69% of customers intending to quit their bank stated that it was due to a lack of service rather than a poor product.
The banking landscape has changed significantly over the past decade. Digitization has improved the banking system and modified the way transactions take place today. A recent report from INC.42 reports that the Indian fintech market is estimated to reach $1.3 Tn by 2025, growing at a CAGR of 31%. Among its main subsectors, loans accounted for 47% or $616 Bn, Insurtech at 26% ($339 Bn), and digital payments at 16% ($208 Bn).
So, we already know that technology continues to disrupt the traditional BFSI industry. With small-ticket and need-based products like travel insurance, electronic financing, buy-now-Pay-later, digital accounts and loyalty + digital platforms like Jupiter and Cred, traditional Banking giants are forced to disrupt themselves.
Today, players like Ofbusiness, KredX and others offer better access to finance with better services than the same old age banks behind. And it’s important to note that service and experience remain key differentiators.
Understanding Customer Expectations in Banking
For a long time, the lack of technology was a major problem for banks. But not anymore. Technology brings various solutions such as online deposits, e-bill payments, digital account transfers, mobile wallets, and the biggest of all UPI, leading to an all-in-one customer convenience, enhanced experience. The biggest indicator of experience is, how many times you have to visit your bank or call the helpline for a problem that has occurred. Over time, customer expectations have increased manifold, which is associated with the time and effort spent on dealing with banking procedures or issues.
Every customer interaction via app, web, bank visit or contact center is an opportunity for organizations to showcase how much they value their customers and are truly committed to offering a high quality service, thus experience.
If we delve into the expectations of customers when they interact with the bank, certain things are clear:
- Customers want to transact quickly and easily, every time they interact with the bank.
- They need access to the right people when they need advice or help. Customers expect open and accessible lines of communication.
- They value a personalized experience based on the customer’s profile.
- Appreciate the ease with which they can manage expenses, payments and multiple banks while managing savings-cum-liabilities.
- They do not like to be sounded or hacked.
Using technology and connected systems to build and improve the Customer Experience
For banks, there is a huge opportunity to personalize customer interactions; the potential of hyper-personality cannot be ignored. A good CX management approach can help fintechs, neobanks and banks to use data and insights to tailor experiences.
If a bank, for example, doesn’t offer multiple communication channels for customers to contact the support team, it can be limiting and can ruin their banking experience. The various touch points at the current time are usually as below:
- Chatbots – They call it the first line of interaction. A well-implemented system is currently able to handle 60-65% of inquiries or concerns directly
- Live chat – If the bot fails to understand or solve the issue right away, a seamless transfer (with intent) to a human via live chat will allow the user to connect immediately and get a solution for the concern.
- telephone – Users with complex problems choose phone support.
- social – Social channels have become very critical where people raise their voices, mostly when they want a quick solution or are hurt or feel insulted
Some of the critical aspects that banks need to pay attention to are – Managing the entire customer life cycle smoothly.
- Manage digital onboarding and accounts, seamlessly. With people like Jupiter, they do a 10-minute account opening procedure. Isn’t this worth the 30 minute drive and 15 minute procedure to open a bank account?
- Allowing customers to manage all their savings, loans, borrowings, spending, trading, digital assets, insurance, multiple accounts etc. under one roof/app/product. Customers need to make informed decisions about their needs and risks.
- As mentioned above, better handle their connection touchpoints. Usually happens when the service or technology in one bank is inferior to another
- Manage the collection in a proper and better way. People do make mistakes, forget too. However, the right way to deal with 99%+ of genuine customers is to include empathy in the collection lifecycle. It should be more about technology to remind, reassure and then follow up with a smoother experience.
Since most of the banks are missing some of the above basics, customers are not inclined to agree with what the organization promises. Therefore, only 37% of customers believe that the bank adequately understands their needs and preferences.
Long journey ahead for Banking in India!
The views expressed above are the author’s own.
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