Cisco Study

In Brazil and Mexico, Banks Can Close a 'Value Gap' Between What Customers Expect and What Banks Are Delivering - Seite 2

By implementing these concepts in concert with fully digitizing business processes, Cisco found that a typical bank in Brazil with $5 billion in annual revenues has the opportunity to gain a $254 million annual profit increase, equivalent to a 7.4 percent rise in profits. For a typical bank in Mexico with $5 billion in annual revenues there is an opportunity to gain a $372 million annual profit increase, equivalent to a 10.9 percent rise in profits.

Financial services institutions have an enormous opportunity for growth when they become just as digitized as their customers, whether in the branch or far beyond. By adopting scalable IoE concepts, banks create valuable interactions with more customers, at more times and places, than ever before.

Banks Are Not Meeting the Needs of Their Digital Customers

• In Brazil, 52 percent of customers believe their primary bank does not understand them as individuals, compared with 49 percent in Mexico and 43 percent globally.
• In Brazil, 27 percent said they would be likely to go outside of their primary bank to open their next account or service, compared with 28 percent in Mexico and 24 percent globally.
• In Brazil, 56 percent of respondents "go it alone" with their finances, without any assistance from a professional or bank. In Mexico, that number increases to 59 percent.
• Of those who do work with an advisor, in Brazil more than one in four (26 percent) felt that the advice was ineffective. In Mexico nearly a third (32 percent) felt the advice was ineffective.
• Eighty-four percent of Brazilian respondents would trust a non-traditional banking institution for banking products, compared with 93 percent in Mexico and 80 percent globally.
• In Brazil, PayPal topped the list of trusted non-banks, followed by Google and Apple. For Mexico the most trusted non-banks included PayPal, American Express and micro-financing banks.

Customers Will Choose Banks with IoE-Enabled Offerings That Provide High Quality, Contextual Advice, and Convenient, Mobile Capabilities: