Customer expectations have changed quickly over the last couple of decades, and banking leaders are realizing they need a new approach to meet the expectations of consumers who are used to top-notch experiences – both in-person and digital.
Additionally, the banking industry faces unprecedented competition, fueled by emerging fintech startups, digital banking platforms, and evolving customer preferences. This heightened competition has forced banks to differentiate themselves through the quality of their customer experiences.
Because of all this, global banking leaders have a hyperfocus on improving the customer journey and providing a memorable customer experience. And they see significant results from this strategy:
- Improving CX can increase revenues by up to 15%.
- An increase in customer satisfaction correlates to 15-20% lower costs.
- Customer-centric companies are 60% more profitable than those that aren’t.
What is customer experience in banking?
Forrester defines CX as “how customers perceive their interactions with your company,” going on to say that good customer experiences are:
- Useful: It delivers tangible value to customers.
- Useable: It’s easy to navigate and engage with services.
- Enjoyable: It evokes positive emotions and engagement.
Only your customers can tell you if their experience meets all three criteria.
The second part of the definition focuses on interactions, which Forrester defines as “when you and your customers have a two-way exchange.” An interaction could include navigating your website, talking to a customer service rep, entering a branch, opening an account, or using your app. In each of these interactions, your customer decides whether you meet their needs, are easy to do business with, and are enjoyable to do business with.
Common customer expectations for the digital banking experience
Customers expect seamless, user-friendly experiences that mirror the convenience and efficiency they encounter in other aspects of their digital lives. In all interactions with their bank, they expect intuitive interfaces, quick response times, and personalized solutions.
An important point: Customers expect an excellent experience regardless of the industry. They aren’t just comparing the experience your bank provides to other banks; they’re comparing their experience with your brand to the last best experiences they’ve had.
Top 8 banking customer experience changes for 2024
Banks have mastered the art of the in-person experience. According to BAI, 38% of banking leaders pride themselves on delivering excellent CX face-to-face, but only 11% feel they replicate this excellence online.
In 2024, we will start to see banks focus even more on the digital CX in eight critical ways:
- Personalized experiences. Banks have granular user data down to the individual person, and they can use this data to build personalized experiences. Banks can customize product recommendations, targeted marketing campaigns, and communication channels, which improves customer satisfaction and loyalty.
- Optimize for AI, but value the human touch. Using AI makes content creation and data analysis more efficient, but preserving a human touch in customer interactions is equally crucial. It’s important to incorporate human empathy, understanding, and personalization into each touchpoint to distinguish the bank from competitors, building deeper customer connections and trust.
- Better online and mobile experiences. Improving overall online and mobile experiences is essential for banks to stay competitive. Customers expect sleek, user-friendly designs that prioritize ease of navigation and accessibility. By investing in modern UI/UX design principles and leveraging cutting-edge technologies, banks can deliver digital experiences that align with contemporary user preferences. Providing better online and mobile experiences improves usability and brand perception. It also enables differentiation in an increasingly crowded market.
- Conversational experiences will become the new normal. Customers expect seamless transitions between channels – from phone calls to a chatbot to email – and expect continuity throughout these interactions without losing data or context. This seamless integration of channels ensures a cohesive and frictionless experience for users, allowing them to engage with their bank through their preferred communication method without interruption. Banks can enhance customer satisfaction and streamline processes by embracing conversational interfaces and investing in omnichannel communication strategies.
- Emotional connections will differentiate your brand. Building emotional connections with customers is crucial for brands that want to stay competitive in a crowded market. Banks need to invest in research and data insights to gauge the emotional resonance of their brand with customers. By eliciting positive emotions such as trust, satisfaction, and loyalty, brands can build enduring relationships with customers that aren’t merely transactional. Ultimately, the greater the emotional connection forged with customers, the higher the levels of loyalty and advocacy, solidifying the brand’s position.
- More educated and digitally native customers Modern banking is shaped by an increasingly tech-savvy customer base of more educated and digitally native individuals. These customers are accustomed to seamless digital experiences in every aspect of their digital lives. They also expect banks to meet these standards. Meeting these expectations requires banks to prioritize UI enhancements and offer a range of communication options.
- Enhanced self-service options Long wait times for customer service representatives are no longer acceptable to customers who want immediate solutions to their banking needs. Customers prefer self-service options that empower them to find answers and complete transactions quickly and independently. By offering intuitive and accessible self-service features through digital channels like mobile apps and online banking platforms, banks can meet these expectations.
- Trust and transparency are vital. Trust and transparency are essential pillars for any brand, particularly in the banking sector, where customers trust banks with their financial well-being. In today’s interconnected world, where information is readily accessible, consumers value authenticity and honesty more than ever. Banks must prioritize clear and open communication with their customers to maintain trust and transparency.
How to Improve the Customer Experience in Banking
Improving the CX in banking requires an approach that prioritizes convenience and efficiency. Self-service options empower customers to manage their banking needs independently, reducing wait times and enhancing overall convenience. Banks can offer intuitive tools for account management, bill payments, and fund transfers by investing in user-friendly mobile apps and online banking platforms.
Secondly, modernizing the contact center is essential to meet customers’ evolving needs. Implementing AI-powered chatbots and interactive voice response systems streamlines customer inquiries and support processes. Additionally, integrating omnichannel capabilities ensures seamless transitions between different communication channels, providing a consistent and cohesive customer experience.
Finally, making it easy for customers to access instant help is crucial for addressing urgent concerns and inquiries. Offering round-the-clock support through multiple channels, including phone, chat, and email, enables customers to get timely assistance whenever needed. In 2024, these factors will be instrumental in differentiating a bank’s brand and staying ahead in a competitive market.
Moreover, understanding how customers feel about your brand allows banks to improve and innovate constantly. Collaborating with CSP to gather and deliver actionable insights on the customer experience helps inform strategic decision-making. Banks can demonstrate their commitment to customer satisfaction and foster long-term loyalty by actively listening to customer feedback and implementing necessary changes.
