Customer engagement key differentiator for banks as total redress payments increase

Customer engagement key differentiator for banks as total redress payments increase
18.04.2019 11:01 am

Customer engagement key differentiator for banks as total redress payments increase

Banking , Infrastructure

Statistics from the recent FCA complaints handling report show that the total redress paid to consumers was £2.26 billion, 12% (£216 million) increase compared to £2.57 billion in 2018 this time last year.

This news comes after Gartner stated that over the next 12 years, 80 per cent of traditional banking firms will either go out of business or be rendered obsolete by new competition, changing consumer behaviour, and advancements in technology.

As agile challenger banks and fintechs threaten the market share of traditional banks, customer retention is top of mind for bank executives. Banks need to ensure their future business operations are directly aligned with the needs of the customer, according to business process management experts at Signavio.

Dr Gero Decker, CEO and Co-founder at Signavio comments: “Customer experience is the new battleground for the financial services sector. By embracing the customer journey as a strategic and creative imperative, banks can drive digital transformation, optimise operations and stay competitive.”

Dr Decker continues: “One way to approach this is through customer journey mapping; a system which captures each touch point and moment of truth of customer interaction. This then allows banks to better understand a customer’s motivations or frustrations. Even more importantly, this holistic overview enables financial institutions to constantly evolve their processes in order to deliver the desired customer experience at scale.”

 “As financial institutions transform their operations, customer journey mapping forces them to consider each element of their business from the end-user perspective. This engagement also empowers companies to move away from lopsided efficiency goals, which often frustrate customers. Instead, they can adopt a more holistic approach to reaching strategic business outcomes which are built around the consumer.”

Related News

UBX opts Temenos to transform banking in the Philippines

Temenos (SIX: TEMN), the global banking software company, today announced a partnership with UBX, the fintech subsidiary of UnionBank of the Philippines, the seventh-largest... Read more »

Wari Integrates with WhatsApp to Enable Customers Request Financial Services

More than 1-billion people in over 180 countries use WhatsApp to stay in touch with friends and family, anytime and anywhere. It is this very reason that has driven ... Read more »

Khaleeji Commercial Bank Fully Compliant with the Central Bank of Bahrain’s Open Banking Directives

 Khaleeji Commercial Bank (KHCB), one of the leading Islamic banks in Bahrain, has officially announced its readiness for open banking services today, making it the first bank... Read more »

Cryptomathic Announces Acquisition of Aconite Technology

Cryptomathic, the global specialist in secure server and payments solutions, today announces the strategic acquisition of end-to-end EMV® card lifecycle, transaction processing... Read more »

Finastra’s open cloud platform drives collaboration and innovation in financial services

Today ahead of its FusionONE developer conference, co-hosted with Microsoft, ... Read more »

Redwood Bank Becomes the 31st Bank to Join Flagstone

Redwood Bank, which focuses on small and medium-sized businesses in the UK, has become the latest challenger bank to join Flagstone’s cash deposit platform. Flagstone’s SME... Read more »

Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel