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How to Retain Customers and Grow Deposits in a Digital World
PRESENTED BY SPONSORED BY
Performance monitoring helps improve consumers’ digital experience and can directly impact business outcomes
1How to Retain Customers and Grow Deposits in a Digital World
Consumers continue to embrace all things digital. The majority (81%) of U.S. consumers are online
every day, and more than one-quarter (28%) say that they are online almost constantly.1 This digital
lifestyle has implications for all industries—including financial services. By 2021, 58% of consumers will
bank using mobile devices, predicts Javelin Strategy.2 And 115.6 million consumers will use mobile
banking at least once per month, says eMarketer.3
It’s natural for consumers, impressed by fast and convenient one-click shopping, image-rich websites
and mobile apps, and personalized offers from digital retail giants to compare their digital banking
experience with their shopping experiences. Unfortunately, the digital banking experience often falls
short of expectations. While most (80%) consumers rate shopping on a mobile device as easy, almost
one-fourth (24%) of consumers say that mobile banking is not easy.4
In addition to the impact of the Amazon shopping effect on consumer
expectations, financial institutions are also feeling pressure from the
increasing number of fintechs disrupting areas of finance that were
traditionally the domain of banks. Non-banks including Stripe and
Kabbage are offering financial products to consumers in areas such as
payments, lending, and personal finance. Fintechs are even partnering with issuing banks to offer
checking account-like products.
The reality is that these digital disrupters often offer more engaging digital experiences with web and
mobile app design that puts the customer first—in stark contrast to financial institutions’ more utilitarian
digital offerings.
Financial institutions have always relied on the advantage of consumer trust to compete with non-
banks. But while it’s true that consumers still trust financial institutions to keep their money safe, they
no longer have a stranglehold on consumers’ trust. According to Bain & Company, 29% of consumers
trust a technology company more than they trust their primary bank.5 Sixty percent of consumers say
that they are willing to try a financial product from a technology firm. For consumers under age 35, the
percentage increases to 73%.6
Consumers are 1.5 times more likely to open an account based on experience rather than interest rate.
2How to Retain Customers and Grow Deposits in a Digital World
The Digital Experience is the Branch of the Future
Traditionally, financial institutions relied on their branch network to inspire consumer confidence. They
invested in opulent branches with plenty of marble and rich wood to create a brand that exuded
stability, wealth, and trust. The more well-appointed the branch, the more trustworthy the bank
appeared.
Today, branches matter less and less, especially for consumers under
35 years of age. According to PwC, only half of consumers over 35
choose a bank based on the local presence of a branch or ATM. For
consumers under 35, only 30% make a choice based on location.7
Digital-only banks such as Ally and Simple attract billions of dollars in
deposits without brick and mortar locations.
Consumers are increasingly using online and mobile banking more than they use branches.8 The digital
experience has become the branch of the future—and consumers expect much more than a pretty
home page to rate a digital interaction with their financial institution positively. The digital experience—
just like the branch experience of yesterday—needs to make good on its brand promise of stability,
wealth, and trust.
What Builds (and Erodes) Trust and Loyalty in a Digital World?
Without the physical presence of marble and dark wood—and with customers who rarely visit a branch
anyway—how can financial institutions build trust and loyalty? Financial institutions may not have a
physical location but they do have a digital location comprised of websites and mobile apps that serves
as one component of the full customer experience.
To build trust and loyalty, the digital experience must be flawless. Consumers want fast, convenient, and
reliable interactions that are available anytime on any device. They expect no failed transactions and
have no tolerance for security breaches. Perhaps one of the most frustrating experiences for consumers
is to push the action button when the page looks ready but receive no response because the page is
still loading in the background.
29% of consumer trust a technology company more than they trust their primary bank.
