• Andrew Stevens, Banking Expert at Quadient


• 02.08.2019 11:30 am
Banks , Customer experience

Our relationship with money has changed dramatically in the last decade. For a long time the relationship was stable – people paid with cash, cheques or later cards, and had most of their interactions with a bank in-branch. This was reflected in the limited choice of banks available to consumers, as when Metro Bank opened, it was in fact the UK’s first new high street bank for more than 100 years.

Now the industry is digitally transforming, however, with app-based challenger banks such as Starling building solid customer bases, and digital payments soaring. Consumers are welcoming these changes and embracing innovations in banking experience, from phone notifications to confirm purchases to instantly transferring funds to a friend with a few taps.

Branching out into digital

This digital approach to money is already showing an impact. More than one in ten UK adults no longer use cash, while many people report that visiting bank branches is an archaic experience. As a result, the traditional branch-centric approach to customer experience is becoming increasingly outdated. As the very nature of banking continues to shift, banks simply cannot afford to leave their customer experience unchanged, and must embrace digital channels.

Any banks who think customers will settle for a sub-par experience just because they are new to digital communication are sorely mistaken. From their point of view, experience should be getting better, not worse, in this new digital world – a banking app or social media channel experience must be at least as good as in-branch. If this expectation isn’t met, customers – who have become increasingly powerful in their relationship with businesses – will simply leave. With initiatives such as the current account switch guarantee actively encouraging consumers to make the move, the risk to banks is very real.

Not every customer will want to be part of the digital revolution, of course, so while ‘digital first’ is definitely the way forward, to go ‘digital only’ would be a mistake. Some account holders will always want to visit branches and receive paper statements, and these wishes must be respected. Banks must be able to strike the right balance and provide an omnichannel customer experience, guaranteeing a consistent experience however their customers want to interact. That is easier said than done, of course, so exactly how can banks guarantee a great customer experience across a number of channels?

Key to omnichannel CX: Breaking down silo walls

Talking about siloes is often regarded as a business cliché, but they can pose a very real problem to customer experience. Many organisations’ approach amounts to tacking on support for a new channel – for instance WhatsApp – on top of what already exists, without integrating into the wider ecosystem. The ultimate result is a mixture of independent channels, all interacting differently with bank systems and data, and all providing a wildly varying experience. For example, customers may be unable to easily gain access to important information or share details across every channel – whether looking up their recent transactions or reporting a change of address.

The good news is that banks don’t need to knock down existing infrastructure, as it is possible to unite disparate systems by laying a single platform across the top. This will connect data sources and other systems with individual communication channels – providing an opportunity to look at everything in a unified way and make sure they put customer experience first when new channels and features are integrated in the future.

Going the extra mile

Cash payments will doubtless continue to decline, under-used branches will continue to close and the digital channels customers favour will keep changing. The banks that will come out on top in this environment will be the ones that can guarantee the customer experience across multiple channels, keeping their entire customer base happy. This means adopting cutting-edge platforms to keep tech-savvy account holders happy, while also providing assistance and education – as Barclays has – for those not totally confident leaving traditional banking behind. By providing a smooth omnichannel experience catering to all, they will be able to prevent CX from being damaged while maintaining and growing their customer base.