Top Strategies for Improving Customer Experience in Banking

Janifha Evangeline, Assistant Editor, CIOTechOutlook | Saturday, 10 February 2024, 15:39 IST

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FIS has introduced a platform that enables the customers of its clients to share their banking information. According to a news release on Thursday, 8th of February - the international financial technology company, headquartered in Florida, has joined forces with data networks Akoya, Envestnet, Yodlee, MX, and Plaid to incorporate into the FIS Open Access platform. According to the release, this platform for open banking enables users to share their financial data with a greater range of third-party financial applications and services. Based on the statement by FIS, the platform allows users to securely access and exchange their financial information in a convenient and regulated way. It enables users to collaborate with third-party financial app providers and have control over the information they share and who they share it with. The platform also provides banks with the ability to track and analyze how their customers are sharing financial information, who they are connecting with in the FinTech industry, and the frequency of these interactions.

“Consumers of all ages are increasingly using third-party apps to manage their finances when they want, and creating a seamless experience for them to do this is crucial for traditional banks and credit unions as they look to retain and grow their customer base,” said Hashim Toussaint, general manager for digital solutions at FIS.

Enhancing the customer experience in the banking sector is a key focus for 2024, and for very valid reasons. A single-point rise in a CX index score has the potential to generate an extra $144 million in yearly revenue for conventional retail banks. Furthermore, a significant 81% of businesses in the present era primarily or completely strive to outperform others based on the quality of their customer experience. To put it differently, contemporary banking clients are becoming less concerned about interest rates, account characteristics, or the physical proximity of branches. In contrast, they now anticipate banking experiences that are convenient, smooth, and tailor-made. In this article let us look at the expectations of contemporary customers towards banks and financial institutions and how can we improve the customer experience in banking.

Simplify and expedite the account opening process

Account creation and onboarding are among the most significant concerns for banking customers. According to research, European financial institutions experience a loss of nearly 66% of applicants during the onboarding process.

To be precise, the percentage of European consumers who gave up on using a digital banking application increased from 63% in 2020 to 68%. People abandoned the application process due to its extensive procedures and excessive information demanded.

Therefore, for numerous banks, the initial measure to enhance the customer experience in banking should be pinpointing any obstacles present in the onboarding procedure. Keep in mind that the onboarding process does not start only when you fill out forms. Rather than that, it commences by assisting customers in comprehending which specific products and services are most suitable for their individual requirements.

The objective is to reduce the number of onboarding procedures while ensuring compliance with regulatory obligations. A lot of banks are incorporating biometric authentication as a component of their customer identification process by utilizing new identification methods.

Chime is an American fintech company that offers cost-free financial services via a mobile app. Unlike traditional consumer firms, Chime operates differently as it does not have any physical branches and does not impose monthly fees or overdraft charges. Visa debit cards are provided to individuals who hold accounts, granting them the ability to utilize an online banking system either by visiting or using the Android or iOS mobile app.

Conversational Banking

Fintech companies have made conversational banking an important tactic, particularly to enhance the onboarding process. Conversational banking involves assisting customers by engaging in authentic and organic conversations. It simplifies the process for customers, minimizing the amount of steps required to achieve an objective.

To illustrate, banks can simplify the process for customers to compare their choices, rather than having them search through various product pages, account features, and rewards. Customers can be directed to the most appropriate products by asking them a set of pre-programmed questions. Further information on the utilization of WhatsApp and banking chatbots by financial institutions, along with the advantages and applications of these technologies, can be explored here.

As an illustration, Bankia addresses the challenge of customers dealing with intricate personal loans and mortgage offerings by implementing assistance through WhatsApp. Consequently, Bankia witnessed a substantial rise in customer satisfaction leading to an 11% surge in prospective customers.

Simply put, conversational banking provides reassurance and guidance to customers. They have a lower chance of feeling overwhelmed or getting lost in a large amount of information. It is especially crucial during significant occasions, such as the process of creating a new account or requesting a home loan.

Embrace open banking

Individuals anticipate their banks to effortlessly integrate with third-party goods and services. Their desire is to possess the capability to transfer funds to their acquaintances, carry out transactions with other businesses, and obtain increased accessibility to their own financial data.

Banks need to recognize that their customers are integral to a network of interdependent elements. In order to contribute worth, it will be necessary for them to embrace and be receptive to these interconnected environments.

Revolut Ltd is a London-based fintech company from the United Kingdom that provides banking services. Revolut offers various banking services such as bank accounts in GBP and EUR, debit cards, currency exchange without fees, trading stocks, exchanging cryptocurrencies, and making peer-to-peer payments.

Improve the user-friendliness of your mobile application.

Fidelity National Information Services (FIS), a company that collaborates with 50 leading global banks, witnessed a doubling in new registrations for mobile banking during the initial days of April 2020. Additionally, there was a substantial 85% increase in the volume of mobile banking usage.

However, despite the increase in mobile banking usage, numerous customers express dissatisfaction towards their mobile banking applications. The banking apps' functionalities are often criticized for being slow, cumbersome, and sometimes inaccurate.

Based on PYMNTS research, over 33% of participants expressed extreme dissatisfaction with the condition of their mobile banking application. A majority of the survey participants, comprising 60%, expressed their dissatisfaction with the process of adding or removing individuals from their accounts or performing other fundamental tasks, stating that it was not a pleasant experience.

Consequently, banks need to carefully assess the user experience (UX) of their mobile banking applications, instead of being deceived into feeling overly safe. Additionally, it is important to consider the evaluation and measurements of these apps, as there appears to be a discrepancy between the high ratings in app stores and the low levels of customer satisfaction.

Deflect from IVR to digital channels

According to a recent study conducted by Vonage Research, 63% of individuals perceive the process of encountering an Interactive Voice Response (IVR) menu as an unsatisfactory experience. Over half of individuals who encounter an IVR menu give up on the company completely.

In the banking sector, it is a significant matter as the average expense to acquire a customer is approximately $200. Although telephone-based support and automated menus serve a purpose, banks should prioritize redirecting some of these calls to digital channels that have higher net promoter scores. This not only enhances customer satisfaction, but it also enables agents to engage in more valuable conversations.

Customer expectations are rising across all industries, and banking is no exception. People no longer compare their experiences between two competitor banks. Instead, they compare the ease of their experiences across all industries.

Customers now expect the same level of personalization, speed, and convenience from their banks as they do from their streaming or shopping platforms. In effect, companies like Netflix, Amazon, Spotify, and Uber have created a new set of customer expectations.


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