An ever-changing landscape with increasing competition and new technologies forces all industries to transform but now we are on the cusp of a new era in one of the most traditional businesses.
What will the banking customer experience be like in 2023? This is a question that every bank must answer. CX will drive the future of banking. This means that banks must focus on providing the best possible experience to their clients.
Knowing the trends in banking for 2023 allows all bank brands to build better products and features designed to meet customers’ most significant needs, all while making timely adjustments that produce better results. It’s estimated that delivering a better customer experience (CX) receives twice as many recommendations, and people are also two times more likely to try new products or services.
Before going over some of the CX trends that will shape the future of financial institutions, it would be great to remember that this world is often known to be slow to change or follow updates, so the faster you adapt, the easier it will be to stand out.
Here are some of the CX trends and what all banks need to be doing by the following year; let's take a look!
Branches will change their roles
In addition to the changes in interaction formats that occur naturally due to technological advances, COVID-19 helped people prefer to only go to branches and carry out face-to-face procedures for very special reasons and not for routine banking needs such as starting an account or collecting money.
Months after the mandatory restrictions due to the pandemic, virtual contact continues to be the protagonist and will be the means to form a meaningful relationship with customers.
Although, this doesn’t mean they’re ready to go fully digital and not value humane treatment. According to Stephen K Griffin, SVP and director of the Retail Distribution Planning Group at Regions Bank, 58% of 18-34 year-olds and 54% of those in the 45-54 age bracket said they would go to the branch for advice.
With the above in mind, many users want access to branches and in-person assistance to solve particular problems. Having a hybrid synched system is the only way to ensure a great experience across all customer demographics. If not, migrating to a competitor that offers such experiences will be inevitable.
Banks have to train a new type of employee, one that can act as a universal banker and perform various tasks depending on each customer's needs.
Uncover Data and AI Opportunities
By recognizing past interactions and predicting future needs, banks often increase sales and engagement, which increases revenue.
Most banks already use data analysis to optimize performance or tap new markets. However, clients need digital and real-time integrated solutions and support from assistance to financial transactions.
Achieve an excellent customer experience or CX includes, among several elements, reducing waiting times and guiding decision-making. People react extremely well to short holding times when calling customer service and prompt email replies. Are you not one of them?
So, AI (Artificial Intelligence) technologies and solutions should also be used to lower the bank-costs through increased automation and provide personalized offers. The adoption of real-time technologies is projected to be a superb way to boost the complete customer experience journey.
Increased use of technology and self-serve alternatives
More and more people are using their mobile devices as their primary means of accessing banking services. As such, banks need to provide a well-designed and user-friendly mobile experience.
This trend is only set to continue in the future, so keeping up with the latest technology to provide self-sufficient experiences for their customers will be essential.
The 2022 Digital-First Customer Experience Report made with consumers and senior decision makers across the U.S. and U.K. reveals:
- 53% of businesses believe their customers are delighted with their self-service offerings, but only 15% of consumers agree.
- Also, 36% of consumers want more innovative self-service, but only 11% of businesses prioritise it.
- And the discrepancies continued with the chat when 52% of consumers said their preferred digital offering, but only 31% of businesses currently offer it.
These gaps between what customers think about their support journeys and how seriously business leaders are taking their expectations can be solved only if your business is listening. Is it? Because 57% of consumers will abandon a brand after only one or two negative interactions.
Having a tool that allows you to measure consumer sentiment and other markers you use to track customer satisfaction can be a great way to stay on track.
Focus on hyper-personalization and brand loyalty.
These digital interactions we reviewed have to be highly personalized. Having functional channels that provide value to customers is also critical for a positive experience.
Do you know your customers? Do you know what your customers know? Consumers are more likely to shop -products or services- from brands that recognize, remember, and provide relevant offers and recommendations. Also, according to Gartner, they are more likely to spend around 140% more on companies that offer a great experience.
Digital personalization can help financial institutions improve their CX while meeting the growing demand. The benefit for the bank’s client is a highly appropriate level of service that creates loyalty, and for that bank's interfaces must remain at the forefront.
Consistent Omni-Channel Services
We now understand that the key to success is to unlock the information embedded within internal and external data to get a clearer picture of the client's needs and expectations.
Here are some of this year's Customer Retention Statistics stats:
- Businesses miss out on $1.6 trillion from losing customers to a competitor
- Acquiring new customers costs 5 times as much as retaining existing ones
- It costs 16 times more to build a long-term relationship with a new client, compared to keeping existing
In addition, more than half of consumers expect a response from customer service within an hour, even on weekends, and according to the above information, replies have to be not only relevant but accurate. There is nothing more convenient for a customer than to communicate with a business through Omni-channels: Apps, e-mails, Whatsapp messages, website chat, video appointment calls, by phone, or face-to-face.
In conclusion, meeting customer expectations will be increasingly difficult without a complete system in your operations.
Executives at financial institutions of all sizes ranked their progress with digital transformation as only 58 on a scale of 0-100, according to research by Alkami Technology. They shared that one of digital banking transformation's most important strategic priorities is optimizing processes and operations.
So, how will banks make these changes and bring customers closer while transforming the business?
Keeping up with the latest trends can help you understand the impact that these tendencies have on your banking customer experience. Providing a seamless experience between physical and digital channels, offering personalized experiences, and focusing on technology and retention will guarantee long-term growth.