• Terry Kuester, VP of the FSI Consulting and Banking Industry at NTT DATA Services


• 03.02.2022 07:45 am
#banking #fast #secure , He is an experienced financial services executive with a proven track record of growing profitable revenue for both clients and managed businesses. Before joining NTT DATA, Terry was a Division President for two publicly traded companies and the Partner and Practice Leader in a large global consulting firm. Terry’s industry insight, leadership experience, and sales knowledge make him a trusted thought leader, teaching financial institutions how to grow businesses and drive long-term value.

In 2020, customers began relying on digital-first experiences to make remote banking fast, secure, and painless. Previously loyal customers lost patience over lengthy phone calls and complicated paperwork. In response, innovative competitors rushed in with technologies that made customers’ lives easier. 

As a result, traditional banking, wealth management, and capital market companies failing to modernize risk more than just their time; they virtually guarantee losing customers, revenue, and reputation.

So, how can financial institutions keep up with evolving demands? One way is by reconfiguring strategies to focus on customer experiences rather than products. Customer experience should be a top priority for financial institutions and banks keeping up with a landscape where customers are loyal to experiences, not banks.

What’s stopping providers from delivering better customer experiences?

Recently, an NTT DATA and Oxford Economics survey found that two-thirds of financial services executives feel customer wants and needs are changing too rapidly to deliver positive experiences, which is likely why just 39% indicated above-average customer satisfaction. Financial services respondents identified customer satisfaction as a primary driving force of organizational strategy. They believe product and service quality (50%), digital experiences (45%), and flexible services (42%) are the most important factors to consider when determining how to provide value to customers.

How can providers prioritize customer experiences?

Financial services executives should focus on technology investments, workforce needs, and strategy because these efforts pay off. Surprisingly, only 6% of finance executives have invested inAI, developed culture and organizational purpose for their workers, and ensured strategic and operational changes put customers first.

Most of these executives can keep up with rapid changes in data regulation. In addition, some of these executives report substantial revenue growth and are more likely to provide higher quality products and services.

What do customers expect from banks?

Customers expect more from financial institutions than ever before between high-quality customer service, low fees, security and fraud protection, and mobile and online access. They also want banks to be socially responsible, support and advise them through financial hardships, and contribute to the community. 

What makes a positive customer experience?

According to research, “… nearly 80% of American consumers say that speed, convenience, knowledgeable help, and friendly service are the most important elements of a positive customer experience.” Below are four pillars that can help meet these primary needs and deliver a positive digitized banking experience.

1. Accessibility — Organizations delivering digital-first experiences often classify web accessibility as a compliance requirement, but things are changing. Accessibility is an essential component of a user experience. Providers that offer customers an omnichannel, mobile-friendly experience will win in the market. Accessibility impacts customer retention, and even a 5% increase in retention rates can increase profits up to 95%. An accessible website or app uses interactive features that everyone can access, including those with limited internet bandwidth or those hard of hearing or sight. This can help reach a wider audience, build positive public relations, improve market penetration, and help grow business.

2. Instantaneous Assistance — Many banks are implementing AI chatbots that answer customer queries in seconds and escalate to an agent when necessary. Customers no longer accept long waits on the phone. According to the FinTech Times, customer service is the single most significant factor likely to increase spending on banking. Moreover, 32% of all customers would stop doing business with a brand they loved after one bad experience. Live 24/7 support for website visitors enables quick resolutions and better experiences.

3. Personalized Services —Banks previously saw personalized products, services, and experiences as a “nice-to-have” for customers. But personalization and anticipating customer needs is imperative amid digital acceleration and evolving expectations. New technologies allow institutions to gather customer insights and deliver personalized experiences while maintaining privacy and security. Personalization is a differentiator that contributes to higher engagement, enhanced customer experience, and a substantial ROI. Organizations investing in data collection, data mining, AI/ML, data scientists, and technology consulting services tailor customer journeys for their unique users.

4. Data Security and Privacy — Account takeovers, data breaches, and financial crimes are rising, and customers want to feel secure with their banks. As a result, a necessary trade-off happens regarding hyper-personalization and security. Financial services providers must protect customer information, follow regulations, and mitigate risks, while simultaneously leveraging insights to improve. The best customer experience is safe, secure, and seamless.

Financial organizations that build the foundational components of CX can deliver the speed, convenience, help, and delightful service that customers expect. An effective strategy should start with customer-centric goals, expert consulting, advanced technology, and partnerships that move from strategy to implementation and operation.