How to Build Stronger Customer Relationships in Banking

Customer centricity is a business philosophy that prioritizes customer needs in all operations and decision-making, including product delivery, innovation strategies, marketing communications, and financial wellness support for banks and credit unions beyond good customer service.

Fremont, CA: Banks and credit unions are transforming due to macroeconomic volatility, increased competition, technological advancements, and a more demanding consumer. This involves rethinking branch experiences, collaborating with fintech, leveraging data, and enhancing financial wellness. The customer's core business involves regular data collection, analysis, and deployment to provide a 360-degree view of the customer, benefiting banks and credit unions in various ways.

The future of customer-centricity in banking involves a blend of tech and business model transformation, leveraging digital technologies, marketplace collaboration, and data utilization to provide a seamless, personalized, and superior Omni channel experience.

Change Conventional Branches:

Banks and credit unions have been rethinking their branch operations due to the rise of digital banking and the need to reduce operational expenses. Fintech providers have provided a superior digital experience for everyday transactions, leading to a need to reimagine branch functionality. Building a full-service office facility can cost over $1.5 million in the U.S., with an annual operating cost of almost $1 million per branch. Despite these challenges, most consumers still find branches relevant. Branch branches will utilize Omni channel customer relationship management platforms that integrate seamlessly with other digital channels, delivering personalized service and product recommendations.

Establish Mission-driven Fintech Partnerships:

Banks and credit unions partner with fintech firms to cater to a digitally savvy customer base. These partnerships help bridge business model gaps, leveraging strengths and addressing weaknesses. In 2022, seven bank acquisitions of fintech firms occurred; in 2021, eight buy-side bank deals occurred. Fintech collaborations offer innovation opportunities, improved digital account opening processes, enhanced rewards programs, and improved mobile banking experiences.

Assist customers with their financial wellness journeys:

Consumers seek ways to improve their financial wellness as the economy becomes less predictable and cost-of-living pressures rise. Banks and credit unions are well-positioned to assist consumers in making informed financial decisions, as they have access to data and analytics to understand consumer behavior and needs. They can develop targeted financial wellness programs and resources, such as mobile banking apps and online financial management tools. Retail banks are also exploring fintech partnerships to enhance their offerings, as 63% of U.S. customers would switch banks if not supported, and 78% would stay if supported.

Choose an "Owner" for Your Customer Engagement:

Customer engagement is crucial for a more robust, sustainable relationship between a customer and a brand. It involves ongoing communication and commitment to meeting evolving needs. The Chief Marketing Officer (CMO) persona can leverage data, artificial intelligence, and analytics tools to create personalized products and solutions with Omni channel visibility. This approach allows recurring customer interactions and more excellent user-level data, leading to a more compelling customer experience.