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. Customers can independently check their balance, deposit checks, and open new accounts while on any device. Gartner predicts that by 2020, customers will manage 85% of the relationship with an enterprise without interacting with a human. When was the last time you had to go into a bank to speak with a representative?

A study conducted by McKinsey & Company revealed that over a recent 5-year period, there was a significant change in the type and frequency of channels clients used to communicate and transact with their banks


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 bank offers a similar suite of products, ensuring a fast, seamless and personalized customer experience is the only key to differentiation and success. To gain a competitive advantage, banks must enable customers to complete more complex tasks online, in addition to offering standard online banking services.

Below, we outline how digital transformation is improving customer experiences in the banking industry:

Map the Customer Journey

Most banking consumers expect interactions with their financial institutions to be consistent across all touchpoints. As a bank, it’s crucial to have a clear and unified view of how a customer interacts at different touchpoints to improve their customer experience. However, communicating consistently with a client across all touchpoints requires a single outline of the customer. By applying advanced analytics to the significant customer data banks have at their disposal, they can build a complete picture of their clientele, from the customer’s first interaction, all the way to purchase. A view of the average customer journey helps banks answer mission-critical questions including which touchpoints to focus on to maximize delivered value, or which operational risks to eliminate to reduce service costs.

Integrate the Channel Experience

Today, customers can research a product on one channel, yet make the final purchase on another. Banks must emphasize omnichannel customer experience and integrate all the channels to ensure a seamless handoff from one channel to another. Customers are not willing to repeat themselves when switching from one channel or department to the next. So, to have a comprehensive view of a customer’s history, banks need to integrate physical and digital channels while removing any organizational and functional siloes that prevent this integration.

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 utilize social monitoring to understand their clients, monitor brand mentions, and capitalize on competitor weaknesses.

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 progress with their own digital transformation.

AUTHOR
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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