Banking alerts leave customers unsatisfied
2010-02-24
The movement of financial services to new media like online management systems and mobile phones has increased the demand for consistent, real-time customer alerts. However, in spite of widespread attempts to implement these services and promote customer retention, analysis shows that consumers are not getting what they want.

Javelin Strategy and Research recently released the details of a study based on 10,000 consumer responses collected over the course of seven years, mystery-shop observation of leading banks and in-depth interviews with technology vendors. The results suggest that though customers want real-time alerts, the way they are typically deployed is often a source of frustration.

Customers report that alerts are not only difficult to set up, they are difficult to personalize based on customer preferences. They find that there is inadequate information on their use available. Alerts as they tend to arrive seem to lack integration with other services, as well as often not including enough actionable response capabilities. Further, alerts that address fraud risks are not intensive enough, and alerts in general are sometimes delayed.

"Alerts are a top consumer and bank technology opportunity, yet today's solutions generally fail to deliver the convenience and control that consumers require, especially in this challenged economy," says Javelin president James Van Dyke. He adds that "consumers and small businesses will choose the banks, card issuers and other institutions that are the first to offer alerts that are more timely, useful and habit-forming."

Banks wondering how to prevent customer attrition may find that this study resonates. Recent information from Data Innovation found that 70 percent of smartphone users are conducting financial activity on their phones, a trend suggests a growing need for a viable alert system.

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