One in four of APAC consumers on the hunt for new finserv providers

Qualtrics-Financial-Services-APAC-Report (1)

Singapore – As the financial services industry in the Asia-Pacific region has reached maturity and high adaptability, around 22% of consumers in the region are stating that they eye switch financial service providers, with 48% of the respondents saying that they are inclined to use digital banks instead, new data from experience management (XM) company Qualtrics shows.

According to their latest report, 25% of those aged under 40 and 21% of 41-50 year olds say they plan to change who they bank with over the next year. In contrast, just 14% of people aged over 50 plan to switch banking providers. Similar results are seen in insurance, as 29% of people aged under 40 are likely to switch, compared to 27% of 41-50 year olds with20% of those aged over 50.

Qualtrics notes that the product and customer experience consistently ranked in the top reasons driving trust in providers, and the reasons for choosing digital-only offerings. Alongside competitive rates and brand perception, the quality of the mobile app and website, products, and customer service are also some of the top factors driving trust in the industry. 

In addition, consumers said they were opting for digital-only offerings for better customer experience, lower fees and charges, flexible products, higher returns, and more personalization.

“While Asia Pacific is a hotbed of innovation and opportunity for financial service providers – from traditional players through to emerging fintechs – what’s clear from our research is that share of wallet is dependent on the quality of the physical and digital experiences provided. Consumers are actively hunting for products, services, and engagements tailored for their rapidly changing needs and preferences,” said Harish Agarwal, head of customer experience solutions and strategy for Qualtrics in Southeast Asia, India, and Greater China.

He added that this means organizations that are able to quickly listen, understand, and act on customer feedback will have a significant advantage.

The report also stated that despite two-thirds of respondents saying they were satisfied with their banking provider (68% of respondents) and health/life insurer (65% of respondents), a significant portion of consumers are still looking to switch, as 22% are planning to change who they bank with, and 27% are looking to change their insurance provider.

Regarding service feedback, around 69% of respondents said it was very important their provider captures ongoing feedback from them regarding products and services – and that most especially, feedback is acted on. Meanwhile, 48% of respondents said it was unlikely they’d purchase from a provider in the future if the organization failed to respond to their feedback.

Consumers are also moving away from traditional providers when it comes to investing, with 73% saying they adopted digital channels to meet their needs, such as online brokers, fintech apps, and digital wealth management solutions. Younger consumers are consistently the most willing to engage non-traditional providers.

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