution unifies data and functionality from traditional core systems and new fintech players into a seamless, digital customer experience,”continued Matthijs Eijpe.

About Backbase

Backbase is on a mission to transform the broken banking system, so financial institutions don’t just interact—they engage—with the people they serve.

That’s made possible with the Backbase Engagement Banking Platform—powering all lines of business on a single platform, including Retail, SME & Corporate and Wealth Management. From digital sales to everyday banking, the platform’s entire design focuses on a seamless and captivating experience for both customers and employees.

Industry analysts Forrester, Ovum and Celent continuously recognise Backbase’s front-runner position, and over 120 large financials around the world are powered by the Backbase Engagement Banking Platform—including AIB, Barclays, Banamex, Bank of the Philippine Islands, BNP Paribas, Bremer Bank, Citibank, Citizens Bank, CheBanca!, Discovery Bank, Greater Bank, HDFC, IDFC First, KeyBank, Lloyds Banking Group, Metrobank, Navy Federal Credit Union, PostFinance, RBC, Société Générale, TPBank, Vantage Bank Texas, Westpac and Wildfire Credit Union.

Media Contact

If you have any questions on Backbase or want to schedule an interview, please contact:

Backbase Marketing
Jacob Bontiusplaats 9
1018 LL, Amsterdam
The Netherlands
[email protected]
+31 20 465 88 88

 

Get our latest research insights and weekly updates. Sign up now
Cookies on Backbase
We and third-parties use cookies on our website. We use cookies for statistical, preferences and marketing purposes. Google Analytics cookies are anonymized. Your preference can be changed by clicking 'Change options'. By clicking 'Accept' you accept the use of all cookies as described in our privacy-statement.
Necessary
Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies.
Preferences
Preference cookies enable a website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in.
Statistics
Statistic cookies help website owners to understand how visitors interact with websites by collecting and reporting information anonymously.
Marketing
Marketing cookies are used to track visitors across websites. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers.