No matter how good the products you offer are, no matter how much of a better deal you provide compared to your competitors, a bad customer experience in banking is often enough to turn away a potential paying customer.
According to Zendesk’s CX Trends 2024 report, more than half of consumers will switch to a competitor after just one bad customer experience. Because of the increasing ease of at-home service, most customers are just a few phone calls or clicks away from switching to a new financial institution: if they receive any reason at all to switch, chances are they will.
Customer experience in banking is the key to gaining and retaining account holders, and by taking a close look at trends and acting upon them, financial institutions can deliver the kinds of service experiences that modern consumers expect.
Customer Experience Trends in Banking
Research reports and analyses show that expectations for the banking customer experience are being shaped largely by the tech giants of the world rather than other financial institutions. Companies like Amazon, Netflix, and Spotify are providing consumers with the digital service experiences that they are looking for in every other aspect of their lives.
It’s no secret that the customer experience in banking is primarily going digital, and especially towards mobile devices. Deloitte found that 84% of customers use digital banking, and 72% use their bank’s mobile app. Consumers are frequently expecting to be able to do just about anything they could do at a physical branch over digital, and will be disappointed when given no choice but to call in or go to their local branch.
There’s a reported positive correlation between customer experience and value as well: Research at McKinsey & Company shows that businesses that are leaders in CX (The top 25% in NPS) show a 72 percentage point difference in Shareholder Return to those who are laggards in this category (in the bottom 25%). It’s clear that having a positive customer experience can make a world of difference when it comes to consumer spending and return on investment.
Another trend rising in customer experiences in banking is personalization: According to JD Power, 78% of consumers want personalized support, but only 44% of banks actually deliver it. Consumers want service that already knows what they need, that takes their preferences and history into account.
Lastly, you certainly can’t talk about customer experience trends without mentioning artificial intelligence. EPAM’s 2024 Consumer Banking Report shows that 96% of consumers are happy with utilizing AI for a smoother customer experience. Financial institutions are looking for any way they can to add the efficiency gains of AI to their customer experience, from virtual assistants to automated tools for agent assistance.
Three Ways to Improve Customer Experience in Banking
As demonstrated, having a good digital customer experience is no longer a nice-to-have: It’s easily in the territory of a necessity and lacking in this aspect can spell disaster. Here are three ways that you can help ensure you’re delivering the best digital banking customer experience you can to drive loyalty and retention.
- Ensure equal access to all digital channels
Many customers have a preferred channel that they like to get in touch with you through: email, phone, SMS, or online chat to name a few. Furthermore, the type of need that a customer is approaching you with will often affect the channel they want to reach out through, like phone for more important inquiries and chat for smaller things. Being sure that no matter what a customer wants to get done or where they may be, they always have access to the channel they need, is crucial.
Furthermore, being able to switch between channels without unnecessary disconnections or needing to repeat information is another great addition. Without this, users who need to change to a new communication method in the middle of solving their issue will need to get back in line and explain their entire issue once again. This creates a frustrating experience that can be avoided with a Unified Interaction Management solution.
- Give your reps the tools for personalized insights and service
Allowing your live reps to provide tailored responses and greetings for customers, avoiding the impersonal ‘how can I help you?’ back and forth, gives users the feeling of a genuine connection between them and the business. This can be achieved with digital tools such as business rules and automated routing to instantly give reps insights into what issues the user is having.
You can also allow your representatives to both see the screens of customers as well as personally guide them through tricky processes. Helping to bridge the gap that a digital service experience creates by allowing for shared visual context and guidance helps create that more personal connection and provides a deeper connection.
- Utilize Responsible AI
Implementing an AI chatbot to your banking customer experience seems like a surefire hit – though, there can be just as many reasons to be weary about this technology as there are to be excited. While a good AI solution can be well worth it, a bad one can be much more trouble than it’s worth, costing you time, money, and most valuably, trust. You need to ensure that any AI you introduce is purpose-built for banking, with the security and compliance needed to keep you and your customers safe.
Responsible AI is necessary for an automated solution that actually improves the customer experience in banking. There must be thought and care put not only into the novelty and advanced nature of the solution, but also its implementation and how it can be used effectively. It must be built with the financial industry in mind, secure enough and with enough checks and balances in place to prevent potential mishaps.
Conclusion
The customer experience in banking is more important than ever, and in a world of heightened expectations for digital service it’s becoming crucial to keep up with others. As a positive customer experience becomes one of the biggest reasons why a customer will stay with a financial institution, businesses that invest in their customer experiences will see ongoing success in customer retention and spending.
Glia’s Unified Interaction Management (UIM) platform is a solution designed to help your digital banking customer experience, in all of these ways discussed and so many more. UIM brings together digital service, call centers, and AI under one roof, allowing for seamless connections between them and a suite of tools to allow for the personalized experiences customers are expecting. All this, combined with a focus on Responsible AI that’s catered to the specific needs of the financial industry, gives your customer experience the edge it needs in this increasingly competitive landscape.
