Business Strategy: Digital Services Impact on Customer Retention and Acquisition

This IDC Financial Insights report goes through the current level of satisfaction across delivery channels, showing that mobile banking has lots of room for improvement while branch is still king. The adoption of digital services continues to grow, and financial institutions recognize the need to invest in this channel. While there is currently little appetite for large transformation projects, the ROI for digital services should appeal to most CIOs and CFOs. Cost savings, improved efficiency, and strong security all play to the strengths of digital services. As financial institutions' timelines for recognizing payback for their investments continue to shrink, IDC Financial Insights feels that cost/benefit analysis around digital services will be favorable and worthy of budget dollars.

According to Marc DeCastro, research manager, Consumer Banking, IDC Financial Insights, "Driving customers to low-cost delivery channels while maintaining favorable satisfaction levels is just good business. Satisfied customers stay with their financial institution during both good times and bad times."