Traditional banks are still fighting consumer perceptions that they do not prioritize the customer experience. To thrive in the new normal, banks will need to do more than just provide excellent customer service – they will need to find innovative ways to revolutionize the customer experience.
Fremont, CA: The pandemic has exacerbated the problems that traditional banks have been grappling with for years. The most important of these is determining how to profit from consumer banking while providing an excellent customer experience.
Retail banking has become a highly competitive industry as a result of the open banking revolution. There is a high demand for digital, user-friendly services and quick processing of important documents such as mortgage applications. People are more than willing to seek out alternative services if they believe they are not receiving the best service from their bank.
We are only going to see these trends accelerate as the pandemic begins to wind down.
More Focus on Customer Experience
Traditional banks are still fighting consumer perceptions that they do not prioritize the customer experience. To thrive in the new normal, banks will need to do more than just provide excellent customer service – they will need to find innovative ways to revolutionize the customer experience.
People want simple ways to manage their finances. They want applications. They want individualized services and banks that are approachable rather than intimidating.
Savvy banks are already investigating ways to use automation and artificial intelligence to improve the customer and employee experience. They are beginning to use automated services to assist customers in self-service, freeing up their teams to focus on where their skills can add the most value to the customers.
The best way to accomplish this is to begin thinking "customer-first." Banks that continue to produce the same old mortgage products, for example, will be at a competitive disadvantage to those that establish a service that guides customers through the various stages of purchasing a home and use AI to provide instant approvals on large financial decisions. One is about selling a product, while the other is about becoming a part of a customer's life journey.
Increased Competition in the Banking Sector
What is clear is that banks can no longer rest on their laurels; they must compete to attract and retain customers. With the introduction of open banking, the rise of digital-native challenger banks, and the entry of tech companies into the payments business, traditional banks are operating in a more competitive environment.
Payment services provided by companies such as Amazon, Apple, Google, Venmo, and PayPal are not only available on people's phones but are also simple to use with the click of a button on a website or app – rather than the hassle of finding one's bank card and typing in the details while on the go.
Banks that use technology to make financial management easier across the board will be better positioned to compete with these challenges.
