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Customer Experience in Retail Banking – The Need and Top Priorities

Customer Experience in Retail Banking – The Need and Top Priorities

Retail banking has never had it worse and delivering a good customer experience is more important than ever. It is a banking sector that is still trying to build its reputation from the 2008 financial crisis, but today, customers are far less forgiving with more market players and with more choices.

Customer experience is the basis for customer loyalty in many retail banking areas, so effective internal communication in retail banking is crucial as the sector grows.

“Bottom line, having a customer-centric culture is more than just a good thing- it’s becoming a matter of survival.”
Jim Marous

To keep their customers, retail banks need to place customer experience as their focus. Looking at the customers’ need and delivering them efficiently will help keep their head above the ground.

This blog article dwells in to the various customer experience needs and priorities in retail banking, and how technology can help achieve them.

The need of Customer Experience in Retail Banking

According to a report by marketsandmarkets, customer experience market is projected to grow from USD 8.5 billion in 2020 to USD 14.9 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 11.8% from 2020 to 2025. This estimate clearly echoes on to the initiatives lined up for customer experience transformation in every industry. Let us look at why retail banks need customer experience
Customer needs are rapidly changing in Retail Banking
Today, customers are more empowered, less loyal, and usually maintain relationships with multiple financial institutions. Customers are far more demanding as there are numerous options that all want their business. Understanding the customer’s mindset and knowing what competitors are doing, could aid retail banks in devising an effective strategy that lets both sides benefit.

Positive customer experience is more important than ever as reports show that customers trust peer reference seven times over advertisements. If a customer does not get a good service, they may never return to the bank and their perception levels drastically changes. Already, customers are skeptical about financial institutions, and their reviews/complaints make more significant impacts globally with the advent of social media.
Helping Customers Select the Right Products
Customers are looking for retail banking partners who can recommend suitable products they need. Researching options is crucial in the onboarding process, and customers are looking for banks that can take the process off their hands. In the onboarding journey of customers, researching options is one of the most deficient performing aspects, but it is twice as important as any other step in the onboarding path.

A retail bank can personalize customer engagements by recommending best options based on their available information and needs. This way retail banks can significantly boost the levels of customer satisfaction. If you explain all the options available to the customers clearly, they’re more confident in their choices and will trust you better. All of these contribute in no small part towards retaining the customer.

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Top Customer Experience Priorities in Retail Banking

  • Personalization is key

    You have to deal with customers who belong to an age where no one wants to visit the branch. So, we are more or less seeing branchless banking in full swing. This is where banks have to be very innovative and adopt personalized approaches which can help them. In order to cross-sell or up-sell, many retail banks have started aligning personal account advisors and managers who can help their customers. Furthermore, retail banks can take advantage of new-age experience platforms and systems which allow highly personalized customer engagements.

  • Omnichannel Methods is the way forward

    Fostering a seamless experience through omnichannel banking is one of the biggest trends in retail banking. The five omnichannel methods are communication, face-to-face interactions, data, onsite check-in, and online appointment booking. Communication involves keeping customers informed of all the required information on a daily basis through various channels. Data involves using key metrics to gather intelligence on what customers want most so you can engage with them in the best possible way.

    Of all the omnichannel methods, appointment booking plays the most important role because it allows customers to book and change appointments anytime, giving them enough flexibility. Retail banks worldwide are implementing different forms of appointment booking methods to make the customer journey seamless and safe. KYC processes are done virtually through videos by many banks to avoid branch visits. This trend touched its peak in the current crisis. Necessary web security controls are in place to avoid any data theft and cyber security threats. Other essential features of the omnichannel approach include mobile app integration, internet banking, and self-check-in services.

  • Efficiency is a clear choice

    Keeping efficiency for customers and staff is now paramount in delivering quality service. Putting a customer journey management system in the process can significantly improve the handling of customers in a branch leaving customers more satisfied.

    A smoother journey means less wait time for the customers, and the staff is positioned and used effectively to obtain the best results. A sound customer journey management system ensures that they are directed as customers entering the branch virtually, and staff attends to them in a smooth process. Reinforcing this kind of positive experience will encourage the customers anytime they have to come into the bank.

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    How Can Technology Help?

