Indians most open to switching to digital-only financial provider

Indian consumers lead in openness to consider switching to a digital-only financial provider and consumers in Asia Pacific are one of the most advanced when it comes to digital engagement with financial services, with 73 per cent of them believing they should be able to accomplish any financial task on a mobile device, said a new report on Wednesday.

Consumers prefer to interact with their financial service providers on digital channels especially in mobile-first markets like China, India, Thailand, and Indonesia, said market research firm Forrester Research.

“Consumers are more likely to engage with firms that prioritise helping them improve their financial well-being,” Dane Anderson, Vice President, Research Director and Region Manager, Forrester, said in a statement.

He said, “We expect that customers will dynamically deconstruct their personal financial services ecosystems and reassemble them with newer and better players. Traditional institutions have several advantages but will be left behind if they do not transform faster to meet the challenge.”

According to the market research firm, many customers trust payment firms and technology firms over traditional financial services providers to help them better manage their finances.

Global technology giants, payment providers, e-commerce players, and even ride-sharing leaders are already threatening established firms by offering simple, convenient, and more personalised digital experiences.

While banks lead in consumers’ trust to act in the best interest of their financial well-being, a surprising cast of digital characters is not far behind.

In India, Google beat out banks as the most trusted company to act in their best financial interests whereas in China, Alibaba and WeChat are slightly behind banks, and across all countries, insurers break into the top three except in just two countries — Hong Kong and Malaysia.