With the advent of several fintech and non-banking start-ups, there is mounting pressure over banking and financial services (BFSI) industry to rethink their customer experience strategies. In this blog we are going to look at the recent challenges faced by the banks and what they can do to solve them.
Challenges faced by Banks
Today’s consumer is smart, tech savvy and mobile friendly with digital sources of information at hand. The upcoming fintechs and non-banking startups pose a challenge to the way traditional banks operate, while customer expectations evolve sooner than they are documented. On the other hand, as the understanding of technology improves, banking customer demographics change with customers expecting for more sophisticated experiences.
In the wake of this, it has been reported that millennia’s prefer to interact with a brand more digitally than visiting a physical branch as was preferred by their previous generations. There is no denying the fact that with the upcoming Gen Z, banks should expect a surge in demand for more technology-driven, omni-channel customer experiences.
CCM improvising Customer Experience Challenges in Banking Sector
With that stated, how about we take a closer look at some of the customer experience challenges that banks need to address soon:
Majority banks face a challenge in reducing their customer churn due to not being able to deliver meaningful and personalized experiences. Retaining a customer is subject to their loyalty which in turn depends on their experience when interacting with your brand. Lack of technology based intuitive, user friendly and simple banking solutions becomes a major cause for customers who switch brands sooner than expected.
One of the most over-looked challenges that banking customers face is friction in their processes. They do not appreciate when asked for too much information or if the on-boarding process is time consuming. Especially, manually entering customer data which could be eliminated with self service capability to scan customer ID to fetch relevant data from it.
Data breaches and Privacy concerns
Even though some banks are offering digital on-boarding options to their customers, safety and compliance remains a touchy subject. Data breaches and privacy concerns must be resolved with high encryption platforms or two-factor authentication access features that help to develop trust and satisfaction in customers mind for your brand’s services and solutions.
Banks are always struggling to collate customer specific data because they are often swinging from collecting too much information to not having enough customer data to serve them properly. This challenge results from an inefficient data management where your source systems are not integrated and hence your customer’s experience suffers.
Account based view and core needs
Most banks engage with their customers treating them as just accounts which needs to change. Customers want fully personalized communications that are relevant, convenient and treat them as individuals. Addressing your customers’ core needs with integrated solutions goes long way in improving the experience you deliver. For example, when offering a property buying solution to a customer, you could include mortgage, coverage for home insurance and furnishings loan along with access to wellness services.
Customers share their data with an expectation of receiving relevant offers, advice, or deals. If your communications are not able to meet such customer needs, then they are willing to go to someone who does. You decide!
Omni channel experience
We saved this one to talk about in the end. Why do you think brands in other industries are working towards integrating their physical and digital channels? Banking customers expect the same. They want to be able to switch seamlessly between channels without the need to revisit the whole conversation. Is your brand offering such an omni-channel experience?
Customer Communication Management (CCM) Solutions For Banks
How Customer Communications Management (CCM) can help overcome these challenges?
In the previous section, we talked about the challenges that banks are facing and with the rapid technological shifts, 2021 is the year you need to take a firm step towards overcoming them.
With the right guidance and platform, implementing a CCM solution can do wonders for your brand. But before you say How?
Let us understand what you will get with a right Customer Communications Management platform:
- Customer On–boarding made easier
Make you existing on-boarding formalities like KYC, document verification and more, simpler and less time consuming. Accelerate your process with virtual/video KYC solution at the customer’s convenience.
2. Using Bots to automate communications
An ideal CCM solution like ours integrates with chatbots to help you deliver efficient customer support and services. Customers do not want to engage with a human agent or visit a physical branch, in that case banks can use chatbots for delivering superior customer experiences via mobile banking, net banking, web-chat, live chat, on Facebook, Twitter, and WhatsApp. It helps reduce backlogs and attend to customer timely.
3. Customer self-service capability
Gone are the days when there used to be long waiting queues outside bank branches. With a CCM platform, empower your customers with self-service capabilities to resolve routine questions via self-serving IVR, intelligent automatic routing, Automatic Call Distributor (ACD) etc.; and improve your customer’s satisfaction.
4. Make contextual conversations
With a single platform where you can track and manage all customer communications like recent transactions, conversation history, campaigns, etc. can help you communicate with your customers more contextually and serve them effectively.
5. Keep your database updated
A CCM hub integrates with your source systems to help you create hyper-personalized communications enriched with customer-specific data in real-time. Banks get a 360-degree view of each customer with in-depth understanding of your customer’s preferences for delivering an enhanced customer experience.
With FCI’s CCM as-a-service, banks and financial services industry carry a chance to not only get all these benefits but more. We help clients switch to digital operations and deliver hyper-personalized communications with an Omni-channel approach.