According to the global Consumer Banking PACE Index released today by FIS, (NYSE: FIS), a global leader in financial services technology, Australian banks have been ranked sixth out of 10 nations surveyed in a global assessment of bank customers’ views of their financial institutions. The results of the survey indicate that Australian consumers put financial safety, service, product simplicity and customisation ahead of being ‘leading edge’. Additionally, Australians want their banks to better reward customers for their loyalty, and the needs of the millennial generation for fast, digital banking solutions requires greater attention from banks.

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(Graphic: Business Wire)

(Graphic: Business Wire)

The online survey of approximately 1,000 Australians with bank accounts identifies that customers expect banks to keep their money safe and identity secure. Consumers also indicated they want banks to set transparent pricing and terms with no hidden costs and to stay true to promises made to them. Furthermore, products and services offered by banks should be easily understood by customers.

Richard Palmer, Managing Director, Banking & Payments, Australasia, FIS, said: “The findings in our PACE Index report strongly signal that Australians want safe and simple banking solutions that help them in their day-to-day lives. Customer priorities are the safety of their money, ease of product use and customised products that address their individual needs.

“The Index findings show that for banks to attract and retain the growing millennial market, they must apply their strong innovation focus to anticipating consumers’ life events and communicating their ability to help them meet their life aspirations.”

Snapshot of the Australian Report

  • Australian bank customers assign greater weight to safety, fairness and security than their global counterparts. Fairness of charges and fees falls short of consumer expectations. Australians also perceive their banking providers perform below their standards for reliability and transparency.
  • Customers rank simplicity of product use higher than leading-edge products. Though banks perform to expectation in these areas, they lag in providing a customised product offering.
  • Almost 25% of Gen X customers and four in 10 millennials find it difficult to make time to visit a bank branch, putting connectivity via technology at a premium.
  • Millennials face challenges in obtaining information on better loan deals and fulfilling their information needs digitally. However, the major pain point of millennials and Gen X customers occurs with sourcing and confirming a loan quickly enough to take advantage of an opportunity.
  • 90% of respondents who use a personal financial management app are using their primary financial institution’s app. However, outside of millennials adoption of these apps remains limited.
  • The vast majority – 78 per cent – of banked consumers have no form of financial advisor, though there is appetite for their bank to support them in achieving their important financial and life goals.
  • More than 60% of respondents anticipate at least one life event with financial implications in the next 36 months. Almost 75% of millennials anticipate an event with some 34% looking at buying a house and 36% considering purchasing a car. Thirty per cent of millennials are also considering investment for the future.

Key Insights for Australian Banks

  • Australian consumers continue to place their primary financial provider first when considering life events that have a financial requirement.
  • The millennial demographic represents the future of banking and nearly 22% of millennial respondents will consider other providers than their primary provider for financing life events. A shift to digital with easy to use products and services, particularly mobile and tablet channels, is critical to respond to the demand of this population.
  • Banks can capitalize on existing customer loyalty by meeting the aspiration and advice needs with trusted support in helping to meet their financial goals.

About FIS

FIS is a global leader in financial services technology, with a focus on retail and institutional banking, payments, asset and wealth management, risk and compliance, consulting, and outsourcing solutions. Through the depth and breadth of our solutions portfolio, global capabilities and domain expertise, FIS serves more than 20,000 clients in over 130 countries. Headquartered in Jacksonville, Fla., FIS employs more than 55,000 people worldwide and holds leadership positions in payment processing, financial software and banking solutions. Providing software, services and outsourcing of the technology that empowers the financial world, FIS is a Fortune 500 company and is a member of Standard & Poor’s 500® Index. For more information about FIS, visit www.fisglobal.com.

About the FIS Consumer Banking PACE Index

The FIS Consumer Banking PACE (Performance Against Customer Expectations) Index tracks how financial institutions are performing against customer expectations in 10 countries. The Index, which began in 2015 and survey 10,000 bank customers, reveals insights that help banks navigate growth opportunities in today’s disrupted environment and adapt to changing expectations from consumers, particularly maturing millennials. PACE 2016 Index Ranking by scores: (1) Germany, (2) United States, (3) Switzerland, (4) Canada, (5) United Kingdom, (6) Australia, (7) Poland, (8) Philippines, (9) India and (10) Brazil.

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