The banking sector is under immense pressure to improve customer experience. 86% of customers say they would leave their bank if it failed to meet their needs, according to a study by PwC. With new fintech and digital challengers shaking up the status quo, banks are being forced to re-evaluate how they deliver the experience. Here are five customer experience trends banks should watch out for in 2023 and beyond.
1. Support digital payments
A recent study by Boston Consulting Group found that 43 percent of customers would leave their bank if it failed to provide an excellent digital experience. This is not surprising, given that customers now expect the same level of convenience and customer service from their bank as they do from other online retailers. A seamless digital payment experience has many benefits for both banks and customers. For banks, it can lead to increased customer satisfaction and loyalty and higher profits. BCG’s study found that banks that excel at providing a seamless digital experience generate 10 percent more revenue than their peers. Banks must provide seamless, secure, and transparent digital payments.
2. Collaborate with fintech
Fintech is playing an important role in shaping the future of banking, and many are focused on delivering improved customer experiences. Banks need to collaborate with fintech to tap into their innovative technologies and enhance the customer experience they offer. By collaborating with fintech, banks can gain access to new technologies, reach new customers, reduce costs, and improve efficiencies.
There are a few different ways that banks can collaborate with fintech. One way is to invest in fintech companies. This allows banks to gain an equity stake in the company and gives them a say in its operations. Another way to collaborate with fintech is to partner with them on specific projects. This allows banks to tap into the fintech’s expertise without taking on any financial risk. Finally, banks can use the products and services offered by fintech companies. This allows banks to take advantage of the latest technologies without making a long-term commitment.
3. Focus on hyper-personalization
Banks need to focus on delivering personalized experiences that meet each customer’s unique needs. This can be achieved through data-driven insights that allow banks to understand their customers better and anticipate their needs. By understanding the customer journey and utilizing customer data, they can create meaningful interactions that will result in long-term loyalty.
By leveraging customer data, banks can develop a deeper understanding of their needs and preferences. This understanding can be used to deliver tailored solutions that meet each customer’s specific needs.
Delivering personalized experiences is not a one-time event; it requires a holistic approach considering all touchpoints in the customer journey. From the initial interaction with the bank through post-purchase follow-up, every touchpoint should be designed with the customer in mind. Banks can ensure that every customer interaction is personal and relevant by taking a holistic approach.
4. Uncover data and AI opportunities
Data and AI can be used to power personalization efforts and drive operational efficiencies. Banks should look for opportunities to leverage data and AI across the customer journey, from acquisition to retention.
Banks collect data from various sources, including customer transactions, account activities, and credit reports. This data provides valuable insights into customer behavior and can be used to develop targeted marketing campaigns, improve product offerings, and much more. When used effectively, data-driven insights can help banks deliver the personalized experiences that today’s customers demand.
Data and AI can also be used to drive operational efficiencies. For example, using AI-powered chatbots, banks can provide 24/7 customer support with minimal human intervention. Additionally, data can streamline processes such as loan approvals and fraud detection. By leveraging data and AI, banks can free up resources that can be better used elsewhere.
Data and AI can be used to improve customer retention rates. By leveraging data analytics, banks can better understand customer behavior and identify at-risk customers
5. Making green finance a priority
As sustainability becomes an increasingly important issue for consumers, it’s more important than ever for banks to consider making green finance a priority. Not only is it a great way to appeal to eco-conscious customers, but it’s also a way for banks to show that they are responsible corporate citizens who care about our planet’s future. There are several ways for banks to get involved in green finance, such as offering green loans or investing in environmentally focused companies or funds. By taking advantage of these opportunities, banks can position themselves as leaders in the fight against climate change while also making a positive return on investment
Security will become a bigger priority in 2023 as banks collect increasingly sensitive customer data. Banks must invest in robust security systems and processes to protect customer data and ensure that staff is trained in best practices while handling sensitive information.
To meet the needs of tomorrow’s digital consumer, banks must start rethinking their customer experience today. With new fintech and digital challengers changing the landscape, banks can no longer afford to fall behind. They can ensure they are prepared for 2023 and beyond by keeping an eye on these five customer experience trends. If you’re looking for help improving your customer journey and experience, Quinnox is here to help. We specialize in delivering cutting-edge software solutions tailored to meet the unique needs of our clients in the banking sector. Contact us today to learn more about how we can help you improve your customer experience.