Trust is key in winning back customers

wooden figures

A new survey conducted by global management consultancy Oliver Wyman has revealed that a clear majority of fintech customers would be happy to use a traditional bank or insurer if they offered similar propositions and pricing as neobank and insurtech rivals

The survey tallied up the views of 5,000 European customers (from the UK, Spain, France, Germany and Italy) to gauge the level of customer trust in traditional banks and insurers, and ascertain whether these traditional companies have the oportunity to win back customers from their new and technically-orientated competitors.

In Germany and the UK, customers are more trusting of traditional banks (at 71 and 69 per cent respectively) than the other European countries included in the survey, although these are still moderately high.

Simon Low, Partner and Head of EMEA, Retail and Business Banking at Oliver Wyman, commented: “Our survey reveals that traditional banks are well placed to recapture customers who have switched to neo-providers. By capitalising on high levels of consumer trust, they have the opportunity to gain market share by developing the right digital offering.”

It transpired that Italians would be the most likely to move back to a traditional bank offering comparable proposition and pricing (at 80 per cent), while the French would be the least likely (at 58 per cent). In contrast, Spaniards and the French most prefer traditional insurers to neo-insurers when they have the same proposition and pricing (66 per cent), followed by Britons (62 per cent), Germans (56 per cent) and lastly Italians (53 per cent).

“Flexibility, price and speed of obtaining insurance coverage are the main reasons customers consider new digital insurance propositions, and our survey shows that many customers remain underinsured,” said Insurance Partner Fady Khayatt. “However, insurtech propositions to date remain relatively niche and traditional insurers are well placed to provide new services to retain and capture customers who are interested in new propositions.”