Customer Experience in the Banking and Finance Industry
The evolution of banking is happening faster than many realise. Growing customer expectations, new technologies, inefficient legacy businesses and the changing regulatory environment have opened the door to competition from within and outside the sector.
The safe, reliable rules of retail banking are becoming less relevant as new business models, technologies and generations of customers enter the picture. Yet significant cost reduction, product marketing and risk remain the touchstones of banking, often to the detriment of customers and growth
Whilst increasing in customer experience, overall banks are still inconsistent in delivering a superior customer service. Banking leaders are challenged to create growth in a changing market and whilst they acknowledge that customers are the driver of growth – not enough focus has been on consistently delivering a superior customer experience. The latest analysis by shows that customer experience is the key to achieving growth. In a recent report from KPMG, they estimated that for the average ‘Big 4’ bank, customer experience transformation could equate to £3.7bn in extra revenues over the next 3 years. (KPMG 2016)
- Personalisation – help me in my journey when and how I need it
- To feel valued
- Their long term value is recognised and rewarded
Customer expectations – Where does customer value come from:
- Brand promise
- Day to day basis to exceed expectations
- Time and Effort – minimise my time and effort so I can get back to doing what I want to do – enabling customers to minimise the effort to make a transaction – physical effort, time, emotional effort. Outside of banking Amazon has managed to perfect this.
- Integrity – 3 levels
- 1st what does the organisation stand for/the purpose making money for shareholders or …congruence – be authentic – fulfil the promise)
- 2nd competence – can you help me and give me the right advice and help
- 3rd does the bank meet its promises
- Resolution – fixing mistakes or service recovery which means a mistake needs to be fixed well. This can actually increase loyalty benchmarks like NPS.
- Empathy – wear my shoes and give me the right emotional response
Challenges to customer experience:
- Well-intended regulations in a way that is additive to the customer experience and doesn’t detract from it.
- Digitisation is great and brings many advantages but you can’t get away from the fact People like people but the cost to serve is high and not efficient.
- Companies in our sector need to always respect their customers and remember they appreciate being able to talk to real people.
- 2/3rd of transactions will be undertaken by millennials (30%) and those over 50 years of age (35%) by 2020 – two fundamentally different users.
- Millennials have a jaundiced view of the banking industry so what are banks doing to engage this market where the competitors are going to be coming from non-banking sectors
Critical to growth in the banking value:
- Continue to embed customer insight into development cycles, and speak to customers to get closer to their daily lives and understand how they really use smart technology so banks can be sure to provide the banking services they want and need.
- More convenient or secure for customers to access their accounts
- Technology is developed to make things easier for customers and solving key customer concerns.
- Highly trained people to ensure they fit the culture (authentic to the purpose of the business)
- Digital Channels have embedded customer feedback into the design and test stages of features development with real customers working with us in these important areas
- Governance to take insights from customer journey maps back into the organisation to make a difference.
- Personalisation and empathy are the largest movers of customer centric benchmarks within the banking industry.
- Intensive focus on empathy training with all levels of staff
- Brand ambassadors with strong trust
At 6peas, we understand how to effectively implement customer best practice for your bank, the commercial rewards for successful transformation, understanding current performance: banking leaders & laggards, defining the target experience most associated with growth and building the bank of 2020 – capabilities and leadership needs. We partner with your senior management team to deliver on your CX goals.