Analyses how financial institutions are working to close customer expectation gap and how experience leaders are outpacing their competitors
India, Bangalore, 14 November, 2022: Genesys®, a global cloud leader in experience orchestration, announces the release of “The Challenge of Customer-Centric Banking,” a research report conducted by FT Longitude and supported by Genesys. According to the report, financial institutions leading in delivering high-quality customer experiences are more successful at acquiring new customers, retaining talent and achieving their financial goals. It turns out that better customer experience strategies aren’t just a boon for banks but are associated with better business results.
Consumers have come to expect more from their experiences with organisations across every industry, and banks are no exception. According to the report, 61% of banking executives say expectations for customer experience are continuing to rise, and nearly half (45%) admit they are struggling to keep up. But in today’s experience economy, banks can’t risk missing those expectations. From attracting and retaining both customers and employees, to increasing brand reputation, to meeting financial goals, banks getting customer experience right are outpacing their competitors, proving that when it comes to people and business results, experience matters.
The window to evolve customer experience strategies and integrate the capabilities that can deliver those experiences accelerates as concerns of a recession increase. Nearly three-quarters (72%) of Customer Experience Leaders shared that personalised services become even more in demand during times of financial crisis, as consumers’ financial worries grow. Unfortunately, half of banks reported being unprepared for the impact a recession would have on their customer service. And, with 60% of banks concerned that a downturn would halt their digital expansion, the urgency to evolve their strategies accelerates.
“With so much economic uncertainty, the ability to provide consumers personalised financial experiences has exponentially increased in importance,” said Janelle Dieken, Senior Vice President at Genesys. “We already see the considerable impact great experiences are having on banks’ business results. Those that are able to deliver the engagement their customers need, no matter the landscape, will significantly differentiate themselves. For their customers and their bottom line, investing in the future of customer experience isn’t something banks can afford to miss out on.”
Examining how banks approach customer experience, the study found Customer Experience Leaders have advanced their strategies by focusing on personalisation and innovation and building trust, placing them ahead of their competitors in many aspects, including:
Tailoring products and services to the real-time needs and life stages of their customers in higher rates (38% compared with 26%)
More frequently matching advisors to the right customers (45% compared with 26%)
Being twice as likely to be available on the channel customers want, when they want it (49% compared with 25%)
Using individual data patterns to drive offers or experiences (39% compared with 24%)
Other highlighted findings from the report include:
The future of banking experiences means the redesign of physical banking locations. To provide richer experiences based on the needs of their customers, Customer Experience Leaders anticipate physical locations to be redesigned into financial strategy centres. This means fewer banking transactions and more coaching and financial advice personalised to the customer. Nearly half (44%) of banking executives see this as the greatest opportunity to transform the customer experience in the coming years.
When it comes to the banking customer experience, money isn’t an issue — siloed data and low employee engagement are. Nearly two-thirds (64%) of respondents believe the biggest obstacle in providing consumers the experiences they expect are the internal silos that prevent integrated views of their journeys. Coming in second: high turnover and low engagement among customer-facing employees (48%). Lack of budget was the least concerning issue (6%).
Investing in technology that increases personalisation is the most important priority for improving customer experience but delivering on its promise has been complicated. With 72% of Customer Experience Leaders saying that more personalisation leads to greater customer loyalty, it’s not surprising that investing in new technologies that make personalisation possible is seen as the most important step to improving customer experience in the coming years. Delivering experiences that feel genuine will be the differentiator: 54% believe consumers see their attempt at personalised services as generic. Ensuring the technology enables them to do so ethically and meet government regulations is equally at play, an obstacle for the personalisation goals of 49% of banks.