    Customers are looking for simple banking system they can easily understand their needs and wants. Other important factors are transparency, conciseness, and precise services. Banks that are upfront about all their fees, rates, communications, and services are on the right path to keeping customers satisfied. Investing in the right technology can bring unmatched value to retail banks in raising the bar for customer experience. These include as follows

    • Flawless communication
      Communication is paramount in garnering customer experience. Effective means of communication through best-of-breed channels is a clear necessity. Technology service providers can help in building innovative channels which foster the culture of prompt response system to engage and retain customers easily.
    • Proactive Support matters
      Many customers want interactive and personal relationships with their banks, especially with regards to support. This is where retail banks also have to put efforts into advisory services through technology channels. Banks can use a combination of external and internal resources, including networks of financial experts and advisors, to provide reliable insights to their customers through apps and other means. Banks can also utilize big data and analytics to gain prior knowledge of their customers and their behaviors to deliver personal finance tools.
    • Live Assistance
      Mapping your customer’s journey with CRM software can help banks identify specific metrics such as:

      • Insights to help reduce the customer journey
      • Know and understand customer expectations to serve them better
      • Detecting common complaints
      • Identify the common touchpoints of customers with the bank.

      Based on the information obtained from the above, retail banks can serve their customers better with live assistance using advanced tools like video chat and co-browsing. Visual customer engagement methods can help banks proffer faster solutions to their customers in real-time. Banks will improve customer resolution time, cut down on the sales cycle, and assign tickets to touchpoints appropriately.

    • Chatbots
      Even though chatbots shouldn’t replace human contact, you can use them for routine and simple customers tasks so staff can focus on more significant business priorities. Some of these tasks include checking account balance, changing addresses, outstanding credit card amount, and other tasks where humans are not needed. AI can help you train the bots to handle conversations better and match language style or convenient time with the customer. Bots can also help you deliver a 24/7 availability that customers crave in today’s world. Integrating chatbots into apps can give them access to the user’s account details and provide more personalized service.

    Conclusion

    Retail banks need to transform into a model that puts customers at the heart of their service to better fit in today’s world. Previous traditional banking systems were based on services that suit the banks and not the customers. But today, where there’s fierce competition, that model may be their undoing.

    Banks need to learn to cross-sell and deliver excellent service that leaves customers satisfied to maximize their ROI. Putting the priority on customer experience can help banks compete in the market favorably.

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    Digital Transformation in Corporate Banking

    Digital Transformation in Corporate Banking

    Today, more than ever, people value the ability to transact and carry out tasks from the comfort of their homes or on the move otherwise referred to as ‘anytime anywhere’ banking. Corporate banking is in the cusp of revolutionizing its identity with significant layers of digital transformation.

    This blog reflects existing roadblocks of digital transformation in corporate banking, the focus areas and the limitless benefits associated.

    Existing roadblocks in digital transformation for Corporate Banking

    The pace of digital transformation in corporate banking is slower in comparison to retail banking. Many existing dilemmas reside within this segment which causes a hindrance towards effective digital transformation.

    • Monitoring and management: Portfolios and positions in corporate banking need consistent monitoring and management, which might be challenging to do digitally. Corporate bank customers go beyond looking for banks that provide financial services; they often want partners to help them manage their businesses properly.
    • More at Stake: The relationships in corporate banking require more commitment from the customer and bank, which can be challenging to achieve. Since the stakes are higher, the risks also increase their reluctance to foray into digital transformation in corporate banking.
    • Complex to Implement: Retail processes are more straightforward and more linear to understand, making it easier to adopt digital transformation processes without a hassle. The services in retail banking are also very productized, making them easy to navigate. On the other hand, corporate banking might mean that a large corporation has many accounts across geographies, currencies, and banks, complicating it.
    • Corporate banking is relationship-driven: As opposed to retail banking, corporate banking is developed by relationships that might have taken several years to build in some cases. Many of these relationships were from in-person meetings and interactions using paper documents. It has been challenging carrying over and using digital transformation in corporate banking for these relationships.

    The four ways of digital transformation in corporate banking

    While there are existing roadblocks in digital transformation, corporate banks can still manage to transform digitally which can yield them accelerate business growth. We have listed for ways

    Predictive insights through Big data and Analytics for improving sales pipeline

    Banks have access to a lot more information than other companies in other industries. They collect data through onboarding, account openings, and the several transactions carried out. Meaningful insights can be drawn out from such data for boosting sales and marketing effectiveness. For example, Big-data and analytics can play a significant role in personalizing customer engagements. This means, banks can recommend appropriate products suitable for a particular customer. Similarly, service improvements can be initiated using sentiment analytics.

