Digital transformation in retail banking facilitates the creation of awesome customer experiences
Digital disruption and innovations are entering the financial sector from multiple directions and it’s in the best interests of every bank to find a way to build customer-centric banking solutions in order to meet the ever-changing clients’ needs. Digital transformation in retail banking is driven by a high level of customer experiences in all aspect of services and product.
Technology and data that significantly improve the customer journey is a part of this upcoming change. It goes without saying that the retail banks that are capable of implementing a real customer-centric approach will obtain a competitive edge to keep in mind customer demands and to deliver the offers based on unique individual preferences.
Capgemini's analysis demonstrates that retail banks that relate their business operations with the superb customer’s experience tend to get greater positive customer perceptions and loyalty. Thus, by opening up API network, data barriers for retail banks are resolved and that pave the way to make the whole customer experience more seamless and transparent.
Leading retail banks are already using these trends and getting positive outcomes. For example, recently Santander announced it is set to become the first high street retail bank to permit customers to employ their voices to check their bank accounts and authorise payments via its app. This not only improves customer engagement with banking services, but also assists in terms of customer experiences and loyalty.
Only by committing to a two-way conversation with customers can banks truly get ahead of trends, fend off new competitors and create a meaningful and authentic relationship with their customers.
What are the trends that will change customer experience in retail banking forever?
Your main branch can now be found in your own pocket. The results of the PACE study show that digital self-service is a high priority for consumers under the age of 53. All generations except Baby Boomers — from young Millennials through Generation X — now prefer the mobile channel. People are banking on their mobile devices more than they use any other retail delivery channel, including desktop PCs, ATMs or physical branches. 72 % of all bank interactions are digital, with millennials leading the way.
Smaller institutions are having similar digital capabilities as the famous megabanks. Nowadays, the clients expect the same digital tools (mobile deposits, transfers, account opening, digital payments) from their banking provider, regardless of its size or scale. Consumers want their community banks to deliver the same range of products and services they could find if they used larger institutions.
24-hours accessibility of the banks or entering into the age of “helicopter banking”. Customers expect the banks to be always accessible, to be always there for them, and act as a long-term advisor. Although not all the banks are able to meet the growing demands of millennials, the majority of the big players are already rapidly upgrading their systems and add capabilities.
Customers want their own financial consultant. As for today, the banks and credit unions are already well positioned to expand their advisory role and services to serve as the trusted source of wisdom to the consumers, who want to find out more about management of their finances. Deploying trusted financial advice across channels, assets levels, and price points is essential to success.
Trust is good, but security is better
Loyal customers trust their banking providers, yet, should some fraud occur they are likely to switch to another provider. There’s no second chance. Thus, it’s crucial for the banks not only to institute multi-layered security protocols to protect their institutions from malicious threats, but also give their customers the tools to protect themselves and their accounts.
There’s a deteriorating relationship between banks today and their customers, and customer experience in retail banking is a big part of the problem. The study conducted by Vision Critical found out that 49 % of customers have only “moderate trust” in their primary financial institute. Is there any way to mend the situation and to re-connect with the customers?
Some financial institutions came up with their own ways to re-establish the lost trust of the customers. Thought leadership is considered one of the top strategies used to re-connect with people. For instance, some banks are offering instructional videos on a range of financial topics, from homebuying to credit ratings.
Giftvertising is another technique used to show the perfect knowledge of the banking customers. To illustrate, TD Bank embarked on its “Automated Thanking Machine” campaign, where specific customers, nominated by branch staff, were sent to a special ATM to conduct a transaction. There, a voice inside the ATM spoke to them and thanked them with personalized gifts: DisneyWorld family vacation for a widowed mother of two, a trip home for a Trinidadian woman who’d been sending funds to her cancer-stricken daughter, etc. These encounters rapidly went viral: the gifts reflected how well TD understood what mattered most to its customers.
Personal motivation a kind of interactive advertising and marketing initiative that encourages people to share their definition of what it means to be healthy. In such a way, some banks encourage their customers to state their fitness goals and connect them with mobile fitness apps to track their progress.
In the world of today, the empowered customer wants it all: mobile, online, face-to-face and everything in between. The urgent and critical task for banks is to figure out what truly matters to their customers and deliver the experience people are looking for.
On the other hand, the banks that succeed in monetizing their most valuable asset, customer data, will emerge as the future leaders, growing and protecting marketshare against both traditional and non-traditional competitors. In turn, connected, impatient, and highly-informed consumers demand personalized banking solutions to secure their financial futures.