• Mary Lou Joseph, Director of Content Marketing at Verint


• 11.12.2023 07:45 am
#banking #transformation

In the rapidly evolving landscape of the banking industry, customer-centricity has become a core principle for success. In fact, 77 percent of businesses say consumer expectations for effectively engaging with them digitally have increased over the past 12 months, up more than 10 percent from a similar survey conducted by Verint just last year.  Banks are recognizing the importance of understanding the difference in customer expectations and preferences by channel to stay competitive and retain their client base. This article explores the significance of customer-centricity across all channels – both physical and digital, examines how banks are adapting to be more responsive to customer demands, and discusses the pivotal role of technology in transforming the banking experience. 

The Changing Face of Banking

Traditionally, bank branches served as customer service centers where transactions were conducted, accounts were opened, and financial matters were discussed. However, the digital transformation in the banking industry has shifted these dynamics. Consumers are increasingly turning to digital channels for their banking needs, reducing the necessity for in-person interactions. According to Verint’s Experience Index (VXI) Banking report, 53 percent of consumers now use digital channels for transactions, while just 23 percent visit a physical branch.
Still, in-person banking remains relevant. Convenience remains a top priority, with 37% of customer journeys concluding in person, indicating that local branch accessibility is vital when choosing a bank. Customers, especially older generations, still seek human interaction for complex issues and expert guidance.

Branch Transformation

To adapt to changing customer expectations, banks must reimagine the role of the branch. Rather than simply transaction centers, branches can transform into customer engagement centers. These centers should seamlessly integrate with other digital channels to offer a consistent customer experience.
Moreover, younger generations, such as Generation Z and Millennials, need help with more complex financial management, including budgeting and cost-cutting. 
Digital tools and apps can play a crucial role in this effort but combining these with in-person or video chat support can provide a more comprehensive support system and build stronger relationships with these tech-savvy younger consumers.

Providing a High-End Customer Experience

To meet customer expectations for more personalized experiences, banks can take inspiration from high-end retailers Banks can offer one-on-one appointments, personalized communications, and regular feedback to improve their services.
To provide such a luxury experience, banks can implement features such as online appointment booking, digital check-ins, and queue reservations. These innovations respect customers' time, provide transparency into wait times, and enable bankers to prepare for meetings. Personalization is key to making customers feel known and valued.

Technology: A Catalyst for Customer-Centricity

Here are three ways that banks can leverage technology to build a better banking experience. 
Reshaping the Workforce: As banks transition to engagement centers, employees need to be retrained to support customers' evolving needs and preferences. This includes understanding and explaining the bank’s digital capabilities and offering expert advice and guidance.
Gathering Customer Feedback: Creating a continuous feedback loop allows banks to collect real-time responses from customers, enabling them to refine their services and address issues promptly. This feedback-driven approach ensures banks can adapt quickly and stay aligned with customer expectations and needs. By actively capturing customer feedback through surveys, and other interactive tools as well as passively capturing feedback through speech, text, and interaction analytics, organizations can gain a better understanding of customer intent across all digital, voice, and in-person channels.
Connecting Customer Journeys: Modern customer journeys span various channels, with customers often starting digitally and concluding in person. To provide a seamless experience, banks must remove data and organizational silos that inhibit customer data availability across all channels. This connected approach is vital to support personalized and consistent customer experiences.

Banks Are at the Customer Experience Crossroads

Banks are at a crossroads in their journey towards customer-centricity. As they adapt to changing customer needs, they must leverage technology to provide a seamless and personalized experience across all touchpoints. The transformation of bank branches into customer engagement centers is a vital step in this evolution. By combining digital convenience with human interaction and real-time customer insights, banks can create a financial experience that meets and exceeds customer demands. In this era of digital innovation, customer-centricity and technology integration are key to a successful and customer-focused future for the banking industry.