Welcome to Part 2 of our two-part series examining customer experience in banking, through graphics from the Financial Brand. In Part 1 of this article, we discussed which channels consumers use to research various financial products (or services) and what banks believe the biggest benefits of personalization are. We also looked at why banks struggle to provide an excellent customer experience and examined the gap that exists between banks (who believe they offer an excellent CX) and their customers (who believe the same). In this article, we will take a look at how banks intend to enhance their service, which channels consumers deem most important and why technology has not been more widely implemented to improve CX.
5. Intentions to Enhance Service
On the graph from our previous article, Customer experience excellence: reality vs. perception, we saw how customers and firms rated their customer experience. Here we get a chance to see what financial service providers plan on doing to improve their CX. At the bottom of the list lies social media. Something that, while useful for communicating broad information, does not make for a better experience in banking. Branch transformation, something that has been a focus for decades, also lies near the bottom of the list.
Enhancing mobile and online channels is by far the most common answer. This shows that omnichannel is a growing concern for banking providers. The attention to omnichannel is beginning only after FinTech firms have begun to apply pressure to traditional banking sectors.
The other three most common answers go hand-in-hand with providing an omnichannel experience. Staffing and training, leveraging new technology and providing better support are essential to combating FinTech firms. The reason that mobile and digital channels need more development than the traditional in-branch experience may be due to the decades’ banks have spent trying to perfect the in-branch experience. Digital and mobile channels are still relatively new and need to be improved upon, as they are the greatest strength of most FinTech competitors. This graph provides hope that banks are finally moving to the modern era.
6. Ranking Importance of Customer Experience by Channel
This graph examines how important each channels CX is for banking. It is very clear that in-branch experience and web experience are the most important channels to provide an excellent customer experience in. For now, in-branch banking is the most important delivery channel. This could be for a few reasons, one being that many demographics, such as the elderly, are still far more likely to come into a branch than to use any another channel.
Very few people think that phone banking is the most important channel in regards to experience. However, it holds a very strong number of votes for second and third most important channel. This could be because people still want to talk to a real person if they experience issues with the channel of their choice. Regardless of how much progress digital channels have made over the last decade, people still often feel most comfortable solving their problems with a human.
The seemingly least important channels are those that are accessed via a smartphone or tablet. This might be due to low adoption rates but may be due to the fact that smartphones are not people’s only channel for banking. Perhaps most people use smartphones to check their balances or to transfer money to friends. They are not trying to do complex tasks and therefore, are less concerned about a great CX.
7. Obstacles to Offering a Personalized Customer Experience
So, after we examined how banks and customers think of customer experience in finance, let’s examine what obstacles are in place to determine what is delaying FinServ firms from offering a personalized experience.
The main obstacles appear to be budgets that are not large enough to keep up with the ever-changing regulatory requirements and security concerns. This is par for the course with the industry. Often regulations and security concerns are at the front of most companies minds. Budget constraints come with the territory, as handling security issues can be extremely costly.
Other major obstacles include disjointed business processes, providing omnichannel experiences, outdated technology infrastructure and competition from FinTech providers. Many of these obstacles are issues that banks need to handle internally and have not been because of a lack of budget or leadership.
None of these obstacles should scare financial service providers from adopting more personalized CX, yet they do. Financial service firms need to improve, their viability as stand-alone businesses depend on it.
These graphs conveyed a lot of information about customer experience in banking. The first two graphs showed the perceived importance of improving various channels, both for banks and consumers. Banks plan on improving their mobile and online channels with a secondary focus on providing better training to employees. Customers should appreciate those efforts as they believe in-branch and online experiences are the most important channels in banking.
The final graph shows the challenges faced by banks when trying to offer a more personal experience. Banks have a wide variety of challenges to face, from a lack of funding to a complex regulatory landscape. These challenges will need to be successfully maneuvered in order to offer the personalized experience customers expect.
Did you find these graphs informative? How do you think banking will change over the next few years? Is customer experience the most important aspect of banking? What takeaways can other FinServ firms take from these graphs? Let us know on Twitter @VeridayHQ!