Digital Adoption Overview: Why Convenience Isn't Enough
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Banks have invested $20 billion in new digital products but customer adoption remains low. While awareness of fintech has increased from 40% to 85%, only 33% actually use fintech products. Convenience alone is not enough to drive adoption. Both customers and employees need an incentive to change behaviors. For customers, empathy and incentives are needed to convince them to change from traditional methods. For employees, current training is ineffective and boring so future programs need to motivate and incentivize employees to recommend digital products to customers in order to boost adoption rates.
Digital Adoption Overview: Why Convenience Isn't Enough
- 1. DIGITAL ADOPTION overview WHY “CONVENIENCE” ISN’T ENOUGH launchfire.com
- 2. By 2020, banks will have invested nearly $20 billion on new digital products and services. But how successful are they at getting customers to use it? Most digital adoption strategies are two-fold, involving both consumer facing and internal campaigns. But both sides are suffering from a similar problem: a lack of empathy. There’s a common belief that awareness campaigns will change customer and employee behaviour. But that’s not actually the case. Both employees and customers need a reason to change. A reason that many adoption campaigns are currently lacking.
- 3. launchfire.com Consumers: Awareness Doesn’t Drive Adoption 2015 2017 Back in 2015, 40% of consumers didn’t know fintech existed. But that number has dropped to just 15% in 2017. And despite 85% of Americans being aware of fintech products, only 33% are using them. Clearly, awareness isn’t the issue. People know about fintech. They know it’s convenient. And yet they still aren’t adopting it. Why? Because while new tech is convenient, change isn’t. The early adopters of fintech are already using it. Now you have to convince the masses. The people who are comfortable with the way they’ve always done things. The people who have no reason to change. To get them to go digital, you need to provide an incentive. A reason to change. Great tech isn’t enough. You also need empathy. Was not aware fintech existed 40% 15% Prefer to use a traditional financial services provider 22% 13% “ “85%of Americans know about fintech products but only 33%have adopted them
- 4. launchfire.com Employees: Key to Transformation, but not motivated to change Top Challenges for Digital Transformation Initiatives 42% 54% Front-line staff represent an opportunity to drive adoption with regular users of branch and phone channels. But most front-line staff have no incentive to learn about or promote digital products. They don’t interact with digital properties regularly, and (until now) haven’t needed to. This lack of knowledge is a major problem for organizations’ transformation efforts. And current efforts to educate staff are falling short: 42% of employees describe the training they get as “boring and useless.” To overcome staff’s apathy towards change, future programs need to motivate employees. They need to make learning experiences fun and engaging. And they need to provide an incentive for recommending digital products to customers. 30.5% general cultural issues 31.4% low digital literacy among employees & leadership 30.1% lack of staff resources 23.7% human barriers (politics, ego, sabotaging, fear) of employees describe the training they receive as “boring” and “useless” of organizations agreed that the digital talent gap is hampering their digital transformation programs
- 5. Conclusion Change isn’t convenient. We need to give both consumers and employees a reason to care; a reason to change how they’ve always done things. We have to approach digital adoption from a human perspective. Or we’ll end up with a ton of “great” tech that no one uses. Sources: 1 - EY FinTech Adoption Index 2017, EY. 2017. <http://www.ey.com/Publication/vwLUAssets/ey-fintech-adoption-index-2017/$FILE/ey-fintech-adoption-index-2017.pdf> 2 - Consumers and Mobile Financial Services 2016, US Federal Reserve Board. 2016. <https://www.federalreserve.gov/econresdata/consumers-and-mobile-financial-services-report-201603.pdf> 3 - 2017 State of Digital Transformation, Altimeter. 2017. <http://www2.prophet.com/2017-state-digital-transformation> 4 - The Digital Talent Gap, Capgemini & LinkedIN. 2017. <https://www.capgemini.com/wp-content/uploads/2017/10/report_the-digital-talent-gap_final.pdf> boost digital adoption for your bank 613-728-0868 let’s chat