3How to Retain Customers and Grow Deposits in a Digital World
Digital users quickly lose patience when digital experiences don’t meet their expectations. Google
research found that more than half (53%) of mobile site visitors will leave a page that takes longer than
three seconds to load.9 This impatience extends to financial services: 43% of Millennials abandoned
mobile banking activities because the process took too long or was too complicated.10
The website or mobile app must download quickly. Slow transactions not only frustrate consumers
but erode trust, with 44% of consumers saying that slow online transactions make them unsure if the
transaction was successful, according Akamai research.
In fact, slow transactions can be even more damaging to customer trust and loyalty than an outage. In
an Akamai study, sites that went down had a permanent abandonment rate of 9% while the permanent
abandonment rate for sites that suffered from slow performance was 28%.
Of course, one way to ensure fast downloads is to eliminate graphics and video. However, a visually
unappealing site does not have the same impact on consumers. Consumer expectations go beyond
reliability and safety; they also expect a digital experience that is dynamic and engaging.
Monetizing the Digital Experience
The potential cost of a poor customer experience for mobile banking is high. Of those consumers who
abandoned at least one mobile activity, 31% shared their negative experience with family or friends,
opened an account at another financial institution, filed a complaint, or simply stopped banking with
the financial institution.
The bad news for financial institutions is that low switching costs make it easier than ever for consumers
to change banks. Almost half (46%) of Gen Z and 26% of Millennials plan to open a new deposit
account this year—and half won’t open that account at their current financial institution. When they do
decide to make a switch, consumers are 1.5 times more likely to open an account based on experience
rather than interest rate.11
Even if consumers don’t switch banks, a frustrating web or mobile experience has other monetary
repercussions. If they are unsuccessful in a digital channel, some consumers will try to complete the
transactions in the more expensive branch or call center channels.
4How to Retain Customers and Grow Deposits in a Digital World
Data Drives Performance Improvements
The more quickly financial institutions identify website and mobile app slowdowns and errors, the
more quickly they can reap the rewards of delivering a better digital experience to consumers. Data is
a critical component of knowing where to start and it’s imperative to have a broad view that monitors
100% of visitor traffic. Armed with real user data and advanced analytics, financial institutions can
determine what performance issues are getting in the way of quality user experience and business
success.
Digital performance issues aren’t created equal. Some performance issues have a more severe impact
to the business than others so it’s critical to prioritize and fix the issues that, if corrected, will improve
the metrics that matter most for your business.
Financial institutions can use advanced performance metrics like time to visually ready, time to
interactive, and time to first interaction to understand the relationship of performance to user
experience. They can then correlate those performance metrics to business metrics like conversion
rate, form completion, or engagement to determine how making enhancements to the site and user
experience translate into business opportunity.
In the following example, built-in data analysis calculates expected the business outcomes resulting
from a change in performance.
Page Load
Changing Page Load from 1.88s to 1.78s -100ms could change conversation rate to 2.21% +0.10 pts, resulting in a daily revenue change of + $58.9k.
Bounce rate would change to 16.11% -1.21 pts and session length would change to 12.2 +0.4 pages.
Page Load (ms)
0.0 2,000 4,000 6,000 8,0000.0%
2.0%
4.0% Conversion R
ate
6.0%
Ok
50k
Sess
ions
100k
Session Count
Conversion rateConversion2.21%+0.10 pts
Total Revenue$15.3M+ $412.5k
Bounce Rate16.11%-1.21pts
Session Duration9:58 m:s+0.16 m:s
Pages per Session12.2+0.4
Time on Page41.8s+0.53s
1.78 s-100ms
Changing the median speed by 100 ms from 1.88s to 1.78s would yield the results shown
The overall conversion rate would change to 2.21%
Changing Page Load from 1.88s to 1.78s -100ms could change conversation rate to 2.21% +0.10 pts, resulting in a daily revenue change of +$58.9k. Bounce rate would change to 16.11% -1.21 pts and session length would change to 12.2 +0.4 pages.