    Digitize commercial routines to improve front-office efficiency and effectiveness

    In corporate banking, relationship managers usually spend lower than 30% of their time in client-facing activities. Banks have tried using many front-office initiatives to no avail; the introduction of digital transformation in corporate banking can help solve this problem better. Process digitization can give the relationship managers more free hand to have more time to interface with clients and even use some digital channels for further communication.

    Many front-office software solutions allow these relationship managers to organize their activities and complete administrative tasks quicker. This way, they can meet up with colleagues and prepare themselves for client interactions based on their profiles.

    Enhance connectivity with clients and cost-to-sere by using true multichannel banking

    Corporate banking models only consider relationship managers as the only vital sales channel and often neglect multi-channel support. This goes back to the relationship-driven nature of corporate banking and the management method. Banks can use digital transformation in corporate banking to use multi-channel banking methods. Some others have started experimenting with more unique coverage models and multi-channel offers for corporate entities.

    Digital technologies allow some customers to engage with the bank and perform some activities online, such as capturing information which could even be through mobile devices. Only the complex questions are routed to the relationship manager. These multi-channel methods also allow the banks to reduce their costs to serve customer segments that do not generate as much revenue and justify costs in the relationship manager model.

    Automating processes from beginning to end through quick process digitization

    End-to-end processes are formulated to reduce complexity and make a customer’s journey faster, smoother and stress-free. Digital transformation in corporate banking regarding the client onboarding process can reduce the time taken from about two weeks to less than 48 hours. Apart from faster processing of procedures, there is also a considerable decrease in error and cost reduction.

    Many banks have employed automation and lean methodology processes such as continuous improvement and reducing waste to foster better end-to-end processes. This way, banks can implement digitization technologies through short stints compared to multi-year or multi-month projects, which take too long for results to show. By using digital transformation processes, you can start seeing significant results in weeks.

    A Success Story

    Build-out-the-bank program for Allica

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    Top focus points of digital transformation in Corporate Banking

    While developing tools for digital transformation in corporate banking, consider these areas as it is one of the most important to customers:

    • Risk management: Consider intuitive tools to help customers keep track of the constantly changing risks in credit, interest rates, operations, regulatory compliance, currency, and information security.
    • Liquidity management: Develop methods by which customers can easily manage funds for financing, investment, and operations.
    • Cash management: Look at easy-to-use solutions that make buying, lending, collections, letters of credit, payments, information reporting, investing, and foreign exchange easier.
    • Data management: Develop tools that foster partnerships and collaboration with creditors, technology service providers, chief financial officer, investors, and banks.

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    What can digitization offer to Corporate Banks?

    • Competition Edge: New technologies will continuously develop, which will lead to an increase in specialized skills. Digitization isn’t a one-and-done process. It ensures you are ready for the next technology wave, and you can position yourself to cater to customers and offer new solutions. Allowing employees to develop these skills will sustain the bank’s growth and keep you ahead of competitors.
    • Time to market: Digital transformation in corporate banking gives far less time for the banks to release products to the public. Because of the continuous integration and continuous deployment processes, banks can reduce their testing time and release products to their customers quicker.
    • Customer Experience: Today, people are looking for services that make their lives easier more than ever. Digital methods focus on providing the best customer experience to stay competitive. Companies that focus on the customer’s journey increased speed and agility in insights, customer adoption of digital customers, and agility in transformations will be the authority.
    • Process Simplification: Digital transformation methods have shortened the steps and processes for businesses to connect with their clients. Technology has made it easier for people to connect and banks leveraging that advantage for their digitization brings their workforce and whole architecture together.
    • Cost Savings: From managing physical documents to scheduling and making it for in-person meetings, digital transformation in corporate banking considerably cuts down your costs.

    How can Maveric help in digital transformation for Corporate Banking?

    Maveric is a solution-led banking transformation provider for retail banking, corporate banking and wealth management. As an award winning transformation partner for many leading corporate banks, we can bring our contextual solutions, frameworks and proven accelerators to plan and execute your digital transformation goals. Our extensive banking domain coverage, contextual solutions, insights-led engagement and high velocity execution has enabled us to be a partner of choice for digital transformation.

    Conclusion

    Digital transformation is an unavoidable topic in corporate banking. Agility and flexibility of banks to respond faster to their customers will be the key to success. Furthermore, superior customer experience with insights led ecosystem will be the ultimate goal through exponential digital transformation.

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