Retail banking distribution is an increasingly digital proposition, with customers accessing more services on their smartphones and desktops—even in countries that are not considered digitally advanced. According to McKinsey’s 2016 Retail Banking Multichannel Survey of 20,000 customers in 10 countries, and the Finalta Digital and Multichannel Survey, banking customers are also increasingly adopting web-based chat sessions with advisors and video-based remote advisory services. However, despite the growing prevalence of digital distribution in banking, no market is fully digital—for the next three to five years the human touch will remain important for 30 to 50 percent of consumers in most markets.
Our new research shows that banks are adapting their distribution models at very different paces. In many cases, consumers appear to be ahead of banks in terms of their willingness to use new channels. We see tremendous white space for banks to innovate on network shape, new formats, refreshed customer conversations, remote advisory, and digital sales and service. And, in fact, there is emerging evidence that distribution innovators are pulling away from the pack.
In this paper we examine the shifts in consumer preference revealed by our multichannel survey, which also serves as a benchmark to measure banks’ digital and multichannel progress. We then outline four battles banks must win if they are to succeed in an era of customer-led distribution.
