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Amid a sea of change, the importance of customer satisfaction to financial institutions remains a constant. The task has never been easy, but the convergence of technological change, cost-cutting, regulatory upheaval and shifting customer expectations have made it more challenging than ever before. It’s never been more clear that financial institutions will not be insulated from the impacts of 21st century consumerism.
As customer expectations evolve, banks must evolve with them. Doing so will require an intimate understanding of customers’ needs and expectations – their banking habits, preferences, frustrations and desires. This brings a new, more profound meaning to ‘know your customer’. When comparing and contrasting the views of 9,000 banked consumers in 9 countries recently, we found that there is much work to be done. Over three quarters (77%) suggested the performance of their primary banking provider falls short of expectations. In reviewing the results five clear lessons for the sector stood out:
Security, security, security
Consumers want to sleep easy knowing banks can be trusted to protect their assets. Safety and security ranked as their top priority – and yet, globally banks are perceived as falling short on this measure. As banking becomes an increasingly digital proposition, this is one of the most important fundamentals for banks and banking. The importance of doubling down on security cannot be overstated.
The trust issue isn’t going away
The last decade has seen consumer trust in financial institutions hit an all-time low. As we pull away from the most recent global financial crisis, incumbents face the uphill task of overturning the public’s consensus – convincing customers that banks are deserving of consumers’ trust. Perceptions won’t change overnight, but improvements must be made in stimulating a greater sense of fairness, reliability and transparency. Practices from the old banking world, like hidden charges and complex pricing and terms, won’t cut the mustard any more.
Adding value is within reach
Any bank wanting to succeed must establish and nurture a base of engaged customers. While the basics must be met, banks are falling short in areas such as personalisation and helping consumers manage their money – but only marginally. Once a firm foundation is in place, banks will be well equipped to add significant value by anticipating needs and going above and beyond the traditional, transactional remit.
The digital pursuit is paying off
Customers feel connected: they are pleased with the level of accessibility and digital convenience being afforded to them. Banks, then, can be encouraged that their diligent focus in recent years on delivering a more mobile, omnichannel proposition is paying off. But as the latest wave of fintech hopefuls tout marginal improvements on multiple facets of the digital banking experience, consumers’ expectations will be more and more demanding – and banks must continue improving to keep up with the pace.
Significantly, many of the least satisfied customers today will be the most important ones of tomorrow. For banks, a stern challenge lies ahead. Re-examining service delivery and service style will allow them to strengthen on basics – like fairness, security and reliability – before going on to add value through anticipating needs and helping customers proactively manage their finances. Above all, banks that ensure customer satisfaction remains at the centre of their strategy will be well set for success in the years to come.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Alexander Boehm Chief Executive Officer at PayRate42
05 September
Alexander Saleh Head of Partnerships at Coincover
02 September
Alex Kreger Founder & CEO at UXDA
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