Competition in the banking industry is set to become even more intense, requiring traditional banks to focus on providing an exceptional customer experience, according to a recent report by Info-Tech Research Group. The Next-Generation Customer Experience in Retail Banking offers guidance on how banks can tackle industry challenges, succeed in a competitive market, and deliver outstanding customer experiences.
"Most banks are involved in various transformation initiatives, primarily enhancing digital capabilities. When we look at the root issues driving the need for transformation, most can be tied back to the need for a more effective overall customer experience (CX) while engaging with their bank. Truly delivering a next-generation CX requires changes throughout the entire organization, which means changes to people, processes, and technology," says David Tomljenovic, research head of Financial Services at Info-Tech Research Group.
Traditional banks face unique challenges due to the absence of comprehensive, insightful data sets and the growing presence of non-financial and neo-bank competitors who specifically target dissatisfied customers. These challenges underscore the importance for traditional banks to embrace agile practices and establish a strong partnership between their IT departments and the business.
According to Info-Tech's blueprint, banks need to develop a thorough understanding of their customers from all angles, known as a 360-degree view. This requires a strong foundation built on effective data practices, including data discovery, governance, and management. To thrive in the current highly competitive landscape, the firm advises banks to prioritize the following key activities:
-
Improve customer experience: Retaining and attracting customers should be a top priority for banks.
-
Prioritize human capital: Building an efficient team is crucial for streamlining processes and should not be underestimated.
-
Provide 24/7 real-time service: Meeting customer expectations for adaptable service available round the clock is essential.
-
Adopt an omnichannel approach: Customizing highly automated services to cater to customer preferences across all channels is key to meeting customer demands.
-
Build customer trust: A long-term relationship based on trust and reliability is fundamental to overall success.
-
Foster organizational commitment: Banks must align their people, processes, and technology to drive innovation and maintain service quality.
Info-Tech's research also emphasizes that in modern retail banking, the primary objective of a revamped customer experience (CX) is to guarantee fast, relevant, and personalized interactions across all channels. The aim is to foster a stronger connection between customers and their banks, leaving them with a positive impression.
