Cisco Study

In Brazil and Mexico, Banks Can Close a 'Value Gap' Between What Customers Expect and What Banks Are Delivering

MIAMI, FL--(Marketwired - Feb 19, 2015) - Cisco (NASDAQ: CSCO)

• Banks Risk Losing Business to Customer Disconnect: 84 percent of Brazilian bank customers and 93 percent of Mexican bank customers would trust a non-traditional banking institution for banking products
• Customers Want High-Value Services -- Anytime, Anywhere: 93 percent of Brazilian bank customers and 95 percent of Mexican bank customers would move their money for Internet of Everything (IoE)-enabled banking experiences
• Banks Can Close the 'Value Gap': With digital transformation, a Brazilian bank can experience a 7.4 percent increase in profitability; Mexican banks can capture a 10.9 percent increase.

Cisco today announced the Brazil and Mexico findings from a new global study of more than 7,200 banking customers in 12 countries. The study reveals a "value gap" between the expectations of digital consumers and what banks are currently delivering. Customers are getting less value from their banks than they expect, and trust and brand equity have eroded. New disruptors are exploiting the value gap between banks and their customers. To help banks regain customer relevance, Cisco tested five IoE-enabled banking concepts and learned that by focusing on advice and mobile solutions, banks have an immediate opportunity to re-engage customers and experience profitability gains.

Despite their vast stores of customer and transaction data, many banks have failed to turn that data into actionable customer insight to provide contextual and convenient service. We tested consumer interest in five banking concepts enabled by the Internet of Everything (IoE) that closely align to banks' core strengths: their physical branches, financial expertise, and rich customer data. The test concepts focus on ways to deliver better advice (virtual financial advice, virtual mortgage advice, automated investment advice) and more valuable mobile services (branch recognition, mobile payments).