Gartner predicts that by 2020, customers will manage 85% of the relationship with an enterprise without interacting with a human.

Banking customers are undergoing a radical behavioral change as new online and mobile channels enable a range of services that don’t require interactions with bank representatives. This holds true when customers perform their banking transactions as well. Just think for a minute - when was the last time you visited a bank branch, excluding an ATM?

A study conducted by McKinsey & Company revealed that there is a significant difference in the number of clients who used multiple channels to communicate and transact with their banks over a 5-year period.

Image credit: Compunnel Digital

But it’s not just about adopting digital channels to simplify customer interactions. Retail banks must undergo a complete digital transformation to enhance every aspect of their customers’ experience. Since almost every retail bank offers similar suites of products, ensuring a fast, seamless and personalized customer experience is the only key to thriving. To gain a competitive advantage, banks must enable customers to complete more complex tasks online, in addition to offering the basic online banking services.

Below, I have outlined how digital transformation helps in improving customer experiences in the banking industry:

Map the Customer Journey

Most banking consumers use multiple channels including helpdesk, chat, phone, IVR and Email to interact with their financial institutions and expect consistent service across all these touchpoints.

It’s crucial to have a clear, unified view of how a customer interacts at different touchpoints to improve their customer experience.

However, communicating consistently with customers across all touchpoints calls for having a single view of their journeys. By applying advanced analytics to the significant amount of structured and unstructured data they have at their disposal, banks can build a complete picture of their customers, from the time they first interact with any of their online properties all the way to using purchased products and services. A common view of the customer helps banks answer mission-critical questions including which touchpoints to focus on to maximize delivered value, eliminate operational risks and reduce the cost-to-serve.

Integrate the Channel Experience

Today customers research about a product on one channel and make a purchase via a different channel. Therefore, banks must emphasize omnichannel customer experience and integrate all the channels to manage a customer’s journey and to ensure a seamless handoff from one channel to the other. Customers are not willing to repeat themselves whenever they switch from one channel or department to the next. So, to have a complete picture of a customer’s history, banks need to integrate physical and digital channels and remove any organizational and functional siloes that prevent them to do so.

Be Social

Banks can reach and influence prospects and existing customers across geographies through social media. As social media enables free and borderless sharing of experiences, banks must consistently monitor these channels and quickly address any negative comments shared by existing or past customers.

According to a research conducted by Medallia, 80% of Millennials cite personal experience, reviews or recommendations as the top reason for switching banks.

Due to a combination of heightened competition and evolving customer expectations, the banking industry today has become extremely vulnerable to disruption. Differentiated and delightful customer experience has become equally and, in many cases, more important than providing robust financial products and services. To stay in the game, banks must swiftly get on with their own digital transformation.

Silky Sinha

Silky Sinha

She is the customer experience analyst at Compunnel Digital.  A digital native with a global mandate, Silky is always on the search for industry best practices across multiple verticals. She identifies companies with superior customer experience based on the Compunnel Digital Customer Journey Framework. Her research helps our clients and informs the market at large.

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