Malaysian Banking Customers use Facebook to Disclose Their Views, according to New Research from SunGard and Celent

SunGard Launches New Bank Readiness Index To Help Banks Address Customer Needs

Kuala Lumpur, 19 June, 2012 – New research undertaken by Celent on behalf of SunGard has found that banks in some of the world’s fastest-growing emerging markets are tapping into digital space for better engagement with their customers. Malaysia, which was one of the markets that was covered in this research, has scored the highest in the new Bank Readiness Index (BRI) within South East Asia.

The research, which consisted of two surveys* of more than 1,000 consumers and 100 banks in eight countries across the Middle East and South East Asia, investigated how prepared banks are to respond to the needs of their retail customers. Building on the research, Celent has developed the Bank Readiness Index (BRI) on behalf of SunGard, an online tool to help banks benchmark their ability to cater to customer expectations. The SunGard BRI uses 17 parameters and aggregates banks’ capabilities across four metrics, including multi-channel and customer metrics.

Key findings of the research revealed:

Consumers are talking on Facebook, but banks are not “listening”: 90% of consumers surveyed use Facebook at least weekly, with approximately half of respondents confirming they would use it to share banking experiences. While 76% of banks agree that innovation in mobility and digital technology is a key opportunity to personalise offerings, only 21% have a fully developed social media strategy and just 13% believe they are sing social media to its fullest potential. Only 38% monitor social media.

Banks lag customer demand for a multichannel experience: Most consumers are prolific online and mobile users yet many of the surveyed banks do not offer a fully integrated multi-channel experience. The research revealed that smartphone ownership exceeds traditional cell phones in South East Asia at 54%. While 63% of banks in Asia now offering native apps (i.e. built for Android or iPhone), only 34% of banks in Asia currently have tablets offerings. Malaysia achieved a high score in mobility, including native mobile and tablet apps. However, most mobile banking offerings are still basic.

Consumer enthusiasm towards their bank is modest at best: Less than 50% of respondents in the Middle East felt their bank understands their needs well, with just over half agreeing with this statement in Asia. Barely half of consumers perceived their bank to be a technology innovator. In South East Asia, most consumers’ first choice to manage their personal finances is through bank’s website, however, only 28% of bank respondents have a 360 degree customer view across products and delivery channels. Customer analytics and relationship pricing are similarly lacking.

Commenting on the research, Bob Meara, senior analyst, Celent, said: “Consumers in emerging markets feel that banks are not doing enough to understand their needs. While consumer trust is evident, banks need to capitalise on this opportunity to get a better handle on changing customer habits and engagement strategies in order to help maintain customer loyalty in the future.”

Dean Young, vice president of product management for SunGard’s banking business, said: “Increasingly, online channels present consumers with more freedom to ‘shop around’. Banks need the ability to understand their customers’ needs in order to create a better user experience, which, in turn, will help to capitalise on cross-sell opportunities, build customer loyalty and improve profitability. The SunGard Bank Readiness Index will help banks in emerging markets gain a true picture of just how ready and capable they are to meet customer demands and develop offerings to meet their customers’ needs and preferences.”