New Survey Shows Significant Revenue Opportunities from Improved Customer Service for Financial Services Firms
CAMBRIDGE, Mass. – October 19, 2010 – Pegasystems Inc. (NASDAQ: PEGA), the leader in Business Process Management (BPM) software solutions and a leading provider of customer relationship management (CRM) solutions, today unveiled survey results that underscore the growing importance of customer service in corporate banking. The findings, part of a joint survey conducted by Finextra Research and Pegasystems polling banks and corporations, show a significant market shift.
In perhaps the most telling responses, 57 percent of corporations said they would accept paying higher fees for a web portal with more sophisticated self-service that allows them to manage their entire portfolio online. Another 46 percent said they would pay more for consistent service across different regions, channels and lines of business. Fifty-three percent cited quick turnaround times to requests and inquiries as one reason they would increase doing business with their bank. The survey results – comprising responses from 98 respondents from banks and corporations in Europe, Asia and the US – come as the annual SIBOS Conference takes place on Oct. 25-29 in Amsterdam. Pega is exhibiting in booth A655.
Not long ago, fees and interest rates were the two key competitive advantages for banking firms. The survey shows that this sentiment is now changing. Corporations are prioritizing ease of access to service and information channels as critical elements of deciding where to place their business. The study found 64 percent of financial services institutions plan to invest significantly to improve and automate on-boarding and service processes this year, a nearly 40 percent increase in response to the same question posed in a similar survey last year. But while financial firms grasp the need to automate customer service operations, many remain hamstrung by aging information systems which are too brittle to meet the new requirement. The survey also found:
· 68 percent of corporations would consider switching banks for better customer service around on-boarding, account maintenance and query handling, a remarkable 24 percent increase over last year’s response to the same question.
· Inconsistent customer service across channels, regions and lines of business and poor access to service and information channels were the two most common reasons that corporations decreased the amount of business conducted with a bank.
· Banks’ IT departments continue to spend more to improve and automate on-boarding and service processes. Eighty-four percent of banks say they will spend money in this area in 2011, or 20 percent more than responding affirmatively this year.
· Amidst a record number of bank closures, financial stability was understandably seen by banks as their second most important selling point and the number two criteria by which a corporation judges a new bank.
Pega’s advanced BPM technology, including a wide range of financial-services specific solutions, leverages dynamic, intelligent decision management to improve business outcomes. These solutions help banking firms reduce costs and improve customer service across all channels. Firms also benefit from a lower total cost of ownership; they can leverage existing investments in legacy systems to achieve enhanced functionality in 90 days or less. The extensible and configurable nature of these solutions, with built-in support for multi-channel servicing, means business users can adapt quickly to changing market or business needs.
Tony Young, Principal, Financial Services Industry Solutions at Pegasystems
"The survey results, while eye-opening, confirm what we’ve been seeing in the marketplace. They also validate Pega’s approach to empowering financial services institutions with advanced technology, around client on-boarding, inquiry management and client service. Consistent, high-quality customer service across all channels, lines of business and regions is very hard to achieve, yet many top-tier banking organizations have been successful by leveraging our Build for Change® technology to improve customer satisfaction for their clients. Corporate clients want better service, and one rising concern is the ability to access their portfolio from anywhere, so I’m not surprised they are willing to pay higher fees for it."
Paul Penrose, Head of Content at Finextra
"This comprehensive survey, which culled data from several key titles in customer service and treasury roles, shows the shifting market in financial services. More and more global corporations want additional value from their banking relationships, and advanced BPM and CRM technologies play a key role in providing high-quality customer service. The most successful financial institutions will be those who excel in this increasingly important area."
To see more about Pega’s participation in SIBOS, visit: https://www.pega.com/sibos/
To see more about Pegasystems’ financial services solutions, visit: https://www.pega.com/industries/financial-services/bpm-for-financial-services.asp
To see the entire survey, visit: http://www.finextra.com/corporatesatisfaction/download
Finextra Research is the leading newswire and online community for the global financial technology industry, with 3 million page views and 110,000 unique visitors per month. More than 26,000 financial technology professionals worldwide receive our free daily and weekly e-mail newsletters. Finextra additionally operates its own annual conference and exhibition for the capital markets industry, Finexpo, and collaborates with the Euro Banking Association to produce the annual pan-European payments conference EBAday. Finextra is also the official online news vendor for Swift’s annual financial technology conference Sibos.
Finextra additionally hosts an online professional networking and blogging service for the global financial technology industry – www.finextra.com/community.
Pegasystems (NASDAQ: PEGA) develops strategic applications for marketing, sales, service, and operations. Pega’s applications streamline critical business operations, connect enterprises to their customers seamlessly in real-time across channels, and adapt to meet rapidly changing requirements. Pega’s Global 3000 customers include many of the world’s most sophisticated and successful enterprises. Pega’s applications, available in the cloud or on-premises, are built on its unified Pega 7 platform, which uses visual tools to easily extend and change applications to meet clients’ strategic business needs. Pega’s clients report that Pega gives them the fastest time to value, extremely rapid deployment, efficient re-use, and global scale. For more information, please visit us at www.pega.com.
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Lisa Pintchman Rogers
VP, Corporate Communications
Director, Corporate Communications
Sr. Manager, Public Relations
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