Nearly 2.2 million Kiwis are using internet banking each month. It saves time and it’s convenient, remember the time spent waiting in those queues? Now we set time aside to pay the bills and manage our finances online and from the comfort of our own homes, at work or even out and about through a mobile device. In fact, on average we each spent 43 minutes online engaged with banking or finance sites in October, visiting at least twice a week.
ANZ has the highest unique audience number of 750,000 people, reaching more than one fifth of the total New Zealand online population. Westpac and Kiwibank are neck and neck with 562,000 and 555,000 visitors respectively while ASB has 435,000 and BNZ following with 331,000.
Around three in four (73%) New Zealanders say they are happy with their main bank. Our research shows that consumers are loyal to financial institutions for banking/investing, with 81 percent saying they are either completely loyal and would not switch or mostly loyal and unlikely to switch without significant incentive. Financial institutions came out on top against the other 15 categories measured for loyalty levels including fast moving consumer goods, technology products and retail establishments.
It’s interesting then, that in delving further into our online behaviour we see a large amount of crossover in site visitation. The relatively high audience overlap between brands indicates that people are either have accounts with more than one bank or are actively searching for information on competitor sites.
So, what’s going to push customers to make the switch? According to our loyalty survey, 62 percent of New Zealand respondents said getting a better price would encourage them to switch brands, followed by better quality (20%), a better service agreement (6%), better selection (6%) and better features (6%). While good interest rates may initially offer consumers enough motivation to change allegiance to a new bank, it won’t keep consumers for long if the service doesn’t deliver on its promise.
And what is going to make customers stay? It’s all about having a strong online presence with the consumer at the focus of the experience. This should include factors such as intuitive usability, the ability to complete most banking transactions online and embracing innovation in the mobile and social media space. You need to be where your customers are, and ensure they can complete tasks conveniently wherever they may be.