Customers still want to get advice from a person when making financial decisions even in today's high-tech world, research suggests.
Peter Neufeld, head of digital advisory and customer experience at accountancy firm EY, told delegates at the Building Societies Association's annual conference yesterday (4 May) there was still a role for personal advice despite the rise of digital alternatives.
But he warned against neglecting digital tools that are disrupting the marketplace and boosting the business of challenger banks and other firms.
Mr Neufeld said: "People are saying 'online apps are great, but I still want to talk to a person, so when I reach the big decision point I have got my lifeline'."
He added that firms such as Instagram are able to achieve faster results using digital than traditional firms, but cautioned against neglecting customer experiences when designing technological solutions.
"I think your risk is in becoming less relevant in the financial lives of customers," he told delegates. "Digital should not just be about building a cost-effective channel but about understanding customer value."
Citing statistics that show many UK consumers struggle to understand financial products, he praised the gov.uk website, which is simple to read but does not appear patronising to more educated users.
Research also shows that customers value firms that "really care about customers and the choices they make," he added, suggesting companies bear this in mind when designing their digital approach.
Mr Neufeld also stressed the regulatory benefits of well-designed digital solutions.
"You should be able to lead the regulator and point out what you are doing that your competitors are not," he explained.
simon.allin@ft.com
