PayPal is over a decade old, and over that period, financial institutions like banks – and consumers – have taken varied strides toward digital transactions. We have had online banking, mobile banking and app-based transactions, and now a clutch of companies such as Square have emerged with new-generation technologies and alternative transactions.
So where do Australian consumers and financial institutions stand in the new, and fast emerging, landscape?
Effective Measure, a Melbourne online measurement firm specialising in finance, says Australians are on par with their global counterparts. If that is the positive finding, the other major finding is the equivalent of the glass half-full: While Australian financial institutions have rolled out a variety of digital features, there is significant opportunity for “deeper and more defined customer engagement.”
It’s all about tech consumerisation
“The deployment of financial apps across devices is not just about enhancing transactional functions but also about developing deeper engagement with customers,” said Effective Measure Regional MD – Oceania, Dinesh Arasaratnam. “By shifting the customer relationship to a personal device, banks can provide a service, build brand awareness and get to know the needs of the customer more acutely and tailor future services in that personalised basis. The consumerisation of technology and data has changed the game and the personalisation of services puts the customer’s needs on centre-stage.”
In its “Australian Finance: Mobility & Access Report,” Effective Measure suggests key areas of opportunity for financial brands. Specifically, it lists data wrangling, demographic analysis and pairing services with targeted users as foundations for enhanced usage and new service integration.
Targeting is everything
“Targeted demographic data research is key to improved customer relationships,” according to Arasaratnam, who also cited specific opportunities.
“The rise of debit card services in the youth demographic can be matched to a higher engagement in this age group for digitally based transaction methods. This is a generation that has grown up with PayPal and virtual currencies and is very comfortable with digital transactions,” he said.
On the other hand, tor the older users who prefer credit cards, the research suggests more education of newer services is required, Arasaratnam added.
The Effective Measure “Australian Finance: Mobility & Access Report,” is based on a survey of Australian consumers via the company’s network. The survey was carried out last December.