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Banks and lending institutions are spending billions on IT and looking to bring banking into the 21st century, but a new report suggests around half their clients don’t want a bar of it.
Roy Morgan Research has completed a major study of technology and how Australians adapt to and use it, with some startling results about the use of customer technology in the banking area.
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The report found that different banks appeal to different technology segments, with HSBC flaunting the highest proportion of ‘early adopters’ (27.9 per cent) followed by Citi (20.3 per cent).
At the other end of the scale, ‘technophobes’ and ‘technology traditionalists’ have proved they can’t be ignored since they make up a large proportion of banking customers.
The report found that customers who lean towards building societies and credit unions have the highest proportion of ‘technophobes’ and ‘technology traditionalists’, at 50.6 per cent, followed by NAB and Westpac (both with 42.4 per cent), CBA (41.7 per cent) and ANZ (39.9 per cent).
Meanwhile, more than a quarter of HSBC customers are deemed ‘technophobes’.
Norman Morris, industry communications director with Roy Morgan Research said the fast pace of growth is leaving many Australians behind.
“With the rapid increase in mobile technology, financial institutions have long been focusing on introducing mobile banking applications, thus making it easier for customers to do their banking on the go.
“But ‘technology traditionalists’ and ‘technophobes’ hold conservative values, are wary of change and are usually the last to take up new technologies.
“‘Technology traditionalists’ are not great lovers of technology and really only take it up once it becomes mainstream. ‘Technophobes’ will only adopt technology when they are forced to, due to disinterest and lack of needing technology in order to fulfil their lives.
“Institutions need to find effective ways to engage with this group so as to demonstrate the value and use technology can bring to their lives.
“Financial institutions such as building societies and credit unions need to pay particular attention to engage the late majority as they constitute more than 50 per cent of their customer base.”