5How to Retain Customers and Grow Deposits in a Digital World
The following example illustrates page load time, comparing the time to the application visually looks
ready (orange shaded area) to time it is actually ready (blue shaded area). This metric gives a much
more accurate representation of what the user is actually experiencing.
Performance monitoring information empowers teams across the organization to coordinate efforts to
improve the key performance indicators most valuable to the business and allows IT, marketing, and
digital teams to partner on a shared view of success.
Once financial institutions identify and prioritize performance issues, they can remove performance
barriers based on business impact. The most likely culprits are heavy JavaScript and high-resolution
images.
For example, financial institutions can defer or block first or third-party JavaScript that is slowing
down an application. They can also automate image optimization with a tool that uses a math-based
algorithm to adjust the quality of the image, and intelligent logic to optimize the size and format. The
lighter image downloads quickly, but any quality degradation isn’t detected by the human eye.
Time to First Interaction
Time to Interactive
Page Load Time(what you've been optimizing for)
First Contentful Paint947ms
Time to Visually Ready2.47s
Page load3.17s
touch, click scroll
actually ready
looks ready
Time to Interactive5.95s
Time to Visually Ready
#EdgeWorld 2019
Find and fix analyzeAre you using the same performance metric for everything?
Akamai secures and delivers digital experiences for the world’s largest companies. Akamai’s intelligent edge platform surrounds everything, from the enterprise to the cloud, so customers and their businesses can be fast, smart, and secure. Top brands globally rely on Akamai to help them realize competitive advantage through agile solutions that extend the power of their multi-cloud architectures. Akamai keeps decisions, apps, and experiences closer to users than anyone — and attacks and threats far away. Akamai’s portfolio of edge security, web and mobile performance, enterprise access, and video delivery solutions is supported by unmatched customer service, analytics, and 24/7/365 monitoring. To learn why the world’s top brands trust Akamai, visit www.akamai.com, blogs.akamai.com, or @Akamai on Twitter. You can find our global contact information at www.akamai.com/locations
The Final Step: Integrating Performance Monitoring into a Digital Banking IT Organization
Performance optimization is not a once and done proposition, but a process of driving continuous
improvement of the consumer’s digital experience. While technology is critical, successful performance
monitoring also requires building a performance culture based on shared goals and a common set of
metrics. This culture should align development, IT, and the business.
Information sharing helps build this culture. Financial institutions can implement dashboards to serve
as an executive overview of digital performance or to support IT. Correlating performance monitoring
to business results can help marketing and IT teams get on the same page regarding the impact of the
digital user experience to the financial institution’s bottom line.
1 https://www.pewresearch.org/fact-tank/2019/07/25/americans-going-online-almost-constantly/2https://www.javelinstrategy.com/press-release/‘big-bang’-mobile-banking-adoption-over3https://www.emarketer.com/content/is-mobile-phone-banking-usage-near-saturation4https://ww2.idology.com/second_annual_consumer_study5https://www.bain.com/insights/in-search-of-customers-who-love-their-bank-nps-cx-banking/6https://www.cbinsights.com/research/jpmorgan-chase-consumer-banking/7https://www.pwc.com/us/en/industries/financial-services/library/pdf/pwc-consumer-digital-banking-survey-2019.pdf8https://www.aba.com/press/pages/101618mcresults.aspx9https://www.thinkwithgoogle.com/marketing-resources/data-measurement/mobile-page-speed-new-industry-benchmarks/10https://www.jumio.com/about/press-releases/millennials-abandon-mobile-banking/11https://www.pwc.com/us/en/industries/financial-services/library/pdf/pwc-consumer-digital-banking-survey-2019.pdf12https://www.pwc.com/us/en/industries/financial-services/library/pdf/pwc-consumer-digital-banking-survey-2019.pdf13https://www.bain.com/insights/in-search-of-customers-who-love-their-bank-nps-cx-banking/14https://www.cbinsights.com/research/jpmorgan-chase-consumer-banking/15https://www.jumio.com/about/press-releases/millennials-abandon-mobile-banking/
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