Bank Millennium : 5 trends of daily banking in Poland in 2017

What has changed in the approach of customers to banks and what will their expectations be in the nearest future? Banks willingly reach for new technologies and are not afraid of innovative solutions. So what trends will be now the key drivers of change in this sector?

What banks will be like in a few years from now will be decided not only by the dynamic development of new technologies but also by the human factor. In both areas five trends in particular will be crucial for the industry, namely:

1.Mobile banking

The trend has been around in banking for some years now and is becoming stronger. So will banking definitively move to smartphone and tablet screens? Customers increasingly appreciate convenience of access to their account and banking services anywhere and anytime. - At end of Q3 2016 there were close to 7.1 million Poles using mobile banking. In Bank Millennium in 2016 alone the number of mobile users increased 50%. All this indicates that 2017 will be a year of m-banking and of development of bank app functionalities. Customers expect banks to accompany them in a natural way in life and to follow their needs. This is why we area slowly headed towards 'banking supermarkets', which offer access to more services, not necessarily related to banking - Wojciech Rybak, Member of the Management Board of Bank Millennium, responsible for retail banking said. The bank's app can already be used to buy city transport tickets, to pay for car parking or to order a taxi. Since recently customers of Bank Millennium can also by motor insurance via the app, using Aztec graphic code scanning from the vehicle's registration certificate.

2. Relationship

- Although mobile banking is growing in strength, it will not replace a good relationship between the bank and customer. This also applies to the youngest generation of customers. According to the 'Millennium generation in the world of finance and new technologies against the backdrop of generation X and Z' survey, most young Poles consider traditional banking, beside e-banking, to be one of the most preferred forms of contact with the bank. This percentage is as much as 78% among people aged 16-40 (e-banking is used by 80%) - Wojciech Rybak explained. Electronic banking is most often used to check the account balance, to send a transfer or to set up a deposit; however it is to a branch that people in Poland direct their steps when they want a loan. Customers still prefer a face-to-face meeting with a bank advisor when they have to do with more sophisticated banking products and personal service together with a wide network of bank advisors is an increasingly important factor in establishing long-term relationships with a bank. Thus in the near future emphasis will be put on customer relationships. What will matter in bank branches will be politeness, commitment and skills of advisors as well as defining the needs of customers properly.

3. The power of referrals

A personalised customer approach and building a direct relationship with him will lead to another trend, which can be seen among young people in Poland. Customers, especially from generation X and Z, already now when taking decisions, choose products and solutions recommended to them by friends or family and also readily share their opinion about the products and services they have selected. More than 60% of customers of Bank Millennium are persons who decided to choose this bank because it was recommended to them by a friend or relative.

4. Biometric identification and new ways of logging on

In m-banking increasingly advanced solutions appear, such as logging on or authorising payments with a fingerprint or using voice commands. Biometrics may provide effective support in upgrading bank branches and transforming them into fully automated points of service. Customers, increasingly accustomed to lightning-speed service and easy access to service via the internet, will thus gain an additional channel of access to banking products without the need to wait in a queue. It is worth adding that most consumers perceive biometrics as a safe and effective security feature of bank transactions. Thanks to it using services offered by financial institutions will become faster; such inconveniences will be eliminated as the need to remember PIN numbers, passwords or to carry identity documents around. - Bank Millennium's research shows that particularly the youngest group of customers is interested in these innovative solutions. Logging on to the account with use of a fingerprint is more popular among the youngest respondents (aged 16-19) and is as much as 50%. A fingerprint is one of the most interesting logon forms introduced i.a. in Bank Millennium in 2016; however it will certainly not be the only one in the coming years - Wojciech Rybak explained.

5. Omnichannel

The future is also about development of the omnichannel approach, which assumes complete integration of distribution and customer communication channels. Looking at harmonious cooperation between all human senses a system was devised, which seamlessly integrates all banking channels available to the Customer. - In the context of changing habits customers today expect full freedom to choose a channel of their preference. Banks, which will provide the highest level of omnichannel service and will be capable of focusing on customers' needs, will not only gain their greater satisfaction, but will also increase cross-selling capabilities - Wojciech Rybak